Jidong Cement intends to build new line in Xinjiang

Long-term deep "three north" of Jidong Cement (000401) has quietly started the layout of other areas.　　After the acquisition of the layout of Hunan Market, the company's deputy general manager Li Jianjun said, Jidong has just completed the Xinjiang cement market inspection, has a good project, management is deliberating whether the Xinjiang market to invest in cement projects. The development strategy of "three North" strategy (north, northeast and northwest) has been the foundation of the development of Jidong cement. The report showed that the company sold cement and clinker 22.3 million tons in the first half, an increase of 47%. Realize the operating income of 4.58 billion yuan, 79.97% year-on-year growth, achieve net profit of 540 million yuan, growth of 75.37%, earnings per share 0.447 yuan.　　Be able to achieve ahead of the same industry performance, mainly benefit from the company's market supply and demand relationship superior to other regions. Now, Jidong seems to be not satisfied with this. May 2009 through the acquisition of Changsha China-Lian Hai Qiang Concrete Co., Ltd. 90% stake, marking the company began to try to break through the "three North" strategy layout. It is not enough to get rid of the strategic layout with mixed products.　　Li Jianjun said that the current high margin of the Xinjiang market is also attracting the company's attention, the company has just completed the Xinjiang market inspection, has a good project is being communicated, but because the Xinjiang market attracts a large number of investors, it has not yet made a final decision to enter Xinjiang. Jidong Cement said that the adjustment of development strategy in fact began in 2007, the company has the original "three North" development strategy quickly adjusted to regional leading strategy. Management said, Jidong cement a number of new dry cement production line construction is underway, and in many provinces, municipalities and autonomous regions have been built and put into production. According to the plan, by 2011 the company will have 11 production lines into production, the cumulative contribution of cement production capacity of about 20 million tons, is expected to 2010 cement production capacity will exceed 80 million tons, the annual output of 55 million tons.　　The next two years will be the company's production concentration release period, the expected production and sales will continue to maintain high-speed growth, composite growth rate of 40% or so. Investment enthusiasm high "Xinjiang market cement, a ton can sell to 400 dollars above, who is not jealous!" Liu Zouyi, CEO of the Digital Cement network, said Xinjiang has become a hot spot for cement investment since Sichuan province.　　Digital cement network tracking data show that in the late July, Xinjiang region in Urumqi cement prices have risen to 480 yuan/ton, has been two consecutive months than the same period last year level. High margin attracted high investment, statistics show that 2010 1-July, Xinjiang cement industry fixed assets investment of 2.907 billion yuan, last year's 1.528 billion yuan growth of 92.2%, while the national cement industry total investment as of this year July for 101.366 billion yuan, year-on-year increase of only 14%.　　The enthusiasm of cement investment in Xinjiang region is evident. Liu Zouyi said the cement industry was considered to be a severely overcapacity industry, with nationwide restrictions on new orders not applicable in Xinjiang. "NationalTo vigorously support the development of Xinjiang, cement as a basic construction of raw materials, is absolutely impossible to drag. According to authoritative sources, up to now, the Xinjiang region in the production of cement clinker production line A total of 4, before the end of the year there will be 9, in addition to more than 10 clinker production line under construction. Only in Kashgar, landscape cement, Tianshan shares, Pine Construction has 2 Nissan 5000 tons, 2 Nissan 4000 tons and 1 Nissan 3000 tons of production line is under construction.　　Liu Zouyi that in the future, Xinjiang region of the cement market surplus will become inevitable. may also be taken into account this situation, Jidong cement for the Xinjiang market layout is still not a step forward.