Taiwan Cement to tap European market in 2007

Taiwan Cement to tap European market in 2007
13 October 2006

Taiwan Cement Corp (TCC), one of Taiwan’s largest cement producers, has resolved to tap the European marketplace, said TCC chairman Leslie Koo.

To reach that goal, TCC is applying for cement certification by the European Union. The company said it would enter the eastern and southern European cement markets in the beginning of next year at the earliest.

In addition to the European market, TCC also gives high praise to the development potential of the cement market in India. At present, the company has established a panel to evaluate the establishment of a cement plant in India.

Koo noted his company currently is capable of rolling out 10.75Mt of cement per year. The company targets to exports 5.2Mt of cement this year, most of them concentrated on the US market. To disperse operating risks, the company has resolved to penetrate the EU market.

TCC vice president Huang Chien-chiang said demand for imported cement by EU member nations has been increasing as the EU has strictly limited the establishment of new cement plants to cope with the restriction on the emission of carbon dioxide in accord with the Tokyo Protocol.

Huang said the cement prices quoted in Southern and Eastern European nations and Russia has risen to 80 euros, or US$101, per metric tonne, which is higher than that quoted in the US market.

Koo predicted cement exports to the US market would be able to stay at a high level for 12 months. But the promising situation in the US cement market should be reassessed after that time as the US has normalized relation with Mexico for the cement trade, which will have an impact on the US cement competition situation.

To relieve the impact of the cement trade normalization between the US and Mexico, TCC has resolved to develop the European and Indian markets.

Annual demand for cement by India reaches 130Mt with an annual growth of between 6 and 7 per cent on average over the past four years. At present, per capita cement consumption in India reaches 110kg, far less than the 600kg in Taiwan.

Published under Cement News