(Yicai Global) Aug. 18 -- Tangshan Jidong Cement Co. [SHE:000401] stands to benefit from the Xiongan New Area's establishment.

"For now, one thing is sure -- demand for cement will be enormous in the construction of the Xiongan New Area," Shanghai Securities News quoted Yu Jiuzhou, the company's general manager, as saying. "Conservatively speaking, it will be 3 to 5 million tons, and even 10 million tons if we are optimistic."

In the first half of this year, the Environmental Protection Inspectorate of China published a list of enterprises in the country that should eliminate their use of outdated processes and equipment. It included 19 cement clinker companies with 4.33 million tons of capacity and 70 cement grinding groups with 20.587 million tons of capacity. The removal of outdated capacity in the industry could push up the price of cement, an analysis from Sinolink Securities said.

Inspections for the second half of the year have begun. Many cement makers in Sichuan province were ordered to cut output or shut down, and cement prices rose USD4.5 (CNY30) to CNY50 per ton there, Sinolink Securities said. In the second half, inspectors are expected to carry out 25 rounds of environmental protection probes in the Beijing-Tianjin-Hebei region.

A group led by Beijing Party Secretary Cai Qi inspected the planning and development of the Xiongan New Area yesterday and signed a cooperation agreement on joint construction of the area with the Hebei Provincial Government. The next step is to seek support from the State to strengthen construction of inter-city railways, highways and other transport infrastructure, ensuring direct and smooth links between the Xiongan New Area and Beijing, said Hebei Provincial Party Committee Secretary Zhao Kezhi.