A major investment plan worth RMB 5 billion (approximately USD 700 million) reveals Conch Cement's strategic focus for 2022 and highlights the company's ambition to expand into the new energy sector.
On March 8, Conch Cement announced that it would invest RMB 5 billion in photovoltaic power generation, energy storage projects, and other renewable energy initiatives. The company aims to achieve full photovoltaic coverage across all of its production facilities. By the end of 2022, installed solar power capacity is expected to reach 1 GW, with annual electricity generation exceeding 1 billion kWh.
According to Conch Cement, the investment plan is an important part of its 14th Five-Year Development Strategy. The company had already taken significant steps toward this goal in 2021, when it acquired 100% equity in Anhui Conch New Energy Co., Ltd. for RMB 443 million, marking a key milestone in its green transformation journey.
Why is Conch Cement making such a significant move into renewable energy? The answer is straightforward: electricity.
The company noted that Anhui Conch New Energy's photovoltaic power generation business can provide reliable electricity support for cement production, strengthening its core operations while promoting business diversification. At the same time, renewable energy investments align with China's carbon peak and carbon neutrality goals, supporting both corporate sustainability objectives and the broader transformation of the cement industry.
In January, Anhui Conch New Energy increased its registered capital from RMB 500 million to RMB 5 billion, further demonstrating the company's commitment to renewable energy development.
Conch Cement reported that its photovoltaic capacity had already reached 180 MW and was expected to increase to 700 MW in the following year. The company plans to achieve full solar deployment across all production plants as quickly as possible, continuously increase the proportion of renewable energy in its energy mix, develop energy storage projects in regions with significant peak-to-valley electricity price differences, and explore wind power projects where conditions permit.
Conch Cement's RMB 5 billion investment plan continues the company's broader green transformation strategy.
In October 2021, the company also committed RMB 1.6 billion as a limited partner in the China National Building Materials New Materials Fund, alongside other institutional investors. According to the company, these investments not only support China's dual-carbon strategy but also help establish new drivers of long-term business growth.
The achievements of Conch Group, the company's parent organization, demonstrate the potential benefits of this strategy. To date, the Group has developed 19 photovoltaic power stations, 3 energy storage power stations, and 1 wind power project. In 2021 alone, these facilities generated 163 million kWh of solar electricity and delivered 24.64 million kWh of energy storage output.
Beyond renewable energy, Conch Group has actively promoted circular economy initiatives through the co-processing of municipal solid waste, industrial waste, and hazardous waste in cement kilns.
The Group has implemented 167 environmental protection projects across more than 20 provinces in China, creating annual treatment capacities exceeding 17 million tons of municipal waste and more than 9 million tons of industrial and hazardous waste.
According to data released by the Anhui Provincial State-owned Assets Supervision and Administration Commission (SASAC), Conch Group completed RMB 18.7 billion in investments in 2021. More than 30% of that investment was directed toward emerging green industries, which are rapidly becoming one of the key pillars supporting the Group's next phase of growth and development.
Through its continued investment in renewable energy, energy storage, circular economy initiatives, and sustainable industrial development, Conch Cement is positioning itself as a leader in the green transformation of China's building materials industry.