China Company Research -- Tangshan Jidong Cement Company Limited

China Company Research -- Tangshan Jidong Cement Company Limited

Tangshan Jidong Cement Company, Ltd is one of the twelve large-scale cement groups supported by nation as well as one of the largest modernized cement company and cement listed company.


At the end of 2007, the total production capacity of Tangshan Jidong Cement Company was 25 million tons. In addition, the company is building in seven production lines, of which, the clinker production capacity 12.1 million tons and cement production capacity 13.1 million tons. After the seven production lines start into operation gradually at the second half year of 2008, the total output of cement will reach nearly 40 million tons. Therefore, Tangshan Jidong will enter a fast development period.

In 2007, the revenue of company main business was 3.86 billion yuan(RMB), an increase of 32.58% year-on-year and net profit of 420 million yuan(RMB), an increase of 85.15% year-on-year. The sales of cement has increased rapidly than 2006, the total output of cement was 17.5267 million tons, up 28.67% year-on-year; the total output of clinker was13.7597 million tons, up 17.86% year-on-year; the cement has sold for 17.8826 million tons, throughput was 102.03%.

In January,2008 Tangshan local government and Sinoma Group signed an cooperation agreement that Sinoma Group will inject no less 13 billions yuan(RMB) to Jidong Cement Group in three year period, the capacity of cement will reach to 130 million tons.

In terms of the rapid growth of fixed asset investment in China makes a strong demand of cement, and central government’s environment policy will make some small and backward cement production lines out of market, therefore, predicting the shortage of cement will be 145-156 million tons, accounting for 45-49 of the total cement output of 2007. Thus, there will be more developing space for Tangshan Jidong Ltd.

1. Profile
2. Operating performances of 2007
3. Rapid expansion of production capacity
3.1 “Three North”planning forms initially
3.2 Going on implementation of “Three North”planning
3.2.1 The expansion of capacity will be raising the regional marketing share.
3.2.2 The new measure of expansion strategy.
3.3 Cooperation with Sinoma Group
4. Analysis of regional competition
4.1 Beijing-Tianjin-Hebei: the main markets
4.1.1 Analysis of regional demands
4.1.2 Analysis of regional prices
4.1.3 Analysis of regional competition
4.2 Shanxi: fierce competition and waiting for the leader
4.2.1 Analysis of regional market demands
4.2.2 Analysis of regional competition
4.3 Inner Mongolia
4.3.1 Analysis of regional market demands
4.3.2 Aement prices in Inner Mongolia
4.3.3 Analysis of regional competition
4.4 North-eastern region: Liaoning and Jilin provinces
4.4.1 Analysis of regional market demand
4.4.2 Analysis of regional prices
4.4.3 Analysis of regional competition
4.5 Shaanxi: the main market of the western region
4.5.1 Analysis of regional market demand
4.5.2 Cement prices in Shaanxi Province
4.5.3 Analysis of regional competition
5. Analysis of Development prospect
5.1 A bright prospect of cement industry
5.2 The strong demands of cement
5.3 Eliminating the backward production line to cut down exist supply
5.4 Analysis of the overall market space
5.5 Cement prices
6. Bottleneck of the development of the company


Charts
Figure cement prices in Inner Mongolia in 2005- Jan 2008
Figure cement prices in Liaoning Province in 2005-Jan 2008
Figure cement prices in Jilin Province in 2005- Jan 2008
figure the company plans of cement production capacity expansion 2003-2010
Figure Sinoma Group's cement enterprises
Figure cement prices in Hebei Province in 2005- Jan 2008
Figure fixed assets investment and Cement investment in Hebei province
Figure cement prices in Shaanxi Province in 2005-Jan 2008
Figure the main target market of urban fixed-asset investment in 2001- Nov 2007
Figure the main target market of urban fixed assets investment Jan-Nov 2007
Figure P.O42.5 cement prices


Table 2006-2007 operating performances
Table introduction of production lines
Table 2008-2009 uncompleted production lines
Table Sinoma Group's cement assets
Table Hebei Province 11th Five-Year planning: key infrastructures
Table Beijing-Tianjin-Hebei: clinker production lines
Table Tianjin and Tangshan: new dry process production lines
Table Shanxi 11th Five-Year planning: key projects
Table Shanxi: major new dry process production lines
Table Inner Mongolia region 11th Five-Year planning: key projects
Table Production lines in Inner Mongolia
Table North-eastern region: new dry process production lines
Table Shaanxi: the main NSP production lines
Table Planning of elimination backward production lines