Taiwan Cement Corporation, Taiwan’s leading producer of cement, recently predicted substantial sales growth both in Taiwan and China in the second half of this year.
After securing a 30% year-on-year growth in sales in the first half, Taiwan Cement vice president C.C. Huang forecast a 30% year-on-year growth in domestic sales in the second half based on rising selling price of imported cement. In addition, the company`s market share will reach over 40% in Guangdong province, China based on being better positioned to fix prices after acquiring Prosperity International Holding Co., one of China`s leading cement producers, with the move to help Taiwan Cement add about 10Mta in capacity. The company predicts total production capacity will reach 50Mta in China by 2012.
Huang said consumption of cement in Taiwan surged 10% YoY in the first half due to recovering economy and public works projects, with the consumption expected to grow 15% YoY in the second half. Huang noted the price hike in imported cement will lead domestic cement producers to follow suit for typically locally made cement is priced higher by NT$100 and NT$200 per ton. Taiwan Cement may raise product prices sometime in the fourth quarter depending on sales in the third quarter.