This is an era of rapid transformation and upgrading for the traditional sand-and-gravel aggregate industry—a time when all sectors are vying for dominance. “ Sand yard ” In this era, this is a traditional sand and gravel aggregate enterprise. “ Big Shuffle ” the era. Accurately forecasting the trends in the sand and gravel aggregate industry, as well as the adoption of new concepts, new business models, new technologies, and new equipment, along with pioneering, innovating, and collaborating under the new normal and supply-side structural reform, will determine whether we can... “ Sand yard ” Middle being “ Beheaded under the horse. ”！

　　Today, sand and gravel aggregates are no longer the traditional workshops found right on your doorstep. If you want to make a name for yourself both at home and abroad, you’ll need to... “ Sand yard ” To gain a firm foothold and become a success in the sand and gravel aggregate industry, you must learn and adopt advanced management and business models, apply the latest technologies, continuously explore and innovate, and strengthen collaboration—only then can you achieve new growth.

　　So, against the backdrop of supply-side structural reform, where exactly does China’s sand and gravel aggregate industry stand? And how can it achieve transformation and upgrading? Recently, a reporter from China Mining News conducted an exclusive interview with Hu Youyi, President of the China Sand and Gravel Association.

　　 China Mining News: What is the current situation facing China’s sand and gravel aggregate industry?  

　　 Hu Youyi Currently, China’s sand and gravel aggregate industry is facing a period of excellent development opportunities. First, at the national level, there is an unprecedented degree of attention being paid to this sector. 2015 Year 9 Moon 1 On [date], the Ministry of Industry and Information Technology and the Ministry of Housing and Urban-Rural Development, in their notice on issuing the “Action Plan for Promoting the Production and Application of Green Building Materials,” pointed out that: “ Accelerate the industrialization, standardization, and greening of mechanism sand and gravel. ”， “ Support the use of tailings and industrial solid wastes to produce manufactured sand and gravel. ”， “ Establish a new mechanism for producing sand and gravel by leveraging resources such as tailings and construction waste. ” This is the first time that documents from the Ministry of Industry and Information Technology and the Ministry of Construction have mentioned sand and gravel aggregates.

　　2016 Year 5 Moon 18 On [date], the General Office of the State Council issued the "Guiding Opinions on Promoting Stable Growth, Adjusting Structure, and Enhancing Efficiency in the Building Materials Industry." ( National Office Document [ 2016 ] 34 Number ) , requirements “ Accelerate the development of sand and gravel aggregates, actively utilize solid wastes such as tailings, waste rock, and construction waste to replace natural resources, and develop manufactured sand and gravel products. ” This is also the first time that a State Council document has mentioned sand and gravel aggregates.

　　From an external perspective, China’s sand and gravel aggregate industry—and its related equipment sector—are currently among the industries with relatively high profit margins. , So businesses from all sectors have entered in large numbers. In “ 13th Five-Year Plan ” Against the backdrop of national planning, the country continues to roll out large-scale infrastructure construction plans, generating strong market demand. As a result, the sand and gravel aggregate industry is emerging as a new, massive market, with multiple sectors now stepping onto this broad platform. Companies from upstream and downstream segments of the building materials industry—such as cement and concrete manufacturers—are entering the market; enterprises from industries including non-ferrous metals, non-metallic minerals, water conservancy, hydropower, China Construction, China National Nuclear Corporation, China Communications Construction, and China Railway Construction are also joining in; mechanical engineering firms specializing in construction machinery and mining equipment, as well as mining blasting companies, are making their presence felt; and even some consulting and design firms are starting to enter the fray. Since the traditional, closed sand and gravel value chain has been opened up, a new system is taking shape, and the industry’s transformation and upgrading will create entirely new opportunities. At present, new enterprises, capital, and advanced technologies are penetrating the sand and gravel aggregate industry across the board, ushering it into a brand-new era of development. The time required for the sand and gravel aggregate industry to undergo transformation and upgrading will be significantly shorter than that needed by the cement industry—and won’t take much longer. 10 Over the past several years, as new large-scale mechanism sand and gravel aggregate production lines continue to be built, the government has steadily shut down and phased out outdated sand-mining enterprises. A large number of newly established companies have entered this industrial chain, accelerating industry consolidation. This is rapidly transforming the traditional commercial ecosystem and market rules for sand and gravel aggregates. The industry will gradually shift from its current state of commercial fervor toward a period of restructuring, moving from the “small-mine era” into a “large-mine era.” In the coming years, a completely new landscape will emerge, ultimately leading to a development trend characterized by large enterprises, corporate groupings, and healthy, standardized practices.

　　From an internal perspective, China is a major producer of sand and gravel aggregates, yet the industrialization of this sector has just begun, and there’s still a long way to go before China becomes a global powerhouse in sand and gravel aggregates. The equipment used for crushing and screening ores was originally adapted from other mining machinery; genuine R&D and manufacturing of specialized ore-processing equipment are only now getting underway. Similarly, dust collection and water treatment equipment have also been borrowed from other industries, and they face the same underlying challenges.

　　Crushing equipment touches upon numerous fields, including materials, mechanical engineering, and power systems. From initial imitation to technological innovation and ultimately achieving genuine rise, there’s still a long way to go. In the past, sand and gravel aggregates weren’t included as an industrial sector in national research, statistical, or other related systems, and the country hadn’t established dedicated institutions for research and development, quality inspection, and testing. As an emerging industrial sector, China still lacks the best engineers and top-tier scientists entering this field. We must rely on our own strength to build comprehensive systems for R&D, design, and quality inspection. Innovation in the sand and gravel aggregate industry must be all-encompassing; we need to break away from merely following others and significantly enhance our capacity for original innovation.

　　In the country “ 13th Five-Year Plan ” Against the backdrop of overall planning, the market demand for sand and gravel aggregate equipment is substantial, offering significant room for growth. Traditional extraction methods will be rapidly phased out. In the coming years, technological advancements in the sand and gravel aggregate industry will far outpace those in other construction materials industries, and the pace of transformation, upgrading, innovative development, and integration will also be much faster. Governments at all levels, as well as sand and gravel aggregate and equipment enterprises, must respond comprehensively to seize new opportunities for development.

　　China Mining News: Different industries seem as distant as mountains apart. Yet, China’s sand and gravel aggregate industry has become a hub connecting all sectors. “ Contending for the Central Plains ” In this field, what are the reasons and methods behind the various sectors’ rush to enter the sand and gravel aggregate industry?

　　Hu Youyi: Currently, the global and Chinese economies are experiencing slower growth, markets are declining, and most industries are facing overcapacity. Localities are all... “ Reduce overcapacity ” ; Profits have declined or even turned into losses in most industries, and accounts receivable remain stubbornly high in some sectors. Natural sand and gravel resources are subject to increasingly stringent extraction restrictions, environmental protection measures are being stepped up, and the government continues to shut down outdated, small-scale sand-and-gravel enterprises. Meanwhile, infrastructure construction projects are on the rise, driving strong market demand and causing price hikes in certain regions. Looking around, every industry is crowded with participants—there’s hardly any room left for newcomers on the playing field. Yet only the industrialization of sand and gravel aggregates is rapidly advancing, brimming with vitality and thus attracting... “ Countless heroes have bent their backs in competition. ”。

　　Based on the current situation, there are several ways for various sectors to enter: one is cement. + Joint ventures among sand-and-gravel enterprises represent the most effective approach to leveraging the successful operational models of the cement industry while capitalizing on the unique characteristics of the sand-and-gravel aggregate sector. Second, direct entry by cement companies: While these companies can draw on their proven operational expertise and enjoy advantages in quarrying, they often lack experience in the production of sand-and-gravel aggregates, which may lead to certain challenges. Third, entry by external enterprises such as hydropower firms: Companies from the hydropower and water conservancy sectors possess valuable experience in producing sand-and-gravel aggregates for hydroelectric projects. However, it’s important to note that the sand-and-gravel aggregates used in hydropower projects differ from those employed in other infrastructure construction projects. Fourth, entry of external capital: The infusion of external capital into sand-and-gravel aggregate enterprises offers certain advantages; however, it is crucial to strengthen collaboration with these enterprises.

　　 China Mining News: What is the current market demand for sand, gravel, and aggregate as well as related equipment in China?  

　　 Hu Youyi : Global production of sand and gravel aggregates is approximately 400 Hundred million tons. China uses approximately... tons of sand and gravel aggregates for concrete each year. 150 hundreds of millions of tons—plus other uses such as asphalt concrete and water treatment—amounting to roughly per year. 200 100 million tons, accounting for the global total of 50% Industry output value 1 Over 100 billion yuan, with transportation costs amounting to tens of millions of yuan, accounting for... GDP of the 1/68 , is a massive industry.

　　At 2015 Among the infrastructure projects approved by the NDRC since [year], railway and urban rail transit projects account for a large share, with their investment amounts respectively accounting for [percentage] of the planned investment amounts. 46% and 33% , the investment in highway projects accounts for approximately 17% , the remaining projects such as ports and airports account for approximately 4%。2015 Approved since the year 100 Multiple transportation and urban rail transit projects or construction plans, with a total investment amount. 2 Trillions of yuan. The future. 3 This year, major infrastructure construction projects in transportation include: 303 A project with a total investment reaching 4.7 Trillion yuan, of which 86 The investment in this railway project has reached 2 Trillion yuan, 103 A subway project investment 1.6 Trillion yuan, 54 Investment in a highway project 5800 100 million yuan, 50 Airport project investment 4600 100 million yuan, 10 Investment in a port project 600 hundreds of millions of yuan—these will undoubtedly increase the demand for sand and gravel aggregates.

　　Meanwhile, “ The Belt and Road ” There is high demand from countries along the route. “ The Belt and Road ” The core of this initiative lies in infrastructure development and connectivity, which will generate substantial demand for infrastructure construction, expand cooperation opportunities among countries along the route, accelerate international capacity cooperation, and create a huge market for sand, gravel, and aggregate as well as crushing equipment.

　　In terms of market demand for crushing equipment, China’s sand and gravel aggregate industry still lags significantly behind developed countries in Europe and the U.S. in terms of overall equipment levels, technological sophistication, and environmental protection measures. At the national level... “ 13th Five-Year Plan ” Against the backdrop of vigorous efforts to promote industrial transformation and upgrading as well as the robust development of energy-saving and environmentally friendly industries, the market for mining and sand-and-gravel aggregate equipment has tremendous room for growth. The promulgation of a series of policies—including the country’s new Environmental Protection Law, the Action Plan for Green Building Materials Production and Application, the General Office of the State Council’s Guiding Opinions on Promoting Stable Growth, Structural Adjustment, and Enhanced Efficiency in the Building Materials Industry, and the supply-side structural reform—has placed higher demands on the transformation and upgrading of the traditional sand-and-gravel aggregate industry. Localities will gradually consolidate stone-mining resources, phase out outdated production lines, and require enterprises that fail to meet standards to upgrade and retrofit their equipment, building high-performance, low-energy-consumption, and environmentally friendly production lines.

　　 China Mining News: What are the paths for innovation and development in China’s sand and gravel aggregate industry and its enterprises?  

　　 Hu Youyi China’s sand and gravel aggregate industry needs to achieve new development through six transformations and cross-sector integration.

　　Business model transformation: In the face of the government’s ongoing elimination of outdated small enterprises, it is necessary to join forces and form large conglomerates, extend the industrial chain, and strengthen our competitive edge.

　　Management model transformation: shifting from extensive management to refined management, and adopting management practices aligned with modern enterprises.

　　Regional Scope Transformation: Facing “ New-type urbanization ” and “ The Belt and Road ” In implementing the strategy, we need to shift from small regional markets to larger regional markets, from larger regional markets to national and even global markets, and from large- and medium-sized urban markets to township markets.

　　Transformation of Production Methods: The traditional production model will be rapidly phased out, and enterprises must transition to industrialized and modernized production methods. They should select an appropriate timing for this transition based on their own specific circumstances.

　　Product Quality Transformation: The core of supply-side structural reform is quality. Currently, the quality of mechanism sand and gravel aggregates varies widely. To enhance product quality, we must focus on specialization and excellence.

　　Environmental Transformation Measures: Remediate the mining area’s environment, strengthen dust collection and wastewater treatment and reuse, build green mines and harmonious mining communities, and foster amicable relations with local governments and mining community residents to share benefits jointly.

　　Transformation and upgrading is not a matter of whether we want to or not—it’s simply a necessity if we don’t want to be left behind. Once the phase of rapid quantitative expansion has passed, the industry will enter a period of adjustment and restructuring. “ Big Shuffle ” At this stage, enterprises with weaker competitiveness will be eliminated. Only by undergoing the six transformations mentioned above can enterprises successfully shift from low-end to mid- and high-end markets and thereby better ensure their survival and development.

　　Cross-industry resource integration: Currently, the pace of consolidation in the sand and gravel aggregate industry is accelerating, and a completely new landscape will emerge in the coming years. Deep integration of cross-industry resources is an inevitable trend for the future. While resource integration within the same industry typically occurs within the industry itself, future competition will no longer be confined to the industry alone. Resource integration means identifying society’s development trends—and trends are like a horse. If you chase behind the horse, you’ll never catch up. Only by riding atop the horse can you run as fast as it does.

　　Innovation in sand and gravel aggregate and equipment enterprises should highlight the following aspects: First, adjust their development strategies and business models. Most sand and gravel aggregate enterprises still adhere to traditional management philosophies and business models, with their development strategies anchored in rapid economic growth and the conventional sand and gravel aggregate industry. However, both the external and internal environments facing these enterprises—and the ways they deliver products or services and generate commercial profits—have undergone significant changes. Therefore, enterprises must adapt to the new normal, the supply-side structural reform, and the characteristics of the sand and gravel aggregate industry entering a “large-scale mining” era. They need to implement the new development philosophy, which entails transformations in a range of thinking patterns, behavioral approaches, and working methods, as well as adjustments to various work relationships, social relationships, and interest alignments.

　　Second, innovation in sand and gravel aggregate equipment. The production of sand and gravel aggregates is a process-intensive undertaking—a systematic integration of a series of equipment and technologies—manufactured through a sequence of operations on the production line. Technological advancements in key stages can bring about a revolution in the entire production process. We need to put more effort into developing new processes, new technologies, larger-scale equipment, and customized solutions, thereby enhancing equipment performance and incorporating intelligent monitoring, environmental monitoring, and mobile phone connectivity. APP