Tangshan Jidong Cement, a state enterprise with domestically listed shares, has begun work on a large 7200tpd (2.4Mt) cement plant.
Construction of the Jidong plant in Heilongjiang province is a windfall for the local community. A plant this size will bring prestige, tax revenue and employment.
The cement industry, however, is in despair at the new arrival. “It's totally unreasonable," laments an executive at the China Cement Association. Jidong, which reported losses of US$260m last year as cement prices plunged, didn't respond to questions, said The Wall Street Journal.
A recent report by the European Chamber of Commerce in China said that despite efforts by the central government to reduce cement overcapacity, the measures “have so far only managed to slow down the rate at which the problem is expanding." About one quarter of China's cement capacity is idle, claims The Wall Street Journal.
