Taiwan Cement acquires Prosperity Minerals Holding’s cement business

Taiwan Cement Company has formally acquired the cement capacities held by the Hong Kong based Prosperity Minerals Holding Ltd for £ 300 million. The company will purchase all of the existing five kilns in China owned by Upper Value Investments, a spin-off from Prosperity Minerals Holding Ltd As a result of the acquisition, Taiwan’s Cement capacities in China will increase by 16 million tpa, and its total capacity in China to about 43 million tpa. It has been reported that TCC is looking to achieve an annual output in the mainland of 50 million tpa. It is understood that Prosperity Minerals will retain an equity stake in Anhui Chaodong cement in Eastern China, as well as its iron ore business.

Taiwan Cement, the largest supplier in Taiwan, produces some 25 million tpa of cement and is also a manufacturer of ready mixed concrete products for distribution throughout Asia, the Middle East, and the US. It also produces paper bags and sludge treatment agents.

Prosperity’s Chairman Wong Ben Koon is reported to have said that capacity expansion was often hampered by a lack of suitable sites for new plants While the cement business has generally performed well historically and the outlook for its existing cement operation was  promising, his board believed that it would become harder to achieve significant organic growth in the cement business.At the same time TCC’s Chairman, Leslie Koo, remarked that the company will expand its Chinese operation in collaboration with other enterprises.

Read the article online at: https://www.worldcement.com/asia-pacific-rim/04012010/taiwan_cement_acquires_prosperity_minerals_holding%E2%80%99s_cement_business/