Asia Cement has announced a major investment in a new battery storage project in Kaohsiung’s Siaogang District. The company will inject NT$2.52 billion (US$84 million) into this large-scale battery storage project, marking a strategic move to diversify its revenue streams beyond its traditional cement business. This battery storage project reflects Asia Cement’s efforts to expand its business model and improve profitability.
Starting in the fourth quarter, Asia Cement will fund the project through a combination of internal funds and bank loans. The initiative supports Taiwan Power Company’s energy storage system, with Asia Cement having secured connection approval from Taipower last year. The facility will have a capacity of 100 MW, underscoring the company’s commitment to clean energy and innovation.
Meanwhile, Asia Cement revealed its revenue performance for July. The company generated NT$5.83 billion, representing a 13.18% decrease compared to the same month last year. This drop primarily results from lower cement prices in China, despite an increase in sales volume. For the first seven months of this year, the total revenue stood at NT$41.09 billion, which is 2.63% lower year-on-year.
In Taiwan, the company has experienced steady growth in cement sales, which has helped stabilize overall revenue. Additionally, strong results from subsidiary Ya Tung Ready-Mix have cushioned the impact of market challenges. Together, these factors have kept Asia Cement’s revenue stable amid difficult macroeconomic conditions.
Moreover, cement prices in China are beginning to recover. Asia Cement said it will carefully monitor these trends to maintain its competitive edge. The company also emphasized that its performance continues to surpass the industry average. By focusing on this battery storage project and other growth areas, Asia Cement aims to strengthen its market position.
In summary, Asia Cement’s battery storage project highlights a significant step toward revenue diversification. The company is actively balancing traditional cement operations with innovative energy solutions. This balanced approach could offer resilience against market fluctuations and pave the way for sustainable growth.
