Taiwan Cement Corporation, one of Taiwan`s largest cement producers, recently decided to hike selling prices of cement produced in Jiangsu and Fujian provinces by 20%, to CNY300/t from CNY200.
In the meantime, Taiwan Cement is expanding its production capacity in both Jiangsu and Fujian provinces. After the expansion projects in these two provinces are completed, the company will see an additional shipment of approximately 5Mta.
C.C. Huang, Taiwan Cement vice president, said the cement prices quoted in the eastern China market have increased in the wake of the price hike in such raw material as coal.
For instance, in the beginning of April Taiwan Cement has raised the selling prices for cements produced in its Gourong plant in Nanjing of Jiangsu province by 20%, to 300 renminbi.
Taiwan Cement said it purchased the Gourong plant from Chia Hsin Cement Corp. last year. At present, the plant is capable of producing 2.25Mta of cement. The company has begun construction of a second kiln which is expected to complete sometime in 2009, at which time the company will be able to supply cement to the whole of eastern China along the Yangtze River, and even export globally.
Taiwan Cement noted it has also raised product prices by CNY10/t ton, to between CNY390 and CNY400 in Fujian province. The company predicted annual demand for cement in the Fujian market would grow 30 per cent in the years to come.
The company`s Fuzhou plant in Fujian province currently has two production lines capable of shipping 1.5Mt of cement per year. With a production expansion project, the plant will see shipments amount to 2.2Mt.
According to Taiwan Cement’s plan, the Fuzhou plant will continue to expand production capacity so that its annual shipment would reach 4.5Mt by 2010.