Taiwan's Asia Cement Corp Plans Expansion Strategies In China's Mainland.

A series of mergers and new plants will help company increase production capacity in China. A major expansion drive is envisioned by Taiwan's Asia Cement Corp in a bid to increase its current production capacity.

After investing in 1.605% in China's Sunnsy Group, the company is further set to acquire a 70% stake in Xinlinyun Cement Corp in Wuhan, Hubei. More plans include the setting up of two cement kilns in its plant in Jiangxi province. As cement adding production lines, there will be an increasing demand of cement plant such as ball mill, rotary dryer and cement mill.

While year-on-year figures for last year indicated a decline of 44% in production, the company increased its earnings after tax by 49%. The companys current expansion plans will lead to 10 production units in China with a total estimated capacity of over 34 million metric tons annually as reported in CENS.

Asia Cement adds two production lines Company increasing output, predicts strong second quarter. Taiwan-based Asia Cement Corp will spend $123.07 million toward the construction of two additional production lines in its Jiangxi Province cement plant in China, reports CENS. The new production lines will make Asia Cement the lead producer of cement in Jiangxi, with an output of 12 million tons per year.

Asia Cement president K.Y. Lee forecasts a more profitable second quarter in China and Taiwan, with the Jiangxi plant raising prices 5 percent. Asia Cement recently acquired Xinlinyun Cement in Wuhan, Hubei Province. A new production line is scheduled to open in November in Hubei Province, and fifth and sixth production lines are being added in Jiangxi Province, bringing Asia Cements annual output to 27 mm tons by 2014 in Taiwan and China. Earlier in 2010, Asia Cement acquired 1.6 percent of Sanshui Cement in Shandong Province, which will enable Asia Cement to expand their market into Shanxi Province, Henan Province and Inner Mongolia.

Asia Cement invests in Shanshui Cement Group Asia Cement Corporation, Taiwan's leading cement producer, recently announced it has signed, through its subsidiary----Asia Cement (China) Holdings Corp. which is listed in Hong Kong, a memorandum of understanding (MOU) with Sunnsy Group of China to acquire a 30% stake of the group's subsidiaries in northeastern China and Inner Mongolia. In addition, Asia Cement will also obtain a 10% stake in Sunnsy Group to tap northeastern and northwestern China markets.

All the acquisition deals will be settled by May 1, 2011. In the past, Asia Cement concentrated on central China market. Since the beginning of this year, Asia Cement has twice invested in Sunnsy Group, each in May and October. Up to date, Asia Cement China has obtained over 1.7% shareholdings in Sunnsy Group. Sunnsy Group is currently the largest cement conglomerate in Shandong province and has tapped such markets of Liaoning province of northeastern China, and Inner Mongolia of northwestern China. Over the past decade, Sunnsy Group has expanded annual production capacity 60 million metric tons of cement from less than two million metric tons in 2000. Thanks to its dedication to expanding production capacity, the group has grown into one of China's top-10 cement conglomerates in terms of output and one of China's top-five most profitable cement conglomerates. Relatively, Asia Cement Group has an annual production capacity of 30 million metric tons of cement both in Taiwan and China. Asia Cement China chief executive T.H. Chang said there is ample room for his group to develop in China. Asia Cement China predicted its annual production capacity will be able to reach 32.4 million metric tons of cement in 2014, not enough for it to squeeze into the list of China's top-10 cement conglomerates. As the China government is encouraging large-sized cement groups to expand production capacity, Asia Cement China will continuously seek growth room in northeastern and northwestern China by way of acquisition and industrial cooperation.

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