Taiwan's Leading Cement Firms to Expand Output in China

Taipei, March 9, 2011 (CENS)--With the China government having decided to shutter low-efficiency cement plants, Taiwan's leading cement producers, including Taiwan Cement, Asia Cement Corp. and Hsing Ta Cement Corp., are motivated to increase investments by setting up more modern plants in China.

Hsing Ta recently said it would increase paid-in capital of its construction-material plant in Hsingning, Jiangsu province, China to US$70 million, with final investments in the plant to reach between US$100 million and US$110 million. Asia Cement will develop an integrated cement plant, while Taiwan Cement will apply to build a new plant in China.

An industry insider says Taiwan's cement producers will invest over NT$10 billion to expand market share in China by the end of this year.

Hsing Ta says the cement plant in Hsingning is its first investment project ever in China, while its first cement plant is in Pukuo, Nanjing Municipality, with annual capacity reaching 2.1 million tons.

By the end of this year, Asia Cement will set up two cement plants, one each in Jiangxi and Hubei provinces. Asia Cement China CEO said China's 12th national development plan will help boost development of larger, high-efficiency cement plants. Asia Cement will likely invest at least US$150 million in China by the end of this year.

Taiwan Cement said it will expand output of its three plants in Guangan and Chongqing, Sichuan province and Guizhou province, costing over US$200 million, also noting it will definitely set up new, high-performance cement kilns in Shaoguan and Yingde, Guangdong province.

Taiwan cement, noting that it will continue to expand capacity in China through the end of 2012, and is in talks with three cement plants about acquisition.