Taiwan Cement Corporation and Asia Cement Corporation, are continuously expand production capacities along with boosting production efficiency in the mainland.
Faced with the aggressive expansion launched by these European cement producers, Taiwan Cement has announced it would invest US$1 billion to expand its annual production capacity to reach 50Mt in the mainland in 2012.
Taiwan Cement vice president Huang Chien-chiang said Taiwanese cement firms have advantage over European peers in investing in the mainland as the mainland authority regulates foreign firms are required to cooperate with mainland producer while investing in the mainland. In contrast, Taiwanese firms are not subject to such strict regulation and allowed to independently invest in the mainland.
Asia Cement said it has set aside RMB770m to set up a cement plant in Juanggang of Hubei province which is designed to have an annual production capacity of 2Mt. Construction of the Huanggang plant has begun. The company estimated it would see annual output amount to over 16Mt of cement in the mainland in 2009.
An institutional investors predicted both Taiwan Cement and Asia Cement will be able to register more profits this year than last year’s level as the cement prices in the mainland are on the upswing trend.