Conch sees China demand rising, Indonesian plans proceeding ‘smoothly’

Chairman of Anhui Conch, Guo Wensan, has said that Chinese cement demand growing despite curbs on the housing market.

Speaking to Dow Jones Chinese Financial Wire on the sidelines of the National People’s Congress, Mr Wensan said the government's drive to push the construction of subsidised affordable housing is successfully offsetting declining cement demand from the private housing market.

Cement demand from the 10 million affordable housing units started last year will peak from the second quarter of this year onwards, he said. "This year there will be another 7 million public housing starts, so we remain confident," he added.

Guo also added that the cement industry has benefited from consolidation since last year, when some cement companies were eliminated.

On Conch’s plans to invest in the Indonesian cement sector, Mr Wensan said that the company is still  working to obtain final approval from the Indonesian government but its plans to set up four cement plants in the Southeast Nation are “proceeding smoothly.” Meanwhile, the company is examining projects in Brazil and Mongolia, among other opportunities,