China cement industry enters the era of big mergers and acquisitions

"Future cement companies will either move towards the alliance and take the path of mergers and acquisitions, or the end of the elimination and eventual closure."　　Donco said that the domestic large cement enterprises are now moving to control the resources and control the market price of the road, the future of the cement market will be able to control their own, regional market prices have the influence of the group-type enterprises.　　Flying talk about mergers and acquisitions October 23, for Donco, destined to be a busy travel day. He rushed from Zhejiang Lanxi hurried to neighboring Yiwu, in order to catch up with the morning 10 from Yiwu to Shanghai South Railway station, "Harmony" EMU. "The first time I took a bullet train was to get to Shanghai quickly." Donco told reporters that Yiwu is only his first destination, his next goal is from Shanghai South railway station to Shanghai Hongqiao International Airport, three o'clock in the afternoon to fly to Hohhot, Inner Mongolia.　　Although the journey is far away, the itinerary is somewhat complicated, but Donco energetic, because there is one for their company, perhaps far-reaching things are waiting for him-the largest cement manufacturer in Inner Mongolia, the Wulanchabu Cement group, to investigate and negotiate to determine whether the two sides can reach a cooperation agreement. Donco's identity is the assistant general manager of Zhejiang Red Lion Cement Co., Ltd.　　He told reporters that on the one hand, it is to investigate the specific production of target targets, on the other hand, to see how the two sides can be through the form of cooperation-joint ventures or the overall acquisition.　　It is understood that the Red Lion Holding Group is one of the largest private cement companies in the mainland, ranked among the top 12, as at the end of last year, the total assets of 3 billion yuan, the annual output of high grade new dry cement 14.5 million tons, clinker production capacity of the 6th place in the country.　　The merger and acquisition of the Red Lion is only a typical microcosm of the recent merger and reorganization of China's cement industry. In recent years, China Building materials group has set off a series of mergers and acquisitions reorganization action. October 8, China Building materials Group and Hebei Tangshan Municipal government signed a strategic cooperation framework agreement, the establishment of northern Cement company into the north cement emerging markets. According to the agreement, the two sides intend to cooperate in the new dry cement, ceramics, building materials technology research and development, complete sets of equipment and other fields. and plans to invest 10 billion before 2010, integration of Tangshan and surrounding areas of building materials industry. The previous September 26, China Building materials company also spent billions of dollars in Shanghai to set up a southern cement.　　Only half a month apart, Chinese building materials have formed two large subsidiaries, showing the strategic shift of Chinese building materials from south to north. Interestingly, October 22, as China's largest competitors in building materials, China Sinoma Group also signed a strategic cooperation agreement with Tangshan. The two sides will jointly build the North's largest non-metallic materials production, research and development and equipment manufacturing center in Tangshan. Specific projects include: Sinoma Group and Tangshan in Tangshan to establish the largest in northern China, the annual control sales of more than 30 billion yuan of modern cement manufacturing center, in Tangshan to establish annual sales of more than 5 billion yuan machinery and equipment manufacturing, engineering and Technology Integration Service Center; Sinoma Group invested in the construction of environmental protection and energy saving industryThe formation of the largest environmental protection and energy-saving industrial group in North China, the use of Sinoma Group high new materials industry core technology and Tangshan's industrial infrastructure, resource advantages and comprehensive supporting capacity, investment in the construction of high new materials industry.　　Obviously, two competitors are optimistic about the development of the Bohai Rim economic development prospects, in this to catch the fight. At the same time, foreign giants also have the urge to merge in China.　　Lafarge mergers and acquisitions of Sichuan double Horse (Love shares, quotes, information), Morgan Ding Hui shares in the landscape, Goldman Sachs 600 million shares of Red Lion Cement, Warren acquisition qinling Cement-cement industry mergers and acquisitions are brilliant.　　The era of integration? "The Chinese cement industry is now entering a later stage of merger and reorganization.　　Donco said that after years of rapid development, China's cement industry is now the rest of the value of mergers and acquisitions of enterprises, the Chinese building materials, such as large-scale mergers and acquisitions reorganization behavior, fully explained its strong commitment to make the cement industry, which will give the existing cement companies have a huge impact, which may make the industry reorganization speed.　　Donco said that cement is a resource consumption-oriented enterprises, with the reduction of resources, large enterprises pay more attention to the control of resources, their company now in addition to the development of Inner Mongolia, in Guizhou, Yunnan and other western regions also have investment, is to occupy the western market, on the other hand to control the future development of Industry insiders said that, because of the specificity of the cement industry, cement business scope is limited to 300 kilometers, the regional characteristics are very obvious, coupled with the low threshold of China's cement market access, a large number of small-scale enterprises, making the industry concentration is low, resulting in duplication of construction, reducing the use of efficiency.　　With the increasing demands of the State for environmental protection and the importance of resource saving, the reorganization and merger of cement industry is imperative. According to the data, the production concentration of the top 50 cement giants in the world has reached more than 60%. According to the Law of industry development, the leading cement enterprises in the regional market share of more than 60%, can play a role in stabilizing regional prices.