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03.2020 Cover Story

The new "five-year" plan of Asia Cement Corporation (China) to enter a new era

Far Eastern Magazine / Editorial Room

        In 2019, the Chinese government announced the " outline of building a transportation power", plus the upcoming "14th five year plan" for China's economic and social development from 2021 to 2025, which is undoubtedly a strong shot for China's cement industry that has undergone supply-side reform in recent years. This "cover story" will show you how Asia Cement Corporation seizes new opportunities, face new challenges and stride forward to a new era.

        

        Since the implementation of supply-side reform, China's cement industry has gradually eliminated outdated cement production capacity, strictly restricted new cement production capacity, cancelled the production of low-grade cement, and advocated the use of high-quality cement, resulting in the decline of total cement production and the increase of average price year by year. The profit level of Asia Cement Corporation, which has always been known as high efficiency, high quality, high environmental protection and low energy consumption, has set new records the in the past two years. For the future, Wu Zhongli, the Chief Executive, is more confident. "The government vowed in the" outline of building a transportation power "that China will become a transportation power in 2035, and many construction demands for supporting facilities around it will come into being. In addition, the 14th five year plan is coming, and the next five to 10 years will be the golden age for the cement industry in mainland. "

        

        Although the prospect is promising, with the rapid development of new technology, the competition of cement industry has become more intense. In addition, the mine resources are in short supply, the cost is high, and the cost of various raw materials is rising, so the production cost is rising. And the requirements for environmental protection are also increasingly strict. Only the environmentally friendly and ultra-low emission enterprises and the cement collaborative disposal enterprises can enjoy the discounts, which is another challenge for the cement industry. Mr. Wu admitted that "technology upgrading and industrial transformation have become the most urgent issues, and most of Asia Cement Corporation's recent major investments are related to this."

        

        1、 Expand production capacity and extend industrial chain

        

        The main products of Asia Cement Corporation are clinker, cement, concrete and admixtures, timbers, etc. At present, the annual production capacity is 26 million tons of clinker and 36.7 million tons of cement. In the next five years, Chief Executive, Mr. Wu plans to expand the Huanggang plant area, and build a new 2 million tons of grinding station in Hanchuan. Through technical improvement, the production capacity of five sets of rotary kilns in Sichuan will be increased to 27.85 million tons of clinker and 41.05 million tons of cement.

        

        In the concrete sector, Asia Cement Corporation (China) has five cement products companies. In the future, it is planned to add two sets of equipment in Sichuan and Hubei respectively to improve the production and sales of concrete. At the same time, a concrete research center will be set up in the Technology Department of Asia Cement Corporation (China) to study the performance of concrete materials and increase the share of high-end concrete customers. In addition, in the fine chemical synthesis admixture part, in addition to continuing to expand the scale in the future, Asia Cement Corporation (China) has also been actively developing raw mill liquid additives and cement kiln liquid desulfurizer since three or four years ago, with a view to improving the quality and application efficiency of cement construction.

        

        As we all know, the production of cement is inseparable from limestone, and the infrastructure construction is inseparable from concrete. Therefore, whether the reserves of limestone in the mine are sufficient and the mining results are very important. In the future, Chief Executive, Mr. Wu plans to increase the limestone reserves in Jiangxi, Huanggang, Sichuan and other places respectively, hoping to have more resources and continue the life cycle of the cement kiln. "Timbers have created a lot of profits for Asia Cement Corporation (China), which is expected to become another blue ocean of the cement industry in the future."

        

        In addition to rapidly expanding existing capacity to meet market demand, Asia Cement Corporation (China) also extends its industrial chain to the shipping logistics industry to enhance the convenience of cement transportation. "In the future, we will continue to build new ships, expand the business scale of Wuhan Changya shipping company, and increase the number of our own ships from the current 9 to 18," Chief Executive, Mr. Wu said. “By using our own ships, they can transport along the three main rivers of Han River, Yangtze River and Gan River, serve companies in Jiangxi, Hubei and Jiangsu to let the traffic volume and revenue grow."

        2、 Five aspects to build the top factory

        

        In addition to extending the industrial chain, Asia Cement Corporation (China) has continued to promote the construction of safety standardization on the basis of "safety", taking into account efficiency, quality, environmental protection and harmony. In the efficiency part, in addition to mastering the real-time operation of each production system through the screen in the central control room, a third conveyor belt is planned to be built in Sichuan to connect Lanfeng Cement and make the raw material supply line more smooth. In terms of quality, we should actively make research and develop technology, improve the quality of cement, and strengthen the application of new technology. In terms of environmental protection, more and more investment in environmental protection will be put into use year by year. Green factories, green mines and ecological agriculture are the continuous goals of Asia Cement Corporation (China). In terms of promoting environmental harmony, we will also build a better homeland with the local community by supporting community infrastructure, education, caring for the disadvantaged groups, poverty alleviation, etc.

        

        With the advent of the era of artificial intelligence, Chief Executive, Mr. Wu plans to further complete the intelligent construction of all factories within five years, including intelligent mining with GPS + online automatic analysis command system; intelligent production with artificial intelligence technology instead of human brain; intelligent control of cement flow with automatic bag insertion / loading; intelligent control with full-automatic sampling, sample preparation, testing and ingredients. It is expected to save as much as possible in terms of coal consumption, power consumption, production line staffing, etc., and become a smart factory that is environmentally friendly and resource-saving.

        

        3、 Innovative thinking drives industrial transformation

        

        Due to its high temperature environment, the cement kiln can assist in the disposal of domestic, construction, industrial, medical and other wastes, as well as municipal sludge, contaminated soil, waste tires, hazardous wastes and other wastes, and degrade heavy metals and dioxin. The alkaline environment in the kiln is conducive to neutralizing acid and harmful gases, and the residue can be solid melted in the clinker, and the calorific value can also be recycled for the calcination of cement, therefore, it has become an environmental protection disposal project vigorously advocated by the government in recent years.

        

        Taking Asia Cement Corporation (China) as an example, the production of 1 ton clinker can deal with about 50 kg of garbage or waste, which is more environmentally friendly than waste incineration power generation. At present, Jiangxi Yadong Cement has assisted in the treatment of general industrial wastes and the comprehensive utilization of construction wastes; Hubei Oriental Petrochemical (Taiwan) has assisted in the treatment of urban sludge, and Sichuan Yadong Cement has also assisted in the comprehensive utilization of drilling cuttings. In the future, Jiangxi and Sichuan will further study how to deal with hazardous wastes, and companies will also study and prepare the project of replacing fuel with waste tires in cement kiln. "In other words, Asia Cement Corporation (China) not only produces cement, but also works as a functional body in the city. It is a laborer who purifies the environment and makes great contributions to society. "President Wu spoke with pride.

        

        4、 Focusing on the market and realizing sustainable management

        

        The core market of Asia Cement Corporation (China) is the big Chengdu market with Chengdu as the center, the big Ganjiang and Nanchang market with Nanchang, Jiujiang as the center, and the big Wuhan market with Wuhan in Hubei Province as the center. As far as the Yangtze River coastal area is concerned, it is an auxiliary market. For business operation, this is a layout that can be occupied and retreated. When the market is booming, the products can be sold directly in the place of origin. If the market is depressed, the products can be sold in the peripheral market. Because of this, Asia Cement Corporation (China) has continued to achieve good results in the past.

        

        In view of the new round of cement demand in mainland China is taking shape, it is estimated that the revenue and net profit of Asia Cement Corporation (China) will still maintain a high level in the next five years, and it will truly realize the sustainable operation of the enterprise by reserving resources, building first-class factories and industrial transformation.

         

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