Taiwan Cement to benefit from mass plant closures in China

Byzhangli

Updated Wed, 11 Sep 2013 00:00:00 GMT

Taiwan Cement Corp expects to benefit from China’s insistence on modern technology. More than 500 outmoded cement plants are scheduled to be shut down before the end of the year, providing an opportunity for Taiwan Cement to increase its shipments to China.

Taiwan Cement’s dispatches to China stood at 39.7 million t in 2012, and this is expected to grow by between 10 and 15% this year to 45 – 46 million t. Speaking at an investors conference, Edward Huang – Taiwan Cement’s senior vice president – added that sales in Taiwan are also expected to grow slightly beyond last year’s 8.6 million t.

Improving profit margins

The company is making strides towards increasing profitability and reducing costs, and is predicting an increase in its gross margin this year, which stood at 22.6% last quarter. In all, in the first half of this year, Taiwan Cement shipped 21 million t of cement to China and sold 4.3 million t in Taiwan, achieving a 1% profit increase. It has increased prices in China’s Guangxi Province, and aims to do the same in Guangdong Province later this month.

Taiwan Cement has 54.9 million tpa production capacity in China and 10.6 million tpa in Taiwan.