Taiwan Cement Group held a shareholders'meeting on May 21, formally declaring that Taiwan Cement Co., Ltd., which has a history of 78 years, will move towards a group holding company after seven years of active low-carbon transformation. The English name has been changed from Taiwan Cement Corporation to TCC Group Holdings, spanning 11 industries and 13 transnational markets in the world. Zhang Anping, chairman of Taiwan Cement Group, pointed out that 60 years ago, Taiwan Cement was a pure cement supplier; 60 years later, it has been promoted to an environmental engineering company dedicated to low-carbon building materials, resource recycling and green energy.
Zhang Anping pointed out that Taiwan Cement has grown "Europe and Africa" and "new energy" besides "Taiwan" and "Mainland China", forming "four feet" to support Taiwan Cement's revenue. Zhang Anping described that "in 2023, Taiwan Cement has handed over a healthy and stable financial statement with diversified income, diversified risks, comprehensive innovation and full cash flow."
In 2017, more than 80% of the main revenue of Taiwan Cement still came from the cross-strait cement market, which became the two feet supporting Taiwan Cement . Zhang Anping pointed out that at that time, he had faintly seen that the mainland market of China might enter the plain period after touching the peak, so he began to lay out the market outside the two sides. First, it established a joint venture with Turkey's OYAK, and then successfully obtained ultra-low carbon alternative raw materials and fuels in Africa through Portugal's Cimpor, leading the world's cement industry in the technology of replacing clinker with calcined clay to make ultra-low carbon cement. In 2023, 45% of the profit performance has come from the contribution of low-carbon cement in Europe. At the end of November
last year, Taiwan Cement decided to expand its investment in the low-carbon cement market in Europe, Asia and Africa. The international layout of Turkey and Europe and Africa undoubtedly created a steady third foot for Taiwan Cement's operation.
As for the green energy, energy storage field, smart grid and high-power ternary lithium batteries that Taiwan Mud has actively invested in in the past six years, Zhang Anping believes that "these new energy undertakings that support and continue the future civilization of mankind are the tentacles of Taiwan Mud's extension to the future, which not only bring stable profits, but also enable Taiwan Mud to accumulate many cross-domain patents and technologies." In the future, it will be invincible in the competition between carbon reduction and energy. He describes the new energy sector as the fourth leg that will support Taiwan Cement to complete its transformation, completely reinvent itself from its historical role, and support a new Taiwan Cement.
Zhang Anping also cited MOTOROLA, the world's first handheld mobile phone, which was split and sold in 2011, and TOSHIBA, a well-known Japanese company, which ended its 74-year listing on the Tokyo Stock Exchange in 2023, as examples, implying that Taiwan Cement must keep a close eye on the changes in the world, technology and society in order to continue its business. He pointed out that after Taiwan was hit by a strong earthquake of magnitude 7, when it was necessary to reopen roads and rebuild homes, it still needed the support of cement. Like human beings 12,000 years ago, cement is still the adhesive of human civilization and the most trustworthy building material for building the underlying foundation. In the era of carbon price, low-carbon building materials will become the main competitiveness of Taiwan Cement.
Chang An-ping believes that now, 200 years after the invention of Portland cement, there are only two kinds of cement industries left: those who are still waiting to see, those who are still fighting for production, and those who are looking forward to tomorrow, those who are determined to go all the way. Cheng Yaohui, general manager of
Taiwan Cement, explained at today's shareholders' meeting that Taiwan Cement is based in the Netherlands through NHOA, a new energy company controlled by the Netherlands in Europe, as well as companies in Turkey, Portugal, and Africa, hoping to avoid exchange rate risks, that is, natural hedging. Therefore, although Turkey has been affected by inflation and exchange rates in recent years, it has been designed by Taiwan Cement. The impact on the overall financial situation is controllable. Cheng Yaohui pointed out that Taiwan Cement has formally established four major cement bases in the world, which has brought stable net cash inflows to Taiwan Cement.
Cheng Yaohui said that the Netherlands has become a new holding platform for Taiwan Cement's overseas development, developing low-carbon cement, European energy storage and charging pile business. At present, European energy storage business is in Australia, Britain, the United States, South America and Peru, and charging stations are concentrated in Italy, France, Spain and Portugal. At the same time, Taiwan Cement's energy storage business in Taiwan has recently further expanded to the Netherlands and Hangzhou, complementing our new energy companies in Europe.
Cheng Yaohui explained: In terms of revenue by sector, the consolidated revenue of Taiwan Cement in 2022 is NT 113.9 billion yuan, of which cement from both sides of the Taiwan Strait accounts for 68%, energy and electricity 29%, and others 3%. By 2023, if Portugal invests, we can see that the consolidated turnover of Taiwan Cement will be close to NT 160 billion yuan, of which the proportion of cross-strait cement will be reduced to 43%, that of Portugal cement will be 31%, and that of energy and electricity will be 24%. It was originally expected that in 2025, Taiwan Cement hoped that the proportion of cross-strait cement revenue would be reduced to 50%, but the proportion of cross-strait cement revenue has been reflected in the proposed retrospective consolidated statement in 2023. Through the diversification of revenue structure, the impact on the fluctuation of a single market is reduced, the flexibility of operation and the ability to cope with it are enhanced, and the stability of TCC's diversified income is also increased. If the consolidated revenue is differentiated, the proportion of mainland revenue will drop from 44% in 2022 to 25% in 2023, and Taiwan's revenue will drop from 53% in 2022 to 40% in 2023. According to
Cheng Yaohui's analysis, Taiwan Cement has two cement plants with a market share of 32%, 15 cement plants with a market share of 1.69% in mainland China, 7 cement plants with a market share of 16% in Turkey, and 3 cement plants with a market share of more than 50% in Portugal. Moreover, the capacity utilization rate is less than half, which means that Taiwan Cement has sufficient capacity in Portugal, combined with low-carbon cement raw materials in Africa.
