As the inaugural year of the 15th Five-Year Plan period, 2026 sees the simultaneous implementation of multiple policies across the national ready-mixed concrete industry covering total capacity control, elimination of unlicensed plants, layout optimization and market order rectification. Local authorities strictly scrutinize approval for new mixing plants, shut down illegal unregulated stations and guide the orderly exit of backward production capacity. Coupled with stringent thresholds on environmental protection, taxation and product quality, the concrete mixing plant sector has entered a critical stage of in-depth capacity reshuffling, enabling systematic resolution of long-standing industrial problems including overcapacity, scattered layout and vicious competition.
At the source of capacity control, national and provincial authorities have issued rigid capacity restriction rules with prudent review and filing approval for new mixing plants. Zhejiang released the 15th Five-Year Plan for the ready-mixed concrete industry, specifying mixing plant layout aligned with territorial spatial planning and ecological control zones. In principle, approvals for new plants within urban built-up areas and ecological protection zones will no longer be granted, and a capacity replacement system applies to all new projects. Yuxi, Yunnan, directly stipulates that temporary mixing plants for highway and water conservancy projects can only produce concrete for self-use with no external sales; all equipment must be demolished upon project completion to prevent disguised permanent capacity expansion under the name of temporary stations. A nationwide unified rule requires all newly-built mixing plants to settle in green building materials industrial parks with a minimum annual capacity of 600,000 cubic meters per plant, halting numerous scattered small-scale proposed projects. The number of newly approved compliant mixing plants in 2026 dropped sharply by 67.3% year-on-year, curbing disorderly capacity expansion at the root.
Rectification of existing markets centers on "eradicating illegal plants and standardizing compliant ones", with nationwide campaigns to clear all unlicensed mixing stations launched across multiple regions. In the first half of 2026, key regions including the Pearl River Delta, Chengdu-Chongqing, Beijing-Tianjin-Hebei, Shandong and Henan carried out joint cross-departmental law enforcement. Joint inspection teams consisting of housing and urban-rural development, ecological environment, natural resources, market regulation and transportation authorities targeted illegal "black mixing plants" lacking professional ready-mixed concrete contracting qualifications, environmental impact assessment approvals, engaging in illegal land occupation, tax evasion and inadequate quality control. Rectification measures are decisive and forceful: illegal plants failing to self-demolish within deadlines face mandatory penalties including water and power cut-off, dismantling of production equipment, removal of raw materials and finished products, and land restoration. Construction, supervision and project owners purchasing illegal concrete are held accountable to cut off market demand for unregulated stations. More than 3,200 unlicensed illegal mixing plants were closed and demolished nationwide in the first half of the year alone, greatly cleaning up regional market environments.
Amid industrial overcapacity, rectification of disorderly low-price competition has been advanced simultaneously. The National Development and Reform Commission and State Administration for Market Regulation issued documents mandating cost surveys in the building materials sector, conducting interviews and issuing warnings to enterprises dumping concrete at prices far below reasonable production costs. Industry associations took the lead in establishing regional benchmark cost pricing mechanisms for ready-mixed concrete. Previously, many micro and small enterprises seized orders at predatory low prices by evading environmental operation fees, skipping compliant input invoicing and simplifying quality testing, squeezing profit margins of law-abiding competitors. Such unfair competition models are no longer viable under triple constraints of strict taxation, mandatory environmental renovation and traceable product quality. After market prices returned to a reasonable range, large compliant mixing plants gained clear preference in bidding for government projects, large-scale housing construction and key infrastructure projects by virtue of stable product quality, green certifications and digital management, leading to continuous concentration of market share among leading enterprises.
Driven by policy pressure, four clear transformation paths have emerged for existing mixing plants. First, complete green renovation to meet environmental standards including enclosed workshops, dust removal, wastewater circulation and noise reduction, and apply for green production certification. Second, build digital systems with production data connected to supervision platforms and complete ledgers covering quality, energy consumption and carbon footprints. Third, vertically extend industrial chains by supporting compliant sand and gravel aggregate production lines and construction waste recycling workshops to mitigate risks of raw material price fluctuations. Fourth, upgrade product mix through R&D of high-strength concrete, pervious concrete and special mortars for precast components to enter the new industrialized construction track. Meanwhile, replacement of mixing transport vehicles with new energy models is accelerated. Zhejiang encourages a 5% annual increase in the local fleet of electric concrete tankers to further reduce plant carbon emissions and operation costs.
Industrial analysis institutions forecast that 2026–2027 will mark the critical two years for capacity clearance in the mixing plant industry. Overlapping policies will continuously phase out extensive backward production capacity, ultimately forming a brand-new industrial pattern featuring "industrial park agglomeration, moderate capacity, green intelligence and standardized operation". For existing mixing plant operators, only by proactively adapting to policy changes, addressing deficiencies in environmental compliance, taxation, digitalization and quality control, and enhancing risk resistance through integrated industrial chains can enterprises gain a firm foothold amid massive industrial reshuffling and achieve stable long-term development.
