| Summary: | 碩士 === 輔仁大學 === 科技管理學程碩士在職專班 === 103 === The mining rights in western Taiwan have expired since 1992, domestic cement consumption continued to shrink and there were less cases of major public infrastructures. Also, it has become more difficult to get new capacity permission due to concerns over environmental protection. In this case, Chia Hsin Cement has pioneered in investing in Jingyang cement plant in Zhenjiang, mainland China.Other cement players such as Asia Cement, Taiwan Cement, also followed up the trend.
The strong economic growth, rich in natural resources, preferential policies in favor of the investment fromTaiwan, and the similarity of culture and language are the main reasons for cement players to expand in mainland China. However, whether the local government is enthusiastic in attracting foreign investment and willing to cooperate actively is the key factor to the business success.
The main purpose of this study is to analyze the expansion strategies of A Company in China. Through in-depth interviews with the experts, the thesis discussed how A Company developed along the Yangtze River, expanded its coverage from Jiangxi, Sichuan, Hubei, to Yangzhou, and reached 35 million tons of cement capacity.
The competitive advantages of A Company can be summarized asfollows, (1) Good quality of limest on mines storage.(2) Well employing the Yangtze River for cement shipment, while river transportation can save up-to 75% of the logistic cost. (3) Plants are well-located and thus can easily sell to nearby major cities with limited shipping cost. (4) Flexibility in dispatching cement products: either distribute to Yangtze River Delta though returning ships and to overseas markets through silos in Taizhou.
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