Taiwan Cement Targets Green Energy, Faces Profit Decline

Taiwan Cement Corp. is pivoting towards green energy initiatives, including a target of 90 million kWh in green electricity sales and a collaboration with Volkswagen Taiwan to develop charging and storage solutions, while simultaneously navigating a significant decline in operating profit. The company plans to leverage its EnergyArk400 energy storage systems and expand deployment in Europe with the integrated EnergyArk418 starting in the second half of 2026.

The company’s electricity sales are shifting from Feed-in Tariffs (FIT) to Corporate Power Purchase Agreements (CPPAs), resulting in increasing revenue. Taiwan’s total installed power capacity reached 59.842 million kilowatts in 2025, with renewable energy accounting for 22.144 million kilowatts of that capacity. The firm is also actively pursuing opportunities in energy storage, aiming to capitalize on the growing demand for stable grid solutions driven by the expansion of solar power.

Despite the strategic shift towards renewable energy, Taiwan Cement reported a 176% decrease in operating profit. This decline is attributed to reduced performance in both the cement and power energy departments, alongside a decrease in profits from associated companies and joint ventures. The company is mitigating supply chain risks by maintaining a 3-4 month inventory of key raw materials and actively developing alternative suppliers.

Looking ahead, Taiwan Cement anticipates combined sales of 38.14 million tonnes of cement and clinker, along with 6.19 million cubic meters of ready-mixed concrete in Taiwan and Mainland China. For its European and Turkish operations, the company targets 17.83 million tonnes of cement and clinker and 8.75 million cubic meters of ready-mixed concrete. The recent acquisitions, including Turkey’s OYAK Cement, have positively impacted financial performance in prior years, but current results reflect broader operational challenges.