Thanks to recovery in demand, Taiwan’s leading cement producers, including Taiwan Cement Corp, Asia Cement Corp.and Goldsun Development & Construction Co, are enjoying strong performances in China.
After experiencing several months of lower output, Taiwan’s leading cement firms investing in China have resumed normal deliveries since the beginning of March.
Taiwan Cement said it has fully opened production capacity in the southern China provinces of Guangdong and Guangxi. Goldsun said it is able to ship 70% of total output. Asia Cement has begun making profits in China starting February.
Taiwan Cement vice president Huang Chien-chiang said China has resumed construction projects since the beginning of March, leading to booming demand for cement.
Taiwan Cement’s two production bases in Yingde of Guangdong Province and Guigang of Guangxi Province have raised daily delivery by 25% to 25,000t from past 20,000t.
Goldsun’s cement plant in Longyan of Fujian Province currently can ship 4,000tpd of cement, meeting 66% of normal shipments. The company anticipated it would soon see shipments recover to the normal level of 6,000tpd.
Taking central China market as hinterland, Asia Cement has seen shipments rebound to normal level as early as in February, a month earlier than expected. Thanks to the increase in shipments, Asia has seen conspicuous growth in earnings since February.
The three leading cement firms won’t raise product prices in the short term as they have seen increase in gross profit margin. Taiwan Cement said it currently has a 20% gross profit margin in China’s operations.