Taipei,Sept.4,2012--Suffering profit decline in China,Taiwan Cement Co.(TCC)and Asia Cement,two Taiwan-based cement makers,saw plummeting profits in the first half of the year,but,based on confidence in China's market,are still investing in the mainland,totaling over NT$1.8 billion(US$60 million).
Asia Cement saw NT$4.088 billion(US$136.27 million)in net profits in the first half,with earning per share falling 30%year on year(YoY)to NT$1.27(US$0.042);while TCC's net profits decreased 2.5%YoY to NT$3.95 billion(US$131.67 million).
A representative of Asia Cement indicated that profits in the cement business in the first half increased multifolds,but its reinvestment companies including Far Eastern New Century,U-Ming Marine Transport Corp.,Asia Cement(China)Holdings Co.encountered unexpected profit shrinkage due to global economic downturn.
Asia Cement's business in China posted the largest profit decline in the first half,mainly due to serious oversupply in China and price reduction.TCC also suffered sagging profit due to unexpected performance in China,with organic profits in the first half already tying last year's.
With rising infrastructural projects,rebound in domestic cement price due to Taiwan government's anti-dumping tariff on China-made cement,the two companies are both confident toward stable profits in the second half.
Optimistic towards the cement market in China,TCC and Asia cement keep expanding capacities.Taiwan Cement International Holdings Ltd.,a subsidiary of TCC,invested over NT$2 billion(US$66.67 million)to build two production lines in Jiangxi,targeting 50 million tonnes of cross-strait capacity by 2015;while Asia Cement announced to invest US$60 million in its plants in Chongqing(Sichuan Province),Anshun(Guizhou Province).
