Asia Cement to invest NT$2.52 bil in Kaohsiung battery storage facility

Asia Cement announced Aug. 8 that it is plans to invest NT$2.52 billion ($84 million) in a 100 MW battery energy storage project in Kaohsiung's Siaogang District, marking a major step in diversifying beyond its core cement operations.

The investment, which will be rolled out from the fourth quarter of 2025, will be financed through a mix of internal capital and bank loans, according to the company. The project will be developed under a newly established subsidiary, Yayu Power Co. Ltd., and will participate in Taiwan Power Company's composite frequency regulation service, E-dReg. Asia Cement secured Taipower's connection approval for the facility in early 2024.

Company executives said the move aligns with a broader strategy to expand its presence in the energy sector, add new revenue and profit streams, and enhance overall business resilience.

In its latest earnings update, Asia Cement reported July 2025 revenue of NT$5.836 billion, down 13.2% year over year, as weaker cement prices in mainland China outweighed gains in sales volumes. Cumulative revenue for the first seven months of 2025 declined 2.6% to NT$41.09 billion.

The company said steady growth in Taiwan's cement sales and strong performance from its subsidiary Ya Tung Ready-Mixed Concrete have helped stabilize revenue, despite some external pressures. In mainland China, cement prices are beginning to recover, and Asia Cement said it will continue to track market developments to sustain its competitive position.

Cement and clinker market participants said the move is unlikely to have a significant long-term impact on the broader Asian market, due to Taiwan's relatively small cement and clinker trade volumes compared with major exporters such as Vietnam and Indonesia. However, they expect Taiwan's imports from Vietnam to drop sharply. Traders have forecast a shift in trade flows, as Taiwan imposed antidumping duties of up to 23.2% on Vietnamese portland cement and clinker, effective July 28 for five years.

Platts, part of S&P Global Energy, assessed cement (ASTM type I) FOB Vietnam at $32/mt and cement clinker FOB Vietnam at $32.50/mt on Aug. 7.