Shui On Construction and Materials Ltd chairman Lo Hong-Sui says cement sales volume will continue to increase in 2008 as three new production lines will start operation in the year. Shui On can increase cement production output to 20Mt in 2008.
It will have three new cement production lines starting operation, adding production capacity of 1.5Mt. In 2007, Shui On had a designed production capacity of 24Mt although it only output 17Mt of cement.
Company vice chairman Lawrence Choi unveils that gross profit of each ton of cement is around US$ 5 currently, the company hopes to raise it to US$8 in 2008. With an increased selling price of cement, Shui On’s cement sales in Sichuan province has reported an increase to over RMB400/t in the first quarter of 2008 from RMB320/t in the last quarter of 2007. The price hike also improves Shui On’s bottom line.