Taiwan Cement expands in China
After formerly acquiring the cement business of the China-based Prosperity International Holding in March, Taiwan Cement Corporation, Taiwan’s leading cement producer, will see its territory stretched from China`s coastal provinces to inner lands.
Taiwan Cement chairman and president Leslie Koo noted the expansion of the territory in China will help his company secure much more profits this year. Koo said Taiwan Cement will see this year`s quarterly earnings from China keep the same high level as the fourth quarter of last year.
Despite an operating loss of CNY200m in the first three quarters of last year in China, Taiwan Cement made handsome earnings in the fourth quarter of last year, enough to offset the losses encountered in the first three quarters.
With the acquisition of the cement business of the Prosperity International, Taiwan Cement is expected to secure CNY1bn, or about NT$4.65bn, in earnings this year, which will contribute over NT$2.5bn to the parent’s overall earnings.
Over the past several years, Taiwan Cement has been deeply rooting in southern China cement market and Prosperity`s cement business is also based in Yingde of Guangdong province with four cement production lines. The acquisition of Prosperity`s cement business will help Taiwan Cement to solidify its No. 1 status in Southern China cement market.
Moreover, Prosperity has established cement plants in Sichuan, Yunnan and Guizhou provinces, which will help Taiwan Cement to extend its territory from southern China to inner lands. In addition, Prosperity building a new cement plant in Liaoning province of Northeastern China with proposed annual output reaching two million metric tons. The Liaoning plant will begin mass production in April or May this year.
Published under Cement News
