Taiwan Cement Corp., one of Taiwan’s leading producers of cement, said it would see annual production capacity reach 45Mt in 2012 in the wake of merging with Chia Hsin China. The production capacity will help Taiwan Cement to grab a 30% share in southern China cement market.
Chia Hsin said its Jingyang and Union cement plants located in the mainland each scored over 20 million renminbi in earnings in the first half of this year. Thanks to the price hike in cement in the mainland market in September, these two plants will see earnings in the second half of this year exceed that of the first one.
After expanding its share in southern China, Taiwan Cement will continue to extend its antenna to central and northern China region, struggling for the No.1 spot in mainland’s overall cement market.
Taiwan Cement chairman Leslie Koo said his company will see annual capacity amount to 22 million metric tons of cement in 2008 in the wake of the mass production of Yingde plant of Guangdong province and a grinding plant of Fuzhou of Fujian province. At that time, the company will kick off a second-phase expansion project.
Koo noted his company would see overall production capacity reach 35 million metric tons of cements across the Taiwan Strait after the first-phase expansion project is completed in 2008. The company estimated its overall annual production capacity across the Taiwan Strait will challenge the goal of 50 million metric tons of cement in between 2010 and 2012.
Due to the price hike in cement in southern China region, Taiwan Cement will see earnings contribution from the mainland amount to 150 million renminbi this year. The company noted its Yingde plant in Guangdong province has begun making profits since the first quarter of this year.
A foreign investor noted Taiwan Cement and Chia Hsin Cement would enjoy structural improvements in earnings and land assets in the wake of the merger of between Taiwan Cement International and Chia Hsin China.