China’s Guangdong Tapai Group Co has announced the expected impact on its operations of the local government’s plan to regulate energy consumption in 2021. The energy consumption control requirements of key energy-consuming units reportedly ensure that consumption in 2021 will not exceed the control amount issued for the year.

As a result of the policy, the production capacity of its Jinta, Xinda and Huizhou units of the company’s Jiaoling Branch and its subsidiaries will be affected. Cement output is expected to decline by about 2.5Mta, accounting for 12.2 per cent of the company's annual cement production and sales target.

While this will have an impact on the company's cement production and sales, a recent increase in cement prices is expected to offset the impact. Therefore, it is not anticipated to have a significant influence on the company's operating results for the year.