Taiwan-based Asia Cement Corp will in November travel to Guam to check the potential business opportunity generated by the relocation of a U.S. military base to cost US$6bn.
K.Y. Lee, president of Asia Cement, said his company has obtained orders of several million dollars from the military base relocation, which will span four to five years to offer Asia Cement several billion dollars of orders. The group to go to Guam will consist of Asia Cement’s subsidiaries, including Ya Tung Ready-Mixed Concrete Corp. and Ya Li Precast Prestressed Co.
Taiwan-based firms, including Asia Cement, as Taiwan Glass Corp. and Hocheng Corp. have already obtained US$60 million or about NT$1.9bn in orders from the U.S. military base relocation. Asia Cement vice president WK Chou says the project has attracted the attention of Asia Cement affiliates, with Ya Tung and Ya Li to set up production bases in Guam. Guam currently demands approximately 200,000tpa of cement, which will double with the relocation project once under way.
Cement is quoted in Guam for around US$100/t. Asia Cement currently exports cement to Singapore and Hong Kong for between US$37 and US$42/t; so supplying the Guam cement market will help raise gross profit margin effectively.