With the mainland Chinese government promising to invest four trillion renminbi to expand infrastructural construction, Taiwan Cement Corporation, a leading producer of cement in Taiwan, plans to continually expand production capacity there.
Taiwan Cement chairman Leslie Koo said China’s demand for cement will continue to grow as fueled by its public works projects, with Taiwan Cement to actively bid for such projects in China. Koo expected to see a turning point in operations sometime in the second half of next year.
Koo said his company has set up plants in Guangdong, Guangxi and Jiangsu provinces, and recently inaugurated the second-stage construction of a cement production line in Gueigang, Guangxi province, which will boost Taiwan Cement’s overall annual output to over 24 million metric tons this year.
Huang Chien-chiang, vice president of Taiwan Cement, said cement in China supplies equally national infrastructural building, office construction, and home building in urban and rural areas, adding that the speeding up of China’s infrastructural construction at the beginning of next year will make that market very promising.
Koo expressed his optimism towards corporate earnings next year because of the expected increase in cement shipments. In addition, the prices for coal, the raw material for cement production, have plummeted 35% since the end of September, helping the company to cut production costs significantly.