The Investment Commission under the Ministry of Economic Affairs (MOEA) approved Taiwan Cement Corp to invest US$33.2m in the mainland China on cement plant located at Yingde of Guangdong province.
Taiwan Cement said the funds will be used to construct two set of kilns in the plant. The kilns will be formally commercial run next year. By then, the production capacities in Yingde cement plant will reach 8Mt. The company predicted the production capacities of the plant will reach 22Mt by the end of 2008 by adding more funds.
Taiwan Cement said it will post slight losses from the run in the mainland China reinvestments this year, but the run would turn to moderate profits next year after the depreciation and amortisation. Besides, the company’s Guangdong plant is predicted to turn profitable as the cement prices in the province rising by around 20%. The company predicted its profits in the mainland China would be explosive by 2008.
Koo said the year of 2006 is a crucial year for the business group to deploy in Chinese market with some vital projects to be promoted simultaneously before the end of this year. In the mean time, he said he would not abandon Taiwan market as it is a root for the business group.
Taiwan Cement has been continuing adding investments in the mainland China after the establishment of a cement plant in Guangdong. The company announced late last year, it would inject 150 million Chinese yuan in a new plant located in Guangxi province. By 2008, the company predicted it would register over 20Mt in capacity in cement production years, topping all in the South Eastern China.