With a new round of economic increase of last year the demand of cement grew rapidly with the rise of real estate investment. However the bottleneck problems of coal, electric power and transportation force the government to implement macro-economic control so as to compress the size of fundamental investment. Therefore the demand of cement tobogganed. Since the conflict of coal, electric power and transportation has not been solved and the decrease of cement price, the rise of fuel cost result in the reduction of company profit. The competition became even fiercer. At present most of the large and mid-sized cement enterprises are in debt, which amounts to 70 %. These enterprises are in bad condition because of being stuck in debt. The poor paying off capability of the cement enterprises badly confined the development of China's cement industry.
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