Taiwan Cement to set up production base in Guangdong

Byyyp

Updated Fri, 01 Jul 2011 00:00:00 GMT

Taiwan Cement Corp., one of the island's leading cement providers, said Thursday its subsidiary TCC International Holdings Ltd. is planning to set up a production base in Shaoguan in China's Guangdong province.

TCC International has signed an agreement with the Shaoguan authorities for the investment which is expected to total 1.85 billion Chinese yuan (NT$8.33 billion), Taiwan Cement said.

The investment project is pending approval from the Chinese central government.

Under the agreement, TCC will build four production lines at Shaoguan with an annual production capacity of 10 million metric tons. In the first stage, the production capacity is expected to reach 5 million metric tons.

China is phasing out its out-of-date cement production facilities and building new ones to meet demand, boost efficiency, and improve the environment under the on-going 12th five-year economic development plan, Taiwan Cement said.

Taiwan Cement said as Shaoguan is located along the border between Guangdong province and Guangxi Zhuang Autonomous Region, the new investment is expected to help TCC International secure business from southern China.

In addition to the two provinces, Taiwan Cement said the product from the Shaoguan base will be shipped to southern Yunnan province to meet infrastructure needs.

Taiwan Cement currently owns a 40 percent stake in TCC International, which has been listed on the Hong Kong Stock Exchange since October 1997.

Among the large-cap cement stocks that have set up strong footholds in China, Taiwan Cement has been supported significantly by institutional buying on the Taiwan Stock Exchange as cement prices on the mainland are on the rise amid tight supply caused by an electricity shortage.