With public works projects being pushed ahead by the government, the demand for cement in Taiwan will grow 20 per cent YoY to reach 14Mt in 2009, said KY Lee, president of Asia Cement Corporation, a major listed cement maker in Taiwan.
More optimistic is the Goldsun Development & Construction Co., a leading supplier of ready mixed concrete, who anticipates the overall demand for ready-mixed concrete will grow over 40 per cent YoY in 2009.
The overall expenditure for select public works projects between 2009 and 2012 will total more than NT$100bn (US$3.03bn) in Taiwan; coupled with major private-sector investments as AU Optronics Corp.’s construction of a flat-panel plant in central Taiwan, the overall expenditure will reach NT$1.3trn (US$39.39bn).
The economic slowdown is expected to reduce the domestic demand for cement to only 10Mt. With the government pushing ahead major public works projects, Lee believes the higher demand for cement will emerge after the second quarter of next year.
Affected by the economic downturn, Goldsun predicted it would sell 5.3Mt of ready mixed concrete this year, 70 per cent of which or 4Mt will go to public works projects.