The sluggish cement industry has received a jump-start from higher demand for construction material following the Sept. 21 earthquake, but Taiwan Cement (
According to Wang Lin-tai (
James Chu (
The launch of some large public construction projects next year will also boost demand. The demand for cement in Taiwan totaled 20.7 million metric tons in 1998.
Though demand will increase, supply is going to be lowered as cement companies' storage of limestone dwindles. Because limestone mining rights in western Taiwan expired at the end of 1997, cement companies must rely on their own stores of limestone and have started to look for sources overseas.
Most companies will run out of limestone deposits by the end of next year -- except for Taiwan Cement and Asia Cement (
The 100-hectare industrial park was planned by the government with an eye toward moving Taiwan's cement industry to the eastern coast after limestone mining rights on the west coast expired. But Taiwan Cement is the only cement company establishing a factory in the park.
"With demand going up and most companies running out of their limestone deposits, Taiwan Cement will be the largest winner when their plant in Hoping starts operating," Chu said.
Taiwan Cement's major competitor will be Asia Cement, but that company's capacity utilization rate is already over 100 percent, making it impossible for it to increase production.
"Should the demand increase, we may build a fourth kiln in our Hualien plant and reduce cement exports," said Fay Lin (
However, industry insiders pointed out that it maybe difficult for the company to build another kiln because environmental concerns; the plant is located in a national park.
Taiwan Cement's new plant in the Hoping Cement industrial park will have three kilns, each with an annual production capacity of 2.7 million metric tons. The construction of the first kiln will be completed in June, next year, and the second kiln in November.
After soaring over 30 percent on the TAIEX since the earthquake, the highest rise among all the sectors, the cement sub-index cooled down on Tuesday and yesterday.
"Cement-related share prices still have potential for rise as the fundamentals for cement companies are good," Chu said. He estimated demand for cement to be 23.1 million metric tons, while supply is expected to come in at just 18.6 million metric tons next year.
PREPARATION: Ferry lines and flights were canceled ahead of only the second storm to hit the nation in November, while many areas canceled classes and work Authorities yesterday evacuated more than 3,000 people ahead of approaching Tropical Storm Fung-wong, which is expected to make landfall between Kaohsiung and Pingtung County this evening. Fung-wong was yesterday morning downgraded from a typhoon to a tropical storm as it approached the nation’s southwest coast, the Central Weather Administration (CWA) said, as it issued a land alert for the storm. The alert applies to residents in Tainan, Kaohsiung, Pingtung and Taitung counties, and the Hengchun Peninsula (恆春). As of press time last night, Taichung, Tainan, Kaohsiung, and Yilan, Miaoli, Changhua, Yunlin, Pingtung and Penghu counties, as well as Chiayi city and county had
The Central Weather Administration (CWA) yesterday issued a sea alert for Typhoon Fung-wong (鳳凰) as it threatened vessels operating in waters off the Pratas Islands (Dongsha Islands, 東沙群島), the Bashi Channel and south of the Taiwan Strait. A land alert is expected to be announced some time between late last night and early this morning, the CWA said. As of press time last night, Taoyuan, as well as Yilan, Hualien and Penghu counties had declared today a typhoon day, canceling work and classes. Except for a few select districts in Taipei and New Taipei City, all other areas and city
SELF-DETERMINATION: German lawmakers add earth to an art installation in front of the Reichstag to show that the face of a nation lies with its people, Tsai Ing-wen said Taiwan’s future should be decided by Taiwanese, German-Taiwan Parliamentary Friendship Group chairman Till Steffen said yesterday, while giving former president Tsai Ing-wen (蔡英文) a tour of the German parliament building. Tsai arrived in Berlin on Sunday and the following day delivered a keynote speech at the Berlin Freedom Conference titled “Threats facing democracies: Taiwan’s experience defending freedom.” Tsai yesterday attended a tea gathering at the Bundestag, joined by former friendship group chairman of 15 years Klaus-Peter Willsch, German defense affairs specialist Roderich Kiesewetter and Federal Ministry of Education, Family Affairs, Senior Citizens, Women and Youth Parliamentary State Secretary Michael Brand. Noting that the
BOOST IN CONFIDENCE: The sale sends a clear message of support for Taiwan and dispels rumors that US President Donald Trump ‘sold out’ the nation, an expert said The US government on Thursday announced a possible sale to Taiwan of fighter jet parts, which was estimated to cost about US$330 million, in a move that an expert said “sends a clear message of support for Taiwan” amid fears that Washington might be wavering in its attitude toward Taipei. It was the first announcement of an arms sale to Taiwan since US President Donald Trump returned to the White House earlier this year. The proposed package includes non-standard components, spare and repair parts, consumables and accessories, as well repair and return support for the F-16, C-130 and Indigenous Defense Fighter aircraft,
RSS