TAIWAN: Taiwan Cement Acquires China-based Tai Chang

Taiwan Cement Corporation, Taiwan’s largest cement producer, recently announced it has offered 700 renminbi, or NT$3.5 billion, to acquire Tai Chang Group which is located in Sichuan province, China. 

Tai Chang is situated in southern part of Chengdu of Sichuan Province, where there are few cement plants but cement demand there is on the rise because of the implementation of several large-sized public works, including hydropower plants and expressways. 

Thanks to the acquisition, Taiwan Cement will see annual production capacity increase by three million metric tons of cement to reach 60.3 million metric tons, becoming one of the top-three cement conglomerates in Sichuan province. 

Taiwan Cement said it will continually launch merger and acquisition cases because cement demand in southwestern China will be on the rise in the wake of increased construction of public works there. 

The company has projected to boost annual production capacity to 100 million metric tons in China in 2016, becoming one of China’s top-three cement producers. Up to date this year, the company has completed four acquisition projects in China. 

Institutional investors believed Taiwan’s leading cement producers, including Taiwan Cement and Asia Cement Corp., will be able to make more profits in 2012 than 2011 because of their expansion in the lucrative China market.