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China cement industry drives urbanization with massive output, rising exports, and waste heat recovery. CRCC's Yunfu plant in Guangdong targets 10,000 tons per day and 18 MW power, boosting energy efficiency amid looming surplus capacity.
Inside the Issue
China's cement industry dominates output, fuels urbanization, adds waste heat recovery, yet risks oversupply.
- Global cement output topped 2.5 billion tons in 2009.
- China produced over half of global cement, doubling since 2000.
- Exports up, but surplus capacity and project delays signal caution.
The global economic slowdown has done little to deter China's growth. The country has become one of the new focal points of information technology and global industry, providing a seemingly stable economic atmosphere.
Rapid urbanization, an underappreciated currency and the ambition to become a world-class leader in a booming power sector have become some of the foremost drivers of the modern China.
A strong grasp on some of the world's most important industries does not hurt either. Rare earth metals and coal, including coal gangue projects underway, chemical production, and even petroleum refining are some of the industry hotbeds now, but steel, glass, and cement production are the literal building blocks of urbanization. China is not alone in rapid growth. Nations that benefit from Chinese imports of steel, glass, and cement have the potential to feel the warm glow of growth.
Global cement production in 2009 was more than 2.5 billion tons, dipping only slightly from the previous year. China, whose cement output has doubled since 2000, accounted for more than half of all cement produced globally last year. This year, China's cement exports have risen, although the future of the industry is uncertain as national 2015 energy plans continue to evolve. The ominous cloud of surplus capacity looms in the not-too-distant future. It appears that companies are beginning to slow down growth. Although more than $5.5 billion worth of cement projects are planned for completion between the beginning of 2011 and the end of 2012, only slightly more than $1 billion worth of these projects has actually commenced construction.
One of the features that is being increasingly implemented in the country's cement production facilities is the use of waste heat to generate power to help address a green energy gap in China today. China Resources Cement Company CRCC, a subsidiary of China Resources National Corporation, is working in association with South China Institute of Environmental Sciences to construct such a cement facility. Facilities owned and operated by other companies have reported that the capture of waste heat from the cement manufacturing process raises the plant's overall efficiency by 30 in some cases.
CRCC plans to begin construction of the new cement plant next year near Yunfu, in the Guangdong province. The $224 million facility will begin operations in late 2013 and will have a cement production capacity of 10,000 tons a day. The plant will generate 18 megawatts of waste heat power amid ongoing power sector reforms that could be provided to the local grid.
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