Asia Cement’s Sichuan plant seen as cash Cow

Asia Cement’s Sichuan plant seen as cash Cow
Published: 06 January 2009

With the inauguration of a kiln on Dec. 28, 2008, Asia Cement Corp., a leading cement maker in Taiwan, will see annual output of its Sichuan plant total 4Mt in 2009, which is expected to generate tens of million renminbi in revenues per year.

With the speedy reconstruction work after the devastating Sichuan earthquake in May 2007, the cement price in Sichuan has peaked relative to those in China, which will benefit Asia Cement. The quotation for P42.5-type cement in Sichuan recently surged to 530RMB per metric ton.

Asia Cements’ first-stage investment project will be completed in 2011, at which time the company will have 10 kilns in China, including three in Sichuan province, four in Jiangxi province, another three in Hubei province. The 10 kilns will have total capacity of 20 million metric tons of cement and four to five million metric tons of clinkers.

Asia China chairman Douglas Hsu said the deployment in Sichuan province will help his company solidify markets in both Sichuan and the midstream along the Yangtze River.

Asia Cement stressed its plant in Sichuan province will become its most profitable subsidiary as China is promoting a four-trillion-renminbi project to revitalize domestic demand.