How to Deal with Excess Production Capacity Efficiently?

   In recent years, excess production capacity gradually becomes a serious problem in cement rotary kiln enterprise and relevant construction industries. What’s more, the price of building materials which regard cement and iron steel as representatives goes down sharply. Accordingly, the profits of cement and iron steel industry keeps going down. Some enterprises are faced with shut-down crisis.
   The excess production capacity of building industries has been paid much attention to. In addition, the problem was put forward in two sessions of this year. Why do people pay so much attention to this issue? Because investment in this relevant industry accounts for a great proportion of GDP. To some extent, the demand situation of building industry represents the whole industry. It is very important for cement industries to explore how excess production capacity problem is formed, which is helpful for business managers to figure out new development direction.
 

 

   As everyone knows, Chinese economy keeps developing rapidly in recent 10 years. The annual GDP is near 9%. If you keep exploring deeply, you can find that majority of GDP is mainly from infrastructure construction. As a result, the great demand of cement brings about a phenomenon that many people prefer to relevant investment. Meanwhile, the number of cement rotary kiln manufactures increase greatly. Another reason is environment cost. So-called environment cost refers to the price will rise with the disposal of environmental pollution. In fact, many enterprises tend to sacrifice environment for high GDP, which will lead to lower price. If our country issues strict standards on environmental protection, some enterprises will definitely sifted out, including some unqualified rotary kiln enterprises.
  Of course, excess production capacity is a very complicated question. With proper consideration, enterprises can efficiently avoid this problem. Zhengzhou Taida Group, as a professional company which can manufacture various rotary kiln, hopes to provide you with new development directions with this article. If you are interested in our cement rotary kiln, you can call us at 0086-1839990967 or send email to info@tdaxy.com .