According to the regional division, in the second quarter of 2010, the mechanical cement drainage pipe industry in Xi'an in the eastern, central and western regions of China has developed, but each has its own characteristics: the mechanical cement drainage pipe industry in the eastern region has maintained a good growth trend, and the market demand has recovered; Since most of the new dry-process kiln projects in the central region were put into operation in the first half of 2010, the industry development was relatively stable.
From a regional perspective, the focus of economic growth in the mechanical cement drainage industry has been constantly shifted to the west. In 2009, the main areas where the machine-made cement pipe industry led to rapid profit growth were the areas where the central and western regions joined, such as Shaanxi, Sichuan, Guizhou and other provinces; In the first half of 2010, as the demand for cement in the western region continued to be strong and the profit increased, the economic growth region shifted to the western provinces and regions of Qinghai, Gansu, Xinjiang, etc. We believe that the rapid development of the mechanical cement pipe industry in the western region is closely related to the country's economic construction.
The cement pipe manufacturing enterprises are facing a rare development opportunity. The recent factors they are facing (the industrial policy is weak and the cement industry is implementing new standards) and long-term factors (the "South-to-North Water Transfer" is about to start, and the western development continues to advance) have improved their market environment and encouraged the industry. Although the management level and geographical location of cement pipe manufacturing enterprises are quite different, it can be expected that the performance of large enterprises that operate well and produce high-grade products will grow significantly in the future, especially the large enterprises in the west will benefit significantly, and will see significant results in the next few years.