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How Cement Industry Avoids Weak Demand and Overcapacity

timeDec 26,2014

Along with the increase or decline of the growth in the market demand, the investors will increase or reduce industrial fixed asset investment accordingly, while the cement market demand mainly comes from the infrastructure construction, real estate investment, and rural market. So, the overcapacity in cement industry seriously restricts the development of the cement companies.


But how China's cement enterprises break out of the weak demand and overcapacity predicament? Now that the overcapacity is the inevitable trend of the development in market economy, what the cement enterprises should take into consideration is how to adapt and take advantage of the excess capacity and turn it into the capacity advantage by extending industrial chain and reducing cement production costs. It is worth mentioning that under the control of the micro-economy policies, the efforts of China's infrastructure continue to increase, and advancing to the sand aggregate industry has become a trend of cement enterprises that extending the industrial system chain.

Chinese cement enterprises should be based on themselves and industrial status, keeping up with the market pace, cutting expenditure and accelerating industrial transformation and upgrading in order to get rid of weak demand and overcapacity predicament.

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