Taiwan Cement to Acquire Chinese Cement Company
To achieve annual output of 55Mt of cement in China this year, Taiwan Cement Corp. has decided to acquire a 100% stake in Kaili Shiu On Co. from Shui On Construction and Materials Ltd.
Taiwan Cement’s subsidiary Upper Value Investments Ltd. announced the acquisition valued at HKD218m a few weeks ago, showing its parent company’s ambition to reinforce its footholds in China’s southern and southwestern regions.
Taiwan Cement indicated that Kaili Shiu On is located in Guizhou Province, southwestern China, where business potential is considerable as local underdeveloped infrastructure still has room to improve. Accordingly, local market demand for cement will keep growing in the coming few years, and Kaili Shiu On, which has maximum output of 1Mt of cement now, is expected to secure Taiwan Cement a more solid basis of proliferating there. Moreover, through the buyout, Taiwan Cement will drive up its annual output of cement to 6Mt to consolidate its lead in Guizhon this year.
Taiwan Cement has also been in talk with two to three Chinese cement makers for acquisitions, which will hopefully be materialized to add 6Mt of cement to the company’s output in China this year.
Published under Cement News
