“In East China, our current quotation is 270-280 yuan/ton, and the price of Conch cement (14.23, -0.36, -2.47%) is 230 yuan/ton. You ask about conch cement, so low-price competition, the company’s Whether or not the profits will be guaranteed, do the workers have to support them?†said a reporter from a cement company sales manager of China National Building Materials.
"We just want to ensure market share, after all, the company's production capacity is so great, we must always ensure the operation, there is no low-cost drag down the Chinese building materials, said." Conch Cement Securities Department is full of grievances.
Since the strategic alliance between Conch Cement and China Building Materials collapsed in 2007, the two companies have been attacking the city and the battle is gradually ebbing. Between the central SOE giant and the regional leader, who is going to rise or fall?
Rodeo fight
The cement industry in 2012 was very sad. In addition to factors such as sluggish demand, industry insiders bluntly stated to “Gold Securitiesâ€: “The two families of CNBM and Conch have competed vigorously, leading to a serious decline in prices.â€
A cement company sales manager of China National Building Materials Group spearheaded Conch Cement. “In the East China region, our current price is 270-280 yuan/ton, and Conch's offer is 230 yuan/ton. You ask about the conch, so it's cheap. Business, the company's profits are not guaranteed, and workers need not live?"
A few years ago, his company was incorporated into China Building Materials. “In recent years, the cement giants have franticly snagged, and most of our market share in this region has been divided up by China National Building Materials and Conch Cement. Conch Cement is so hard that we are still quite good. After all, doing business has its own stable customers. The marketing strategy, but other peers in the region, the cost-effective control of the low profit, the high cost of almost no profit. Either insist on death or wait to be acquired."
The numbers have witnessed the madness of competition. In 2011, Conch Cement successfully acquired 6 cement companies including Yunnan Zhuangxiang, Guangxi Sihe, and Shaanxi Zhongxi, with an added cement capacity of 10.86 million tons. In the first quarter of this year, four projects including Nanwei in Sichuan, Beigu in Zhenjiang, Hami in Xinjiang, and Lingyun in Guangxi were successfully merged and the Chongqing Gaolin Grinding Station project was hosted.
The pace of expansion of China's building materials is also fierce. The annual cement production capacity has rapidly increased from 11 million tons at the beginning of 2006 to 250 million tons at the end of last year. In June of this year, China National Building Materials Group (CBW) acquired non-stop Shandong Cement and Sichuan Chuankui Cement, and in July it added Yunnan Tianheng Cement.
Chen Hao (a pseudonym) works for a cement design institute and often deals with small and medium-sized cement companies. He disclosed that, “With the improvement of the national policy barriers to entry, the acquisition of new approvals for cement production lines will be more difficult to obtain, and the new construction will take time, they tend to buy mergers and acquisitions, buy ready-made more conducive to seize the market. Some small businesses I contact Now we rely on the resale production line to live, a production line that originally sold 50 million yuan and 10 billion yuan. Then we build up enough horsepower to build 2 production lines and hope to sell them again."
“Our local company has heard that it will be acquired by China National Building Materials recently. However, in terms of capacity, Conch could still fight for China Construction.†The sales manager stated that last year, Conch Cement's sales revenue was 48.6 billion yuan, while China National Building Materials reached 80 billion yuan. yuan.
Central dispute
One is a large-scale state-owned enterprise, and the other is a strong local state-owned enterprise. According to people in the industry, the gap between China National Building Materials and Conch Cement is due to the fact that China Building Materials has broken the rules.
On July 1, 2006, Conch Holdings and China National Building Materials held a signing ceremony for the strategic cooperation and transfer of Xuzhou Company. Xuzhou Conch Daily Production 10,000 tons line, which was put into production for less than two years, was declared as the official Yizhuzhong Building Materials. According to media reports at the time, Conch Group's acquisition of the Xuzhou Cement Plant in 2000 was aimed at expanding Conch's base area to northern Jiangsu to realize its ambition to swallow South China and contain East China. At that time, China Building Materials was cultivating in the Huaihai Economic Zone, and Conch Group was dominating the southern region. As the China Cement Association required large groups to form their own development areas and priorities, the Conch Group had to hand over the few million-ton lines in Xuzhou.
For more than one year later, China National Building Materials united with Zhejiang Jianfeng, Zhejiang Hushan, Zhejiang Cement Co., Ltd. and other companies to form Southern Cement Co., Ltd., a 30-million-ton cement production capacity involving four provinces and one city: Jiangsu, Zhejiang, Jiangxi and Hunan. This completes the big integration.
“The well water is not in violation of the river water. It is an unwritten agreement on the layout of the large cement group in the market. The emergence of the southern cement completely broke the two sides. Since then, China National Building Materials has also established several platforms for Zhonglian Cement, North Cement and Southwest Cement. Conch formed the trend of encirclement," said the person familiar with the "Golden Securities" revealed.
Under China Construction Press, Conch Cement began to “fire†into the two core profit areas of China Construction, the Shandong operating area and the Huaihai operating area. On June 10, 2009, Conch's first project in Shandong, the Jining Conch Project, was officially launched and was completed and put into operation in December of the following year. In June this year, the Suzhou Conch production line ignited. "The Xuzhou Conch this important chess piece was abandoned, and Suzhou and Xuzhou are not far apart, and the geographical advantage is outstanding. It is also considered to be the old conch to regain the old wish." Industry insiders said.
The price became the edge of Conch's counterattack. An obvious example is that in May this year, China National Building Materials dominated the kiln to limit production and insured prices. Its South Cement raised the price per ton of Hangzhou products to 380 yuan/ton, and Conch's offer remained at 350 yuan/ton.
“Conch has always had the advantage of low cost, and it can be controlled at 153 yuan/ton in previous years, while other companies have 180-190 yuan per ton cost, and their quality is still not good. Only by knocking down the price can we put it to a halt. Afterwards.†The industry insiders also said that Conch's management is good, incentives are also in place, the middle-level cadres have 10 million. It is reported that in 2011, the net profit margins of Conch Cement and China Building Materials were 24.29% and 13.42%, respectively.
Who is the owner?
Regarding the accusation of “low price dragging down opponents,†Conch Cement officials denied to reporters yesterday. “This is not selling so low to counter China’s building materials. It is only to guarantee market share. The company has such a large capacity that it must be normal. Operation, preservation of the price is our bottom line. Once the industry recovers in the second half of the year, cement prices will surely rise."
Ren Yong, the general manager of Conch Group, responded more definitively by saying, “In East China, Conch Cement is advocating a full and market-oriented competition mechanism. High profitability in East China in 2011 has resulted in some relatively backward and non-competitive advantages. Enterprises not only survive but also produce at full capacity, which is detrimental to the healthy development of the market. Market profits can be controlled within a reasonable range to further optimize the industry structure."
Conch is now very familiar with the market operation. It is understood that after the acquisition of Baoji Zhongxi last year, Conch's production capacity in the Baoji region reached 80%. In the first quarter of this year, when the price of cement in various regions fell, the price in the region rose by 50 yuan/ton against the market.
China Construction is even worse. Industry insiders pointed out that Song Zhiping, founder of the China Construction Group, was very strong and was highly valued by the SASAC. He also serves as the chairman of the board of the Sinopharm Group. He is expected to win two Fortune Global 500 this year.
“One mountain can hardly accommodate two tigers.†A researcher in Shenzhen analyzed that “China State Construction has strong financial strength and superb capital operation skills. Conch Cement has accumulated advanced production processes and management concepts. Ultimately, whoever is up and down is not good at speculation.†Another person in the industry is not rumored, "The two countries have deeper government backgrounds. Imagine which one is completely outraged by another. I am afraid it is not realistic. However, the current competitive approach has brought about a lot of joy. It is difficult to judge at the moment."
"We just want to ensure market share, after all, the company's production capacity is so great, we must always ensure the operation, there is no low-cost drag down the Chinese building materials, said." Conch Cement Securities Department is full of grievances.
Since the strategic alliance between Conch Cement and China Building Materials collapsed in 2007, the two companies have been attacking the city and the battle is gradually ebbing. Between the central SOE giant and the regional leader, who is going to rise or fall?
Rodeo fight
The cement industry in 2012 was very sad. In addition to factors such as sluggish demand, industry insiders bluntly stated to “Gold Securitiesâ€: “The two families of CNBM and Conch have competed vigorously, leading to a serious decline in prices.â€
A cement company sales manager of China National Building Materials Group spearheaded Conch Cement. “In the East China region, our current price is 270-280 yuan/ton, and Conch's offer is 230 yuan/ton. You ask about the conch, so it's cheap. Business, the company's profits are not guaranteed, and workers need not live?"
A few years ago, his company was incorporated into China Building Materials. “In recent years, the cement giants have franticly snagged, and most of our market share in this region has been divided up by China National Building Materials and Conch Cement. Conch Cement is so hard that we are still quite good. After all, doing business has its own stable customers. The marketing strategy, but other peers in the region, the cost-effective control of the low profit, the high cost of almost no profit. Either insist on death or wait to be acquired."
The numbers have witnessed the madness of competition. In 2011, Conch Cement successfully acquired 6 cement companies including Yunnan Zhuangxiang, Guangxi Sihe, and Shaanxi Zhongxi, with an added cement capacity of 10.86 million tons. In the first quarter of this year, four projects including Nanwei in Sichuan, Beigu in Zhenjiang, Hami in Xinjiang, and Lingyun in Guangxi were successfully merged and the Chongqing Gaolin Grinding Station project was hosted.
The pace of expansion of China's building materials is also fierce. The annual cement production capacity has rapidly increased from 11 million tons at the beginning of 2006 to 250 million tons at the end of last year. In June of this year, China National Building Materials Group (CBW) acquired non-stop Shandong Cement and Sichuan Chuankui Cement, and in July it added Yunnan Tianheng Cement.
Chen Hao (a pseudonym) works for a cement design institute and often deals with small and medium-sized cement companies. He disclosed that, “With the improvement of the national policy barriers to entry, the acquisition of new approvals for cement production lines will be more difficult to obtain, and the new construction will take time, they tend to buy mergers and acquisitions, buy ready-made more conducive to seize the market. Some small businesses I contact Now we rely on the resale production line to live, a production line that originally sold 50 million yuan and 10 billion yuan. Then we build up enough horsepower to build 2 production lines and hope to sell them again."
“Our local company has heard that it will be acquired by China National Building Materials recently. However, in terms of capacity, Conch could still fight for China Construction.†The sales manager stated that last year, Conch Cement's sales revenue was 48.6 billion yuan, while China National Building Materials reached 80 billion yuan. yuan.
Central dispute
One is a large-scale state-owned enterprise, and the other is a strong local state-owned enterprise. According to people in the industry, the gap between China National Building Materials and Conch Cement is due to the fact that China Building Materials has broken the rules.
On July 1, 2006, Conch Holdings and China National Building Materials held a signing ceremony for the strategic cooperation and transfer of Xuzhou Company. Xuzhou Conch Daily Production 10,000 tons line, which was put into production for less than two years, was declared as the official Yizhuzhong Building Materials. According to media reports at the time, Conch Group's acquisition of the Xuzhou Cement Plant in 2000 was aimed at expanding Conch's base area to northern Jiangsu to realize its ambition to swallow South China and contain East China. At that time, China Building Materials was cultivating in the Huaihai Economic Zone, and Conch Group was dominating the southern region. As the China Cement Association required large groups to form their own development areas and priorities, the Conch Group had to hand over the few million-ton lines in Xuzhou.
For more than one year later, China National Building Materials united with Zhejiang Jianfeng, Zhejiang Hushan, Zhejiang Cement Co., Ltd. and other companies to form Southern Cement Co., Ltd., a 30-million-ton cement production capacity involving four provinces and one city: Jiangsu, Zhejiang, Jiangxi and Hunan. This completes the big integration.
“The well water is not in violation of the river water. It is an unwritten agreement on the layout of the large cement group in the market. The emergence of the southern cement completely broke the two sides. Since then, China National Building Materials has also established several platforms for Zhonglian Cement, North Cement and Southwest Cement. Conch formed the trend of encirclement," said the person familiar with the "Golden Securities" revealed.
Under China Construction Press, Conch Cement began to “fire†into the two core profit areas of China Construction, the Shandong operating area and the Huaihai operating area. On June 10, 2009, Conch's first project in Shandong, the Jining Conch Project, was officially launched and was completed and put into operation in December of the following year. In June this year, the Suzhou Conch production line ignited. "The Xuzhou Conch this important chess piece was abandoned, and Suzhou and Xuzhou are not far apart, and the geographical advantage is outstanding. It is also considered to be the old conch to regain the old wish." Industry insiders said.
The price became the edge of Conch's counterattack. An obvious example is that in May this year, China National Building Materials dominated the kiln to limit production and insured prices. Its South Cement raised the price per ton of Hangzhou products to 380 yuan/ton, and Conch's offer remained at 350 yuan/ton.
“Conch has always had the advantage of low cost, and it can be controlled at 153 yuan/ton in previous years, while other companies have 180-190 yuan per ton cost, and their quality is still not good. Only by knocking down the price can we put it to a halt. Afterwards.†The industry insiders also said that Conch's management is good, incentives are also in place, the middle-level cadres have 10 million. It is reported that in 2011, the net profit margins of Conch Cement and China Building Materials were 24.29% and 13.42%, respectively.
Who is the owner?
Regarding the accusation of “low price dragging down opponents,†Conch Cement officials denied to reporters yesterday. “This is not selling so low to counter China’s building materials. It is only to guarantee market share. The company has such a large capacity that it must be normal. Operation, preservation of the price is our bottom line. Once the industry recovers in the second half of the year, cement prices will surely rise."
Ren Yong, the general manager of Conch Group, responded more definitively by saying, “In East China, Conch Cement is advocating a full and market-oriented competition mechanism. High profitability in East China in 2011 has resulted in some relatively backward and non-competitive advantages. Enterprises not only survive but also produce at full capacity, which is detrimental to the healthy development of the market. Market profits can be controlled within a reasonable range to further optimize the industry structure."
Conch is now very familiar with the market operation. It is understood that after the acquisition of Baoji Zhongxi last year, Conch's production capacity in the Baoji region reached 80%. In the first quarter of this year, when the price of cement in various regions fell, the price in the region rose by 50 yuan/ton against the market.
China Construction is even worse. Industry insiders pointed out that Song Zhiping, founder of the China Construction Group, was very strong and was highly valued by the SASAC. He also serves as the chairman of the board of the Sinopharm Group. He is expected to win two Fortune Global 500 this year.
“One mountain can hardly accommodate two tigers.†A researcher in Shenzhen analyzed that “China State Construction has strong financial strength and superb capital operation skills. Conch Cement has accumulated advanced production processes and management concepts. Ultimately, whoever is up and down is not good at speculation.†Another person in the industry is not rumored, "The two countries have deeper government backgrounds. Imagine which one is completely outraged by another. I am afraid it is not realistic. However, the current competitive approach has brought about a lot of joy. It is difficult to judge at the moment."
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