The Sino-French project, with an annual production capacity of 1.4 million tons of cement clinker, is also the largest dry rotary kiln production line in the area, according to its general contractor China Building Materials Tangshan Corp (CBMI).

This is the first turnkey project in China's building materials industry, and is expected to have a far-reaching effect on the construction of future cement plants.

CBMI General Manager Si Guochen foresaw rosy market prospects for the production line, which he claims is equipped with the world's most advanced technologies, and is noted for its environmental friendliness, fuel and electricity efficiency and high quality.

China's cement demand and supply reached a good balance at about 620 million tons last year but the demand for high-quality cement is unsatiated, he said.

Only about 80 million tons out of China's total production last year was of high quality, he said.

The French Lafarge -- the world's largest building materials producer, with sales of US$15 billion in 2000 and production of 150 million tons in 2001 -- invested 1.3 billion yuan (US$1.57 billion) in the project.

This is Lafarge's most important project in China, and serves as an excellent model for later investments in the country, said Dung Van Anh, executive vice-president of Lafarge China.

Dung said Lafarge is very positive about the market prospects of China's cement industry and is discussing several other similar projects.

Lafarge is expected to announce some new projects in China this year, as well as the expansion of the cement plant.

Dung said Lafarge is considering another production line in the plant because he believes the market for high-quality cement is growing rapidly in Sichuan, and there are no other large cement producers in the area.

Sichuan's demand for high-quality cement reached 6 million tons last year and is expected to grow more than 10 percent each year, said business insiders.

(China Daily February 4, 2002)