As a result of a recent cement price hike in China, Taiwan’s leading cement producers and exporters, including Taiwan Cement Corp., Asia Cement Corp., Chia Hsin Cement Corp. and Goldsun Development & Construction Co., all reported excellent sales and earnings in the first quarter of this year.
TCC International Holding Limited, Taiwan Cement’s Chinese subsidiary is expected to see first-quarter earnings exceed CNY280 million, compared to a loss of CNY20 million year-on-year.
TCC is the largest Taiwanese-invested cement producer in China, with a capacity of 46 million tpa. The company shipped a record 3 million t of cement in March of this year.
Another success story is Asia Cement (China) Holdings Corp., Asia Cement’s Chinese subsidiary. The company recorded CNY67 million in after-tax earnings in the first quarter of last year, with its earnings expected to exceed CNY237 million in the first quarter of this year.
Quoted cement prices in eastern and southern China have been rising in the past few weeks. Taiwan Cement predicts cement prices in China will rise 10% in the second quarter of this year.
Chia Hsin forecasts cement prices quoted in Jiangsu province will rise between CNY10 – 20 per t by the end of this month.
Institutional investors estimate Chia Hsin’s Chinese subsidiary will be able to post earnings of CNY20 million in the first quarter of this year.
Goldsun’s subsidiary in China saw its sales of cement and premixed concrete grow by 88%, and by 58% year-on-year in the first quarter of this year. Institutional investors predict the company will very likely see earnings from investments in China exceed a historic record NT$700 million this year.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/27042011/rise_in_cement_prices_in_china_sees_taiwanese_firms_profit/