Taiwan producers report strong first-quarter China results
Thanks to a cement price hike in China, Taiwan’s leading cement producers which have invested in the country, including Taiwan Cement Corp, Asia Cement Corp, Chia Hsin Cement Corp and Goldsun Development & Construction Co, all reported strong sales and earnings in the first quarter of this year.
Taiwan Cement’s subsidiary in China—TCC International Holding Limited is expected to see first-quarter earnings exceed CNY280m (US$42.9m), compared to a loss of CNY20m in the same period of 2010.
TCC shipped over 3Mt of cement in March, to achieve an historic high. The largest Taiwanese-invested cement producer in China, the company’s capacity is 46Mta.
Asia Cement’s subsidiary in China – Asia Cement (China) Holdings Corp – posted CNY67m in after-tax earnings in the first quarter of last year, with its earnings expected to exceed CNY237m in the first quarter of this year.
Over the past few weeks, cement prices quoted in eastern and southern China have been rising. Taiwan Cement predicts cement prices in China will rise 10% in the second quarter of this year.
Chia Hsin forecasts cement prices quoted in Jiangsu province will rise between CNY10 and CNY20/t by the end of this month.
Institutional investors estimates Chia Hsin’s subsidiary in China will be able to post CNY20m, or NT$89 million, in earnings in the first quarter of this year.
Goldsun’s subsidiary in China saw sales of cement and readymixed concrete grow 88% and 58% YoY, respectively in the first quarter of this year. Institutional investors predict the company will very likely see earnings from investments in China exceed NT$700m this year, for a historic high record.
Published under Cement News
