Taiwan Cement to invest US$1bn to expand production in China
Taiwan Cement Corporation, Taiwan’s largest cement producer, will invest US$1bn in a second-stage expansion project to see annual production capacity reach 50Mt of cement in mainland China.
For the new investment project in the mainland, Taiwan Cement will in principle set up new plants in Guangdong, Guangxi and Fujian provinces, each with two kilns. The company will also establish three additional kilns in Jingyang plant which was acquired from Chia Hsin Cement Corp.
Huang Chien-chiang, vice president of Taiwan Cement, noted his company would be able to complete first-stage expansion project by the end of 2009. The first-stage expansion includes eight kilns in Yingde plant in Guangdong province and another four kilns in Gueigang plant in Guangxi province.
After the expansion project in the Gueigang plant is completed in August this year, Taiwan Cement will see production capacity reach 21Mt in the mainland. With an addition of 11Mt of cement in annual capacity, the company estimated it would be able to secure 500 million renminbi in earnings in the mainland.
Once the two stages of expansion projects are completed, Taiwan Cement will stand firmly as the largest cement producer in southern China region.
In parallel to the expansion move launched by Taiwan Cement, another Taiwanese cement leading producer-Asia Cement Corporation has resolved to expand annual production capacity by two million metric tons this year. The company said it has a few kilns under construction which will begin operations in 2010.
Thanks to the booming development of the mainland cement market, Asia Cement is expected to secure 450 million renminbi in earnings this year.
Published under Cement News
