June 2, 2008—
For IFC, addressing climate change is a priority. A key part of our strategy includes investing in projects and cutting-edge technologies that help minimize environmental impact. This is critical for China, a country that faces serious challenges with pollution because of rapid industrialization.
An inspiring client is the Shanshui Cement Group, a leader in China's cement industry. IFC is investing $62.4 million to support the company's innovative energy-recycling technology that will improve its environmental performance. With this support, the company will implement new cement lines and waste heat recovery generators for self-power generation, as well as finance specific cement acquisitions. These technology upgrades will help improve production and reduce emissions.
IFC's Investments |
IFC has provided Shanshui Cement with two rounds of financing:
- $62.4 million in 2008 to support technology upgrades
- $57.7 million in 2005 to support an expansion
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A Shift toward Cleaner Technology
There is a major shift going on in China's cement industry, which has some 5,000 manufacturers that produce more than 45 percent of the world's supply. As larger, more technologically advanced players like Shanshui Cement acquire smaller companies, they will upgrade processes and shift from vertical shaft kilns, which are a considerable source of pollution, to the new, environmentally friendly suspension pre-heater technology. By 2012, companies will produce an estimated 450 million tons of cement using this new, cleaner technology—and market leaders like Shanshui Cement are driving this change.
As the second-largest cement producer in China, Shanshui Cement has an annual capacity of about 22 million tons. It operates five integrated cement plants, two clinker plants, and 11 cement grinding units in the Shandong and Tianjin provinces. The company is well positioned to take advantage of market opportunities, as the Chinese government is encouraging the consolidation of the local cement industry.
The company's far-reaching energy efficiency program includes using only new suspension pre-heater technology and—even more progressive—installing waste heat recovery generators on all kilns, with a capacity of 2,500 tons per day. The generators turn heat from the kilns into electricity, thereby reducing the need for coal or other fuel sources. This also reduces the company's energy expenses as well as greenhouse gas emissions. When complete, Shanshui Cement will stand out as an environmental standard bearer in China's massive cement sector.
For more information contact:
Carmen Powell
IFC Communications Officer
Global Manufacturing & Services
Phone: +1(202) 473-4982
E-mail:
cpowell@ifc.org 
