Asia Cement reports new first-half high

Asia Cement reports new first-half high
Published: 05 September 2011

Benefiting from cement price hikes, Asia Cement Corp recorded a new high of CNY664m (US$104m)
in net profits from its operations in China in the first half of this year, for a staggering growth of 369% from a year ago.

The company is confident of earning more in the second half of the year through next year, mainly because demand for cement will further grow in China due to the 12th Five-year Development Plan, which has been put into practice to improve agricultural infrastructure and transportation in rural and urban regions nationwide.

The company added that Chinese cement makers’ supply reduction resulting from the Chinese government’s intention to upgrade traditional manufacturing industries to reduce energy consumption and carbon emission in China will benefit Taiwanese cement suppliers in the near future.

In the meantime, Asia Cement is also optimistic about market prospects in Taiwan, as the local construction industry has been picking up amid continued implementation of infrastructure construction projects and increased private buildings. The company has projected cement consumption on the island will increase about 10% in the second half of this year compared to the first half.