Cement industry steps into a period of overcapacity, featuring apparent stagnation, continuous sinking price, and severely squeezed profit. The whole industry faces the predicament of capacity reduction.

Analysts point out: all traditional industries must experience a stage of overcapacity, which presents both challenge and opportunity. If fails the challenge, the industry will sink forever; if seize the opportunity, traditional industries will rise in new looks.

Besides economic law, many other factors also contribute to the overcapacity of cement industry: for instance, invest excessively in cement industry in exchange for fast economic growth; local governments blindly attract large amount of capital into the industry; some companies expand irrationally, overlooking market demand, resources and transportation conditions.

Under this situation, cement companies realize the pressure and invest heavily in research and development. A bunch of new technologies are developed in areas such as industrial core technologies, automation systems and energy conservation etc.. Overcapacity of cement industry stimulates cement companies to expedite their technological invention. Up to last year, 90% of domestic cement production lines are new dry type, and the second generation of dry type cement production line is also under intensive research.