The Ministry of Housing and Urban-Rural Development will expand the building materials to the countryside and pilot energy-saving products are expected to receive 100 billion subsidies.

Abstract In 2011, the Ministry of Housing and Urban-Rural Development will expand the pilot scope of building materials to the countryside, which will create a new driving force for the building materials industry. On the 20th, the reporter was informed that the Ministry of Housing and Urban-Rural Department has issued a notice of the main points of work in 2011. One of its important contents is to expand the pilot project of building materials to the countryside and open...

In 2011 , the Ministry of Housing and Urban-Rural Development will expand the pilot scope of building materials to the countryside, which will create a new driving force for the building materials industry. On the 20th, the reporter was informed that the Ministry of Housing and Urban-Rural Development Department has issued a notice of the main points of work in 2011. One of its important contents is to expand the pilot project of building materials to the countryside and carry out pilot projects to promote the use of energy-saving building materials. In this regard, the industry's authoritative experts said that although the building materials to the countryside is still in the pilot stage, but the market space is huge in the future.

In October last year, the Ministry of Housing and Construction and other six ministries issued the "Notice on Promoting the Pilot Project of Promoting Building Materials to the Countryside" to determine the pilot provinces in Shandong and Ningxia as building materials to the countryside, to promote cement products to the countryside and explore various types of building materials. The specific measures, operation methods and working modes of the township have opened the prelude to building materials to the countryside. At present, this year, building materials to the countryside is expected to be spread out on a larger scale.  

According to the notice of the 2011 work points issued by the Ministry of Housing and Urban-Rural Development, this year the Ministry of Housing and Urban-Rural Development will “join the relevant ministries and commissions to guide the implementation of the pilot project of building materials to the countryside, organize pilot provinces and districts to sum up experience and evaluate the effect of the policy.” The pilot area of ​​going to the countryside. Piloting the subsidy for promoting the use of energy-saving building materials."

“This shows that the government's attitude of continuing to promote the work of building materials to the countryside is expected to stimulate the optimistic expectations of the market for demand growth of related products,” said an industry analyst.

In this regard, President of China Building Materials Circulation Association Meng Guoqiang analysts pointed out that building materials to the countryside as a symbol of China's future economic development hot spots in the countryside, in the rural market, the best hope for expanding domestic demand and promoting consumption in rural areas.

However, the reporter noted that the current building materials to the countryside is still in the pilot stage, the relevant policies are not in place, and the financial subsidies are limited to a few pilot areas. It still takes time to form a new driving force for the building materials industry.

Wang Fujiang, president of Shandong Building Materials Industry Association, told the media that after the notice of the Ministry of Housing and Urban-Rural Development was issued last year, the Shandong Provincial Department of Housing and Construction organized the implementation of the pilot project to promote the building materials to the countryside, clarifying the scope of the pilot, targets, targets, annual planning tasks and break down. For the implementation of building materials subsidies, specific operational measures such as subsidy payment are also formulated. The current implementation plan is basically completed and is awaiting final confirmation by the provincial government. According to reports, Shandong's initial plan for building materials to the countryside will be fully promoted in 17 regions, and each city will select a county to conduct pilot projects.

However, the amount of state financial subsidies for building materials to the countryside has not yet been determined, making it necessary for construction materials to “go to the countryside” for a period of time.

However, industry analysts are still full of expectations for building materials to the countryside.

An analysis report of Huatai United Securities pointed out that according to the preliminary subsidy program disclosed in the China Cement Association's "Expanding Building Materials to the Countryside Policy and Implementation Recommendations" last year, the financial subsidy funds that building materials can apply for in the countryside amounted to 100 billion yuan for a period of three years. Corresponding to the subsidy amount of 30 billion to 35 billion yuan per year.

“According to the cost of 400 yuan per square meter of building materials for rural houses, the net construction area will increase by 75 million to 87 million square meters. Considering the leverage of subsidies to start consumption, we are neutral according to the situation of 2 times and 3 times leverage multiples. And optimistically estimate that the net increase in construction area corresponds to 150 million to 170 million square meters and 220 million to 260 million square meters, and rural residential houses use about 0.1 tons of cement per square meter. The increase in cement demand brought by building materials to the countryside For 15 million to 17 million tons and 22 million to 26 million tons, if the cement production in 2010 is 1.88 billion tons, under the optimistic assumption, building materials to the countryside will contribute 1.2 to 1.4 percentage points of cement demand in 2011. " The report analyzes. It should be pointed out that with the expansion of the pilot scope, in addition to cement pilot enterprises, glass, ceramics, paints, flooring, hardware, furniture, lighting and other industries can become beneficiaries of building materials to the countryside.  

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