Xiong Bilin: Calmly facing the financial tsunami, turning crises into opportunities for development

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**Xiong Bilin, Deputy Director of the Industry Coordination Department of the National Development and Reform Commission. On April 1, 2009, the China International Cement Summit was held in Beijing. Xiong Bilin, Deputy Director of the Industry Coordination Department of the National Development and Reform Commission, attended the event and delivered a speech. Below is a summary of his remarks: Distinguished guests, ladies and gentlemen,

In the beautiful month of March, when flowers are in full bloom, the annual China International Cement Summit takes place as scheduled. Hundreds of guests from home and abroad have gathered in Beijing to discuss the key issues related to the development of the world’s cement industry. The Chinese cement industry will also seize this rare opportunity to strengthen cooperation with members of the international community, exchange experiences fully, and share achievements together. On behalf of the Industry Coordination Department of the **Commission for Development and Reform, I extend warm congratulations on the successful holding of this summit! I warmly welcome entrepreneurs, experts, and scholars from all five continents. The theme of this summit is the crises and challenges facing the cement industry in the context of financial crises. This is indeed the main challenge in the current development of the cement industry. 2009 was an extremely extraordinary year. Under the impact of the financial tsunami, the cement industry is facing unprecedented risks and challenges. How to turn crises into opportunities is a focus of concern for everyone. Therefore, strengthening cooperation and communication will surely help the cement industry overcome difficulties and achieve healthy, sustainable development. 　　Through rapid development during the 10th and 11th Five-Year Plans, the Chinese cement industry has achieved significant results in structural adjustment. In 2008, cement production reached 1.39 billion tons, with the proportion of clinker produced by the new dry process accounting for 61%. With the support of industrial policies, large cement groups have grown rapidly, regional markets have gradually taken shape, and the industry’s competitiveness has improved ； Mergers and reorganizations are accelerating, further increasing industry concentration ； In 2008, about 60 million tons of outdated production capacity was phased out. 50% of the new dry-process cement plants already have, or plan to install, waste heat recovery systems, thereby contributing to the achievement of energy conservation and emission reduction goals. In 2008 and early 2009, the **leader** visited the Riyadh Cement Company projects undertaken by Conch Group and Sinoma International in Saudi Arabia, which served as a great encouragement for the cement industry and an acknowledgment of their performance. 　　Although China’s cement industry achieved remarkable results in 2008, facing the severe domestic and international challenges, the gap with developed countries, the historical mission of continuing to grow and strengthen, as well as the arduous task of post-disaster reconstruction, our cement industry still has a long way to go. 　　To mitigate the impact of the international financial crisis on China’s economy, particularly its real economy, the central government introduced a series of policies to boost domestic demand starting in the second half of 2008, in order to ensure the stable and rapid development of the country’s economy. A 4-trillion investment plan was implemented, with a focus on improving people’s livelihoods and addressing issues related to agriculture, rural areas, and farmers; it also aimed at improving infrastructure, strengthening environmental protection, and promoting energy conservation and emission reduction ； At the same time, accelerate the adjustment of the economic structure and the transformation of the mode of economic development. **The cement industry is the first to benefit from increased investment, and it is also the sector that reaps the greatest benefits. The demand for cement is rigid due to extensive urban infrastructure development, rural urbanization, and the construction of public utilities. With the central government’s push for investment, as well as the implementation and advancement of various economic revitalization and post-disaster reconstruction plans, a new wave of infrastructure development is on the way, and the cement industry will also experience new opportunities for growth. Cement consumption is expected to continue growing in 2009 as well. The cement industry must seize this opportunity to promote technological innovation, develop a circular economy, and pursue a path of sustainable development for the cement industry. Mergers and reorganizations in the new context will lead to a rapid increase in industry concentration, with the clinker production of the top 20 large cement companies accounting for 50% of the country’s total production. We are confident that by 2009 the proportion of new dry-process cement will reach 70%, thus completing the tasks set for the 11th Five-Year Plan one year ahead of schedule. Having gone through the global financial crisis of 2008, China’s overseas contracting companies have also been tempered and tested; their service capabilities have improved, allowing them to continue to operate in international markets and achieve success. 　　In 2009, we will work hand in hand with our peers in the global cement industry to swiftly dispel the shadow of the financial crisis, turn this \"crisis\" into an \"opportunity,\" and promote the healthy development of the cement industry. We are willing to engage in extensive exchanges with representatives from the participating countries and carefully listen to everyone’s opinions and suggestions. We believe that cooperation and mutual benefit lead to win-win outcomes! The 11th **Second Meeting set the target for China’s GDP growth this year at 8%; the **Development and Reform Commission will continue to support large cement enterprises in terms of technological advancement, mergers and reorganizations, and expansion overseas, so as to contribute to the steady and rapid development of the national economy. We will achieve excellent results to celebrate the 60th anniversary of the founding of the country!