Asia Cement sees capex rising 25 per cent in 2009

Asia Cement, Taiwan, said it expects 2009 capital spending to rise about 25 per cent to CNY2bn, mainly for capacity expansion, according to news reports from Reuters. Funds will be invested in five production lines, of which three will come on-stream in 2009, and two will start operations in 2010, said chief executive officer Chang Tsai-hsiung on Tuesday.

That compares to capital expenditure of CNY1.6-1.7bn in 2008, Reuters reported.

The company, which focuses on the central Yangtze River region and western province of Sichuan, will boost its designed annual clinker capacity to 8.3Mt in 2009 and 13.86Mt in 2010. It made 6.93Mt of clinker.

"The focus of the Chinese government’s CNY4trn stimulus package is on infrastructure investments and that will benefit the country’s cement industry in the next few years," he said.

Chang expects demand for cement to rise significantly in the second and third quarters.