Competition in the cement market in Guangdong, Guangxi and Hunan provinces is expected to heat up with the mainland's largest producer unveiling a plan to put 42 per cent of its new production capacity for the next three years in China's southern regions.
Executive director Guo Jingbin said Anhui Conch Cement aimed to raise its market share in the three provinces from 0.4 per cent last year to 15 per cent in three years.
It plans to build plants with annual capacity totalling 18 million tonnes in the next three years in these provinces, where total annual demand is estimated at 120 million tonnes.
'We will take part in the restructuring of the unreasonable product structure in the southern markets by building a few large-scale cement production bases there,' Mr Guo said.
Company secretary Zhang Mingjing said about 90 per cent of cement sold in Guangdong was made from outdated, environmentally unfriendly and energy-inefficient technologies.
'Market forces and government policies will gradually phase out the inefficient producers, some of which will then buy clinkers from us to produce cement,' Ms Zhang said.
Anhui Conch's plan will see it compete with Pearl River Delta-focused China Resources Cement Holdings, which plans to boost output by 57.6 per cent to 5.2 million tonnes this year.