Chia Hsin continues to invest in China
Chia Hsin Cement Corp has said his company will continue making investments to enjoy the fast-growth of the cement industry in China.
Although suffering an operating loss of NT$40m in core business in the first quarter of this year, Chia Hsin still raked in investment gains of NT$500m in the same quarter because of its 16% stake in TCC International Holding Ltd, one of Taiwan Cement Corp’s subsidiaries, and earnings of NT$500m from disposal of the property of Taipei Grand Mosque.
China Hsin president CC Fu said his company’s Union Cement Plant in China reported NT$57m in the first five months of this year. Fu believed his company will be able to get more handsome profits this year as TCC International is largely expanding production capacity in China.
As Taiwan has slapped interim anti-dumping customs tariffs on imported cement from China, Chia Hsin has resolved to stop importing cement from China and increase procurement of cement from Taiwan’s two leading cement producers, including Taiwan Cement and Asia Cement Corp.
Chia Hsin imported 840,000t and sold 850,000t of cement, including digestion of inventories, in 2010. Since April this year, the company has almost stopped importing cement.
Chia Hsin vice chairman A.P. Chang noted his company will tap the logistics industry as a new core business. In the initial stage, the company has budgeted NT$550m to develop logistics business line and will continue investments in this line in the years to come.
Published under Cement News
