Taiwan Cement International, a subsidiary of the Taipei-based Taiwan Cement Corporation and listed on Hong Kong Stock Exchange, recently announced it would invest US$197m, or approximately NT$5.98 billion, to expand the production capacity of its Yingde plant located in Guangdong Province, mainland China.
Taiwan Cement International said it would set up two new production lines in that plant, with each capable of turning out 6,000 metric tons of cement per day. In addition to the two new lines, the company will also set up a grinding line, some power-generating units and some matching facilities.
Huang Chien-chiang, vice president of Taiwan Cement, said these two new cement production lines in the Yingde plant will be fully completed sometime in mid-2010. At that time, the plant will own eight production lines in total with annual production capacity reaching over 18 million metric tons, becoming the largest cement plant in the southern China area.
Taiwan Cement noted it has raised the prices for the cement distributed in the southern China market by 30 renminbi to reach over 400 renminbi per metric ton beginning from July.
Taiwan Cement anticipated it would see annual production capacity reach 22Mt of cement in southern China area by the end of this year.
An institutional investor said Taiwan Cement will see delivery capacity in the mainland double to reach 16Mt this year. Based on the anticipated increase in output, Taiwan Cement expects its earnings in the mainland to double to over CNY500m this year.