Encouraged by the consistent rise in international cement prices, Chia Hsin Cement Corporation, one of Taiwan’s largest producers of cement, will totally export output from its two plants in mainland China beginning from next year.
Chia Hsin predicted export prices for cement to grow 5% up to 10% year-on-year next year. The company currently operates two plants in the mainland, one named Jingyang and the other Union, both located in Jiangsu province.
At present, the export prices for Chia His’s cement reach US$37 per metric ton. By raising export ratio, the company said it exported 1.2 million metric tons of cement in the first half of this year, which may expand to three million metric tons for the whole of this year. The two plants in the mainland contributed NT$110 million (US$3.35 million) to the company’s overall earnings in the first half.
With the inauguration of the deep-sea wharves along the Yangtze River, Chia Hsin said it has seen reduction in transportation costs and plans to totally export the cement products rolled out from the two plants beginning in 2007.
Chia Hsin said in the first half of this year, it has formed strategic alliances with four medium- and small-sized cement producers of the mainland to facilitate sales to Taiwan. So far, the company has procured more than 100,000 metric tons of cement from the mainland and sold them to Taiwan.