In a major press conference held at 11:30 tonight, Taiwan Cement (TCC) revealed its strategic move to expand investments in the low-carbon cement market across Europe, Asia, and Africa. The company intends to elevate its shareholding in the Turkish OYAK Cement joint venture from 40% to 60% and acquire full ownership, increasing its stake in Portugal’s Cimpor Cement joint venture from 40% to 100%.
The planned expansion, with a targeted completion before the end of Q1 2024, has been authorized by the board of directors for an amount of approximately NT$26.6 billion. The primary focus of this increased shareholding is directed toward advancing the low-carbon development of OYAK and Cimpor, particularly in cement R&D and production technology.
Chairman Zhang Anping emphasized in a press release that embracing low-carbon practices is imperative for survival in the international market, positioning TCC to become a leading supplier of the lowest carbon cement globally. The company has set a goal to be among the few providing highly carbon-competitive cement.
TCC initially entered into a joint venture with OYAK in 2018, subsequently investing in Portugal’s Cimpor through this collaboration. Over the past five years, the joint venture has witnessed a sixfold increase in net profit after tax and a fivefold increase in earnings before interest, tax, depreciation, and amortization (EBITDA). Notably, TCC and OYAK’s joint venture in Turkey has proclaimed a net-zero commitment, marking a significant milestone in the region.
OYAK, with 7 cement plants, 11 clinker production lines, and a robust commitment to alternative fuels and clinker technologies, stands as a pioneering force in Turkey. The joint venture’s achievements include a 61% calorific value replacement rate at the Aslan plant, aligning with the goal of reducing fossil fuel usage.
Cimpor, jointly owned by TCC and OYAK, has demonstrated innovative practices with the world’s only commercial cement plant in Cameroon utilizing 90% biomass fuel for mass production. Moreover, the cement plant in Ivory Coast boasts a groundbreaking process involving calcined clay, reducing carbon emissions by at least 40% compared to traditional cement production. The expansion signifies TCC’s commitment to leading the industry in sustainable and low-carbon cement solutions.
