Taiwan Cement’s subsidiary in China said it registered HK$932m (US$119.6m) in earnings in the first half, up 6.11 per cent YoY. Meanwhile, Asia Cement’s subsidiary, Asia Cement (China) Holding registered CNY665m (US$104m), in first-half earnings, up 369% from a year earlier.
Asia Cement chairman Douglas Hsu said China’s cement industry looks promising despite credit-squeezing policy, increased production costs and electricity shortage.
Asia Cement China CEO, TH Chang, said the company will adopt mergers and acquisitions to boost market share and take advantage of massive opportunities in China’s cement market, towards which the company will speed up the construction of Yadong Line No. 5 and No. 6 kilns in Jiangxi province.
TCC International attributed robust growth in sales in the first half to acquiring the cement unit of China-based Prosperity International Holding, and registered over HK$700m in earnings in the second quarter, triple the HK$220m in the preceding quarter.
Higher product prices also contributed to TCC International’s handsome first half earnings, with average prices growing over 30% YoY in the first half.
Asia Cement (China) said it launched mass production in several new plants in Sichuan, Hubei, Hunan and Jiangxi provinces last year to raise capacity substantially.