Taiwan Cement makers stepping up deployment in Southern China

Taiwan Cement makers stepping up deployment in Southern China
Published: 27 March 2007

Taiwan’s three major cement producers, including Taiwan Cement Corp., Universal Cement Corp., and Goldsun Development & Construction Co., are stepping up their business deployment in southern China market.  
Of them, Taiwan Cement is now building five up to 10 cement-grinding plants in the southern China region; Universal Cement will begin construction of a second production line at its Huizhou plant in Guangdong Province; and Goldsun has set a goal to see output exceed Mta at its Fuzhou plant in Fujian province this year.  
Besides continually expanding production capacity in the mainland, Taiwan Cement president Huang Chien-chiang said besides continuous expansion of production capacity in China, his company is building five up to 10 cement-grinding plants in Guangzhou of Guangdong Province and Fuzhou of Fujian Povince as a relay station for taping the southern China market.  
A domestic securities firm anticipated Taiwan Cement to garner earnings of NT$390m (US$11.81m) in mainland operations this year and NT$1.3 billion (US$39.39m) next year.  
Universal president Lee Kuo-tung said his company has set up four subsidiaries with eight production lines of concrete in Ningbo of Zhejiang Province. The company will establish a ninth production line in the mainland this year. After the ninth production line is completed, the company will see annual production capacity of concrete in Zhejiang province reach 1.45Mm2.  
Although Universal only focuses on production of concrete in Zhejiang Province of central China, it has set up a production line of cement in Huizhou of Guangdong Province of southern China. The Huizhou plant currently is capable of supplying one million metric tons of clinkers and 1.2Mta of cement. The company is preparing to begin construction of a second cement kiln in the Huizhou plant sometime in April this year. After the second kiln is built up, the plant will see annual output reach 1.2Mt. In addition, a cement-grinding plant will be erected also in Huizhou, which will help raise the firm’s annual cement output to 2.4Mt in Huizhou.  
Just starting its cement production in the mainland in the beginning of this year, Goldsun anticipated it would be able to register between 1.8Mt-2Mt in cement production, with target sales reaching NT$2bn(US$60.6m) this year.