Goldsun to construct plant in Hunan Province of Mainland China
Goldsun Development and Construction Corp, one of Taiwan’s listed cement concerns, has resolved to invest US$100m in Hunan Province of mainland China to set up a cement plant with an annual production capacity of four million metric tons.
This will be Goldsun’s second cement plant in the mainland, with the first one established in Longyen of Fujian Province.
Goldsun chairman Lin Hsiao-hsin said his company would secure NT$1.4bn (US$42.42m at US$1:NT$33) in fresh operating funds from the issuance of real estate investment trusts (REITs) on its Goldsun building.
Lin stated his company would speed up the pace of deploying cement production in the mainland because the demand for cement there is growing very fast.
After making deliberate evaluation, a few years ago Goldsun decided to keep off the harshest Shanghai region and erected its first cement plant in Longyen of Fujian Province. The proposed second cement plant in Hunan Province is expected to begin mass production sometime in 2010.
Lin noted the first line of the Longyen plant began trial production in the fourth quarter of last year and the second line for the plant is now under construction. After the second line of the Longyen plant is set up, the company will see annual output of the Longyen plant reach four million metric tons. The company has invested US$100 million in the Longyen plant.
Goldsun anticipated it would see mass production of the Longyen plant sometime in the third quarter of this year. The company estimated the Longyen plant will roll out 1.5 million metric tons of cement this year to contribute NT$1.6 billion (US$48.48 million) to the company’s overall sales.
Goldsun estimated it would be able to make profits from the Longyen cement plant this year because the operating profit margin for cement plant is higher than that focusing on premixed concretes.
Poised as Taiwan’s largest producer of premixed concretes, Goldsun currently has a 16% market share domestically. The company first set up a premixed concrete plant in Suzhou of Jiangsu Province in 2002. At present, it owns six premixed concrete plants in the Yangtze River region with annual sales reaching NT$2 billion (US$60.6 million).
Published under Cement News
