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Huaxin Cement Co., Ltd.

Source: hubei.gov.cn 06/03/2016 05:06:33

Excessive capacity does not completely mean outdated

In 2015, the production value of cement in China amounted to 2.4 billion tons, which led to serious overcapacity and the industry loss rate of more than 35 percent.

"Compared with severe domestic economic situation, the overseas plants are the new profit points," Li Yeqing, president of Huaxin Cement Co., Ltd introduced, adding that in 2013, the company built a production line in Tajikistan, which opened the prelude to brisk sales of cement in this country and the price was as high as two to three times of that in China.

As of January of 2016, Huaxin has cumulatively manufactured 1.5 million tons of cement, profits and taxes neared 200 million somoni (1 Tajikistani somoni equals to 1.3274 yuan), as well as provided jobs for 400 locals.

Li Yeqing said that the second phase project in Tajikistan has entered debug, while the third phase project are being prepared. In addition, the plants in Cambodia and Kazakhstan were also set up.

During the period of the 13th Five-Year Plan, Huaxin will strive to put ten overseas plants into operation.

Despite iron & steel, cement and plate glass all belonged to excessive production capacity in Hubei; they were heavily in short supply in some countries. Going global could realize de-capacity, cost-saving as well as help those countries establish a more complete industrial system, enhance manufacturing capability and solve employment problems, according to Hubei Economy and Information Technology Commission.