Taiwan Cement, Chia Hsin likely to form strategic alliance for Chinese ops

Taiwan Cement, Chia Hsin likely to form strategic alliance for Chinese ops
Published: 13 June 2007

Hong Kong-listed subsidiaries of Taiwan Cement and Chia Hsin Cement, two leading cement makers in Taiwan, have suspended trading of their shares from June 12, reportedly for merger or cross shareholding, in order to cope with the growing competition in the huge Chinese market.

In their press releases for move, issued via Hong Kong Exchanges and Clearing Limited, Taiwan Cement reported that the company is going to issue a statement concerning a major merger, while Chia Hsin Cement stated that it will announce a major change in shareholding composition of Chia Hsin Cement (China).

Although the two companies refused to comment on the move, noting that they are in the silence period now, their executives already revealed their intention in earlier remarks. Koo Cheng-yun, Taiwan Cement chairman, noted at an explanatory session for institutional investors in early May that in addition to reinforcing its manufacturing base in southern China, the company doesn’t rule out the possibility of engaging in strategic alliance, in order to cope with strong competition from Conch Group, the leading Chinese cement maker.