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NRDC to investigate into cement projects

6/25/2009 12:06:00 PM

China, June (EPC News): According to China Securities Journal, the National Development and Reform Commission (NDRC), a macroeconomic management agency under the Chinese State Council, will look into the country’s cement market in order to prevent overinvestment. New production lines will not be added after this study.

The investment in cement production reached RMB 52 billion from January to May this year representing an increase of 78.58% y-o-y. Total of 176 new projects are in operation contributing an additional investment of RMB 16.7 billion. Amongst them, the cement production in the northern and southwestern China grew two-fold y-o-y. NDRC’s investigation will focus on the demand of cement; the scale of existing and newly built projects and the scale of newly approved projects or projects pending for approval. Target areas include Sichuan, Anhui, Hebei and Hunan where the production capacity is already high.