On March 7, Taiwan Cement Group announced the completion of delivery procedures related to expanding investment in low-carbon cement in Europe, with a total amount of 621 million euros ; After Turkey increased its shareholding by 20% and Portugal increased its shareholding by 60%, it held 60% of the "joint venture company of Turkish assets" and 100% of the shares of Portugal Cimpor Cement Company, formally becoming one of the main suppliers of low-carbon cement in Europe.
Taiwan Cement has joined hands with OYAK to establish a joint venture company since 2018. The net profit after tax of the joint venture company has increased six times in the past five years, and the joint venture company has continued to inject revenue into Taiwan Cement. So far, the joint venture company has accumulated 2.37 million tons of carbon rights in Europe. According to the report of Research Nester, an international research Institute, the European low-carbon cement market will grow at a compound annual growth rate of 8.5% from 2022 to 2030; Taiwan Cement believes that in the future, the EU will formally implement the CBAM carbon border mechanism, regardless of local or imported cement in Europe, low-carbon will become the main competitiveness to enter the European market.
Taiwan Cement Group Chairman Zhang Anping, General Manager Cheng Yaohui and Future Turkey Asset Joint Venture and Portugal Cimpor & nbsp; CEO Suat Calbiyik and CFO Baren Celik of OYAK Group went to Amsterdam, the Netherlands, to complete the delivery and transfer of shares in the headquarters building of Cimpor Company. The above-mentioned delivery amount of 621 million euros will be supplemented by the net assets figure approved by the accountant on February 29. The related revenue of Turkey and Portugal will also be formally incorporated into the consolidated financial report of Taiwan Cement Corporation from March this year, and the consolidated financial report figures for the first quarter will be announced in early May. After
joining the more complete European low-carbon cement territory, the overall income structure of Taiwan Cement will be more diversified, resilient and growing. In order to complete the expansion of low-carbon layout in Europe, Taiwan Cement has also signed 800 million euros of unsecured sustainable linked syndicated loans. The banking group includes Calyon, one of the largest financial groups in Europe, as a sustainable framework bank and coordinating management bank, China Trust Bank, Taipei Fubon Bank and Singapore Overseas Chinese Bank. This case has been actively supported by 1.5 times over-subscription loans. This syndicated loan is linked to the carbon emission intensity indicators of Category 1 and Category 2 of the Taiwan Cement Enterprise Group, demonstrating the determination of the Taiwan Cement Group to reduce carbon and low-carbon transformation, and continuously increasing the proportion of green financing. The high
carbon price in the European Union, together with the newly revised Building Energy Efficiency Directive EPBD, stipulates that new buildings in all EU countries must have zero carbon emissions in 2026, and that new buildings in 2028 must also have zero carbon emissions, which makes the dema nd for low-carbon cement increase year by year, while the European cement market is expected to increase. Imported cement accounts for a certain proportion all the year round. Cimpor Portugal, which holds 100% of
Taiwan Cement's expanded shareholding, has built the world's only two commercial cement plants using 90% of biomass fuels in Cameroon, Africa, and the world's first large-scale production base for calcined clay cement in Ivory Coast. Calcined clay-blended clinker reduces carbon emissions by at least 40% compared to conventional cement. After acquiring the right to operate Cimpor, Taiwan Cement will expand its research and development of low-carbon cement and continue to develop ultra-low-carbon cement, aiming to become one of the brands capable of producing the lowest carbon cement in the world by 2025.
