M & A is still the main theme in the development of cement industry As a highly homogeneous industry, scale merit is very significant in cement industry. Under the same situation in all aspects of hardware conditions, the scale is equal to competitive advantage for the cement enterprises in the same region. Usually cement enterprises realize expansion by inner-expansion and extension. In the early staget, cement enterprises primarily in technology led to the escalation of production expansion and increasing maturity of the enterprise development, mergers and acquisitions have become the access to resources, the main means of production capacity. On the China background cement industry low concentration, it is an inevitable trend. The emergence of industry-scale enterprise integration and the development of the industry. By 2004 there are 5042 China cement enterprises, of which 970 million tons of cement output, the average size of less than 200,000 tons. At present, the average size of 900,000 tons of cement companies abroad, the United States an average of 800,000 tons, with an average of over 200 million tons, such as Japan, South Korea over 400 million tons. Therefore, expanding the scale, especially through merger and reorganization expanding the scale of China cement industry is the important step to enhance market competitiveness. Currently Cement industry is oversupply, coupled with macro-control cement prices fluctuating around, while the cost of production is increasingly high, many cement enterprises, particularly small and middle scale enterprises troubled in the crisis, which has provided an opportunity for the sector integration. At present, foreign and domestic cement two-way merger has accelerated ,in the next three to five years, the cement mergers and acquisitions on cement industry is one of the main themes of the development, in this progress ,the cement enterprises with ability of mergers and acquisitions, in particular, "scale-location" advantage will be concerned.
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