Four Pillars of Revenue: Taiwan Cement Corporation Announces Transform into TCC Group Holdings

At this moment, 200 years after the invention of Portland cement, there are only two types of cement workers said to be left:
One is he who is mesmerized by yesterday’s cement industry, still focusing on production volume.
The others are those who look towards a promising tomorrow, firmly and confidently continuing on their path.

- Nelson Chang -

Taiwan Cement Corporation , the first publicly listed company in Taiwan (stock code 1101), is entering its 78th year in 2024, marking a new milestone!

Chairman Nelson Chang officially announced at the shareholders' meeting in May that the English name of Taiwan Cement Corporation has been changed to TCC Group Holdings, signifying its transformation into a holding group. After seven years of low-carbon transformation, Chairman Chang pointed out that TCC has expanded beyond "Taiwan" and "Mainland China" to include "Europe and Africa" and "New Energy," forming the "four pillars" that support TCC's revenue. Chang described, "In 2023, TCC has delivered a diverse, risk-dispersed, innovative, synergistic, and fully liquid financial report, demonstrating a healthy and robust four-pillar structure."

The Transformation Story of TCC

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In 2017, over 80% of TCC's revenue still came from the cement markets in Taiwan and Mainland China, forming the two main pillars of TCC. Chairman Chang An-Ping noted that, at that time, there were signs that the Mainland China market might plateau after reaching its peak. This prompted TCC to begin exploring markets beyond Taiwan and Mainland China. The first step was establishing a joint venture with Turkey's OYAK, followed by acquiring ultra-low-carbon alternative raw fuel in Africa through Portugal's Cimpor. This made TCC a global leader in the technology of producing ultra-low-carbon cement by using calcined clay to replace clinker. By 2023, 45% of TCC's profits came from low-carbon cement in Europe. At the end of November last year, TCC decided to expand its investments in the low-carbon cement markets of Europe, Asia, and Africa. The international expansions in Turkey, Europe and Africa have undoubtedly created a stable third pillar for TCC's operations.

Over the past six years, TCC has actively invested in green energy, energy storage facilities, smart grids, and high-power ternary lithium batteries. These new energy ventures, which support and sustain the future of human civilization, represent TCC's extension into the future. They not only bring stable profits but have also allowed TCC to accumulate numerous cross-disciplinary patents and technologies, ensuring a competitive edge in the fields of carbon reduction and energy. The new energy sector will be the fourth pillar supporting TCC's transformation, helping it evolve from its historical role into a completely new TCC.

- Nelson Chang -

TCC's General Manager, Roman Cheng, explained that in 2022, TCC's consolidated revenue was NT$113.9 billion, with cross-strait cement accounting for 68%, energy and power for 29%, and others for 3%. In 2023, with the Turkish and Portuguese investments, the projected consolidated revenue is expected to reach nearly NT$160 billion, with cross-strait cement dropping to 43%, Turkish and Portuguese cement at 31%, and energy and power at 24%. This diversification reduces reliance on single markets, enhancing operational flexibility and stability. The revenue share from Mainland China is expected to decrease from 44% in 2022 to 25% in 2023, with Taiwan's share dropping from 53% to 40%.

Understanding TCC's Low-carbon Transformation of Revenue Structure

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TCC is turning a new page, beginning to write a new story for a new TCC. We are on the right path, and we are certainly not alone.