Thanks to the cement price hike in China, Taiwan`s leading cement producers investing in China, including Taiwan Cement Corp., Asia Cement Corp., Chia Hsin Cement Corp. and Goldsun Development & Construction Co., all reported excellent sales and earnings in the first quarter of this year.
Taiwan Cement`s subsidiary in China—TCC International Holding Limited is expected to see first-quarter earnings exceed 280 million renminbi or NT$1.28 billion, compared to a loss of 20 million renminbi year-on-year.
TCC shipped over three million metric tons of cement in March, for a historic high. The largest Taiwanese-invested cement producer in China, the company`s annual capacity is 46 million metric tons.
Asia Cement`s subsidiary in China—Asia Cement (China) Holdings Corp.—posted 67 million renminbi in after-tax earnings in the first quarter of last year, with its earnings expected to exceed 237 million renminbi in the first quarter of this year.
Over the past few weeks, cement prices quoted in eastern and southern China have been rising. Taiwan Cement predicts cement prices in China will rise 10% in the second quarter of this year.
Chia Hsin forecasts cement prices quoted in Jiangsu province will rise between 10 renminbi and 20 renminbi per metric ton by the end of this month.
Institutional investors estimates Chia Hsin`s subsidiary in China will be able to post 20 million renminbi, or NT$89 million, in earnings in the first quarter of this year.
Goldsun`s subsidiary in China saw sales of cement and premixed concrete grow 88% and 58% year-on-year in the first quarter of this year. Institutional investors predict the company will very likely see earnings from investments in China exceed NT$700 million this year, for a historic high record.
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