CHINA: Taiwan Cement and Asia Cement to Raise Output in China

Driven by the promising cement market in China, Taiwan`s two leading producers—Taiwan Cement Corp. and Asia Cement Corp.—have announced to start heavy investments in China. 

With annual output of 50 million metric tons in China that will surge to 60 million in 2012, Taiwan Cement`s annual output in China will double to 100 million metric tons in five years to become one of China`s three-largest cement conglomerates; while Asia Cement will set up new plants in Hebei province to achieve annual output of 50 million metric tons in four years. 

To continually boost capacity in China, Taiwan Cement will increase paid-in capital by 50% to NT$60 billion. The maker has also developed conductive concrete to tap Hunan and Shanghai markets. 

Asia Cement chairman Douglas Hsu said capacity will be raised by 10 million metric tons to 30 million metric tons in China. By the end of the third quarter, the company will set up four cement kilns in Hebei province to raise annual output by 10 million metric tons in China. Hsu noted the maker aims to invest over US$1 billion in the next four years to boost capacity to 50 million metric tons in China. 

With the 95% anti-dumping tax on imported cement from China, Hsu predicted the maker will sell 12.5 million metric tons in Taiwan and export price of cement will increase by 10% this year.