Taiwan Cement Corporation, one of Taiwan’s leading cement producers, recently announced it would tap the cement market in central China by setting up a cement plant in Sichuan Province.
As the mainland authority has determined to delete old cement plants totaling production capacity of 250Mt by 2010 when the mainland’s 11th five-year economic development plan expires, which will lead to a shortage in cement supply in the mainland. To counter, Taiwan Cement has resolved to expand production capacity by 50Mt by 2012.
To that end, Taiwan Cement will add 10 new production lines to its existing 15 production lines in the mainland. The company said it would first set up two production lines in each of Fujian, Guangdong and Guangxi provinces. Each new line will have an annual production capacity of 2Mt.
In addition to the southern China region, Taiwan Cement will single out an appropriate site in Sichuan Province to set up its first cement plant in the central China region, which will result in an intense competition with Asia Cement.
Already establishing a stronghold in central China region, Asia Cement currently has six cement kilns in Jiangxi and Sichuan provinces. The company noted it would install a new kiln at its Chengdu plant of Sichuan Province. The company is also speeding up the pace of building a new cement plant in Hubei Province.