Taiwan Cement Firms Mulls Further Expansion in Mainland

Embracing ample growth in China's cement market, Taiwan's cement firms continue to invest in that lucrative market.

With total investments of 650 million renminbi, Taiwan Cement Corp., Taiwan's largest cement producer, has set up a cement-grinding plant in Dongguang, Guangdong province that will come online sometime in 2010.

Goldsun Development and Construction Co. will resume construction of a cement plant in Loudi of Hunan province in August, which had been suspended due to the global downturn. The company will resume construction of the plant as China has launched a four-trillion-renmibi stimulus package. The company will invest at least US$100 million to complete the Loudi plant.

Asia Cement Corp. noted it will invest at least NT$5 billion (US$151.51 million at US$1:NT$33) to further build four kilns in central China in the next three years. By the end of 2010, Asia Cement will see annual production capacity reach over 20 million metric tons in China, aiming to become a top-10 cement producer there.

At present, Asia Cement has annual production capacity of 12 million metric tons of cement in China.

Targeting to be one of China's top-three cement producers, Taiwan Cement has plans to invest NT$3 billion (US$90.9 million) in China by the end of this year, including the Gourong plant in Jiangsu province which will have annual capacity of two million metric tons, a logistics center and four cement-grinding lines in its plant in Dongguan, Guangdong province.

Focusing on the southern China market, Taiwan Cement's next move is to invest in Shaoguan of northern Guangdong province, and the border of Guangxi province and northern Vietnam.