Taiwan Cement Corporation (TCC) officially announced its transformation into a group holding company, rebranding as TCC Group Holdings during its shareholders’ meeting on May 21. This strategic shift signifies the 78-year-old company’s evolution from a traditional cement supplier to a diversified conglomerate spanning 11 industries across 13 international markets.
Chairman Nelson Chang highlighted the company’s remarkable journey from its origins as a cement supplier to its current status as a leader in low-carbon building materials, resource recycling, and green energy. “Sixty years ago, TCC was solely focused on cement. Today, we are pioneers in low-carbon technologies and green energy,” Chang stated.
In 2017, TCC derived over 80% of its revenue from the cross-strait cement market. Recognizing the plateauing of the Mainland China market, TCC began exploring international markets. This led to a joint venture with Turkey’s OYAK and the acquisition of ultra-low carbon alternative fuel technologies in Africa through Portugal’s Cimpor. By 2023, 45% of TCC’s profits were generated from its low-carbon cement operations in Europe.
TCC’s diversification strategy is underpinned by four main revenue pillars: low-carbon cement operations in Europe, Africa, and Asia; green energy initiatives; energy storage solutions; and smart grids. The company’s expansion into high-power lithium batteries and other new energy sectors ensures a stable profit stream and the accumulation of valuable patents and technologies.
Nelson Chang emphasized the importance of adaptation in the face of global and technological changes, citing examples like MOTOROLA and TOSHIBA. He stressed that low-carbon building materials will be crucial for competitive advantage in the era of carbon pricing, particularly for disaster reconstruction efforts.
General Manager Roman Cheng outlined TCC’s strategic financial moves, including hedging against currency risks through its holdings in the Netherlands, Turkey, Portugal, and Africa. Despite inflation and currency fluctuations in Turkey, TCC’s financial stability remains intact. The company’s recent investments have established major cement bases globally, ensuring steady net cash inflows.
In 2022, TCC’s consolidated revenue was NT$113.9 billion, with cross-strait cement contributing 68%, energy and power 29%, and other sectors 3%. For 2023, with expansions in Turkey and Portugal, TCC projects nearly NT$160 billion in consolidated revenue. The revenue distribution is expected to shift, with cross-strait cement dropping to 43%, Turkish and Portuguese cement accounting for 31%, and energy and power 24%.
This diversification reduces TCC’s reliance on single markets, enhancing its operational flexibility and stability. The share of revenue from Mainland China is projected to decrease from 44% in 2022 to 25% in 2023, while Taiwan’s share will drop from 53% to 40%. TCC maintains a strong market presence with a 32% share in Taiwan, 1.69% in Mainland China, 16% in Turkey, and over 50% in Portugal, highlighting its robust production capacity in low-carbon cement.
As TCC Group Holdings, the company is well-positioned to leverage its diversified portfolio and international reach to drive sustainable growth and innovation in the global market.
