Page 6 - SCBJ-201612
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NA BRIEFING South China Business Journal
CCPlhoaninnssaotlMiodaaLrtokiweotnerWoLfaotCgcehims:teicnstCFoirstmss and
Photo from bing.com
China’s cement firms to consolidate China to invest US$450 billion to-
by over 50 percent by 2020
wards modernizing agriculture by
60 percent of China’s cement capacity is to be consoli-
dated into 10 of the country’s top production companies by 2020
2020. There are around 3500 cement producers in China, and
the country’s Cement Association has petitioned to speed up the The Agricultural Development Bank of China has recently agreed
consolidation process, which will involve numerous closures of to loan around RMB 3 trillion by 2020 to aid the modernization
cement plants and mergers. This will require existing cement of China’s agriculture industry. The Ministry of Agriculture
producers to jointly pool RMB 20 billion into a restructuring signed an agreement with the bank to protect national food
fund, with many commentators suggesting that the top produc- security, support the sector’s business overseas and to develop
tion companies should contribute the most. China accounts for China’s seed industry. It also aims to increase efficiency and
around 60 percent of global cement production, and is one of encourage income growth in rural areas. It is not clear if this
the industries suffering from serious overcapacity along with the deal is separate from the bank’s announcement made in May
steel and coal industries. The industry is required to cut 390 mil- of this year to lend RMB 3 trillion to reduce poverty via means
lion tons of capacity, and 130,000 jobs over the next five years in of agricultural investment. The bank will be responsible for
order to reach a balance between supply and demand. managing financial services regarding the deal.
4
CCPlhoaninnssaotlMiodaaLrtokiweotnerWoLfaotCgcehims:teicnstCFoirstmss and
Photo from bing.com
China’s cement firms to consolidate China to invest US$450 billion to-
by over 50 percent by 2020
wards modernizing agriculture by
60 percent of China’s cement capacity is to be consoli-
dated into 10 of the country’s top production companies by 2020
2020. There are around 3500 cement producers in China, and
the country’s Cement Association has petitioned to speed up the The Agricultural Development Bank of China has recently agreed
consolidation process, which will involve numerous closures of to loan around RMB 3 trillion by 2020 to aid the modernization
cement plants and mergers. This will require existing cement of China’s agriculture industry. The Ministry of Agriculture
producers to jointly pool RMB 20 billion into a restructuring signed an agreement with the bank to protect national food
fund, with many commentators suggesting that the top produc- security, support the sector’s business overseas and to develop
tion companies should contribute the most. China accounts for China’s seed industry. It also aims to increase efficiency and
around 60 percent of global cement production, and is one of encourage income growth in rural areas. It is not clear if this
the industries suffering from serious overcapacity along with the deal is separate from the bank’s announcement made in May
steel and coal industries. The industry is required to cut 390 mil- of this year to lend RMB 3 trillion to reduce poverty via means
lion tons of capacity, and 130,000 jobs over the next five years in of agricultural investment. The bank will be responsible for
order to reach a balance between supply and demand. managing financial services regarding the deal.
4
