Taiwan’s cement, premixed concrete, construction and steel sectors stand to benefit from faster implementation of massive public work projects budgeted at NT$200 billion, which spells relief considering these sectors have suffered relative to last year in the first three quarters due to the tepid global economy.
The launching of major public work projects beginning the end of this year or in the first half of 2012 will drive sales for the slumping industries of cement, premixed concrete, construction and steel in the next three or four years.
The Taiwan Steel and Iron Industries Association confirmed that the major public work projects will boost demand for steel rebar, steel plates, steel structure, light steel, hot-dip galvanized steel coil and coated steel.
The biggest beneficiaries of the public work projects will include first-tier firms as Taiwan Cement Corp., Asia Cement Corp., China Steel Corp., Tung Ho Steel Corp., Feng Hsin Steel Corp., Goldsun Development & Construction Corp., BES Engineering Corp. and KSECO Corp.
Based on experience, Taiwan Cement said 7% of budgets for major public works will go to procurement of cement and premixed concrete, which will help Taiwan Cement to see 6% annual sales growth in 2012.
With a 52% year-on-year sales decline in the first 10 months, KSECO has recently bid for major public works projects, believing its earnings potential to be markedly raised in the next three to four years.
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