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Laos Cement Company successfully completed product structure

Jiangsu lvssn cement production line business unit analyst Megan pointed out that with the successive launch of a number of cement plants and the influx of low-cost cement from Thailand and Vietnam after the integration of ASEAN trade, the Laos cement market has been overcapacity. In response to the increasingly fierce market competition, Laos Cement Industry Co., Ltd. Proactively plan ahead and grasp the pulse of the market. After more than two years of hard work, we have successfully completed the product structure adjustment. In 2018, we continued to stabilize the top spot in the Lao cement market.

Laos Cement Industry Co., Ltd., the first cement company in Laos with an annual output of one million tons, is also the Laos cement company with the best brand reputation and the largest sales volume. The company's products have always dominated the market in the past ten years. However, in the face of a harsh market, how to maintain market share and win this battle has become an urgent need to overcome the difficulties faced by electric construction workers.

Before 2016, in terms of product types, Laos cement market only has composite Portland cement 32.5 and ordinary Portland cement 52.5 two grades of cement, namely the so-called green bag cement and red bag cement on the market, and the product structure is relatively simple. Customers have no choice but to do this. In terms of market share, the civilian market, that is, bagged cement, has always dominated. The company's average annual data shows that bagged cement accounts for about 85% of the company's cement sales, and the project uses only about 15% of bulk cement.

Laos has a population of less than 7 million. After years of construction, the civilian market has gradually shrunk. The shrinking of the civilian market is bound to seriously affect the company's sales. In terms of the engineering market, Laos has always been known as a “small country and a big market”. Especially after the introduction of the “One Belt, One Road” initiative by the Chinese government, a large number of large-scale projects are moving forward intensively. In response to market changes and information, after analyzing and researching, the cement company believes that at a certain stage in the future, the cement consumption of Laos project will increase significantly, and the cement civilian market will change significantly. The company's cement sales and production must be Following the changes in the market, the sales strategy of “taking engineering projects as the starting point” was put forward, and the production policy of “no one has me, no one has me”.

In terms of specific implementation, at the end of 2015, the production technicians started to develop ordinary silicate 42.5 cement according to the information provided by the sales staff that “the Laos cement market product structure is single and the construction enterprise hopes to replace 52.5 cement with 42.5 cement”. During the month of commissioning, the raw material ratio has been continuously optimized, and the product quality has become increasingly stable. The product was launched to the market in early 2016 and became the first company in Laos to have 42.5 cement products. Once the product was launched, it was immediately welcomed by construction companies. The company has also signed cement supply orders for the application of waste heat power generation project,Red Lion Sadi Tower Cement Plant Project, Dongsahong Hydropower Project, Nanxinben Hydropower Station, Sun Paper Factory and other projects for the future. 42.5 The extensive application of cement has accumulated good results.

On the basis of the successful development of ordinary 42.5 cement production line, in response to the upcoming construction of the Lao-China railway project, the company started the research and development of 42.5 dry cement production process for railway. After nearly half a year of hard work, the 42.5 cement core equipment research and development for the Lao-China railway project was also successful. At the end of 2016, the cement company became the only company with 42.5 cement production and application performance, and the only company with technical indicators meeting the railway cement standards. It won a certain extra point for the company, made up for the disadvantage of the transportation distance, and provided strong support for the final bid of the multiple tenders of the Laos-China railway project.

On this basis, the company has also carried out research and development of backup products such as road cement, wear-resistant cement, high-strength cement and sulfate-resistant cement according to the characteristics of the Lao project, and they have all succeeded.

After more than two years of careful construction and continuous adjustment, the cement company can now produce cement bulk and bagged products with excellent quality and stable 32.5, 42.5, 52.5, etc., and also can produce road cement, wear-resistant cement, and sulfuric acid resistant. Salt cement, etc., the product structure has changed from a single one to a variety, providing customers with more opportunities to choose cement products.42.5 Cement sales have increased from zero to 50% of total sales, accounting for half of the company's cement sales. In 2018, the supply of bulk cement in the project has also accounted for 60% of the total cement sales. The variety of products and the adjustment of structure directly bring about the enhancement of competitiveness and the increase of sales volume. In the case of severe overcapacity and increasingly fierce competition, the sales volume of cement companies will be against the trend in 2017 and 2018. It still maintained a certain degree of growth, and cement sales in 2018 hit a record high.

Reform for survival, reform for development. The cement company keeps pace with the market pace and melody. Through the successful adjustment of the product structure, it has created new and stronger market competitiveness for the company, injected new impetus into the enterprise, and brought new products to the old factory for more than 10 years. Vitality.

The above is a report by an analyst from the cement production line business department of jiangsu lvsen company.
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