Another TCC testimonial comes from college alumni associations. They ask members to buy cement stock, then hold their annual get-togethers at the same time as the TCC stockholders' meetings. The TCC attendance magnet is more powerful than any attraction offered by the alumni groups.
In Asia, Taiwan's cement industry ranks second to that of Japan with an annual production of 2.2 million metric tons. For the last three years, it has been the biggest Asian exporter, because Japan consumes 92 per cent of its output at home. The 1963 exports are expected to reach a record of 850,000 metric tons.
Exports began in 1958 with 270,000 metric tons. The figure dropped in 1959-1960 as home demand soared in the wake of the disastrous 1959 flood, then leaped to 300,000 metric tons in 1961 and to 500,000 in 1962. Vietnam, South Korea, Hongkong, and the Philippines have been the biggest buyers. Australia and Indonesia also have placed orders.
A total of 5,000 metric tons of cement has been donated to the U.N.-sponsored Lower Mekong River Project in Southeast Asia by the Taiwan, Chia Hsin and Asia Cement Corporations.
Growth of the industry has been no accident. Taiwan abounds in the raw material for cement, principally limestone and clay. Coal is available for fuel and paper for cement sacks. Silica and cinders also are of local origin. Only a small amount of gypsum need be imported from Cyprus.
Machinery comes from the United States, Japan, and Germany. Replacement parts are being manufactured in Taiwan.
Cement has modernized the island's urban look. Reinforced concrete buildings as high as 15 stories are springing up in cities. Power is distributed via wires strung on cement poles. Water flows through cement conduits.
River embankments are made of cement. So are railroad ties. In gymnasiums young men build their muscles with cement dumb bells and bar bells.
Country folk are using cement bricks to build houses, and cement to pave courtyards. Cement has found its way into cow pens and pigsties.
Paddies are irrigated by water flowing through cement-lined canals leading out of cemented reservoirs.
The construction of Shihmen dam, the Far East's biggest multi-purpose water project, has consumed 80,000 metric tons of cement in the last seven years.
Cement fortifications of the offshore island of Kinmen have withstood Chinese Communist shellings for more than a decade. On Taiwan, air raid shelters, gun emplacements, and many military structures are made of cement.
For the last four years, an average of 1,120,000 metric tons of cement has been consumed annually on Taiwan, 120,000 metric tons of it by the military.
Before World War II, the Japanese-occupied island had three plants. All were heavily damaged in bombings.
Taiwan Cement Corporation plant at Kaohsiung is the island's biggest producer. (File photo)
Because post-war reconstruction required large amounts of cement, the Chinese government gave urgent priority to rebuilding the industry. Machinery was brought from Japan, and the three companies were reorganized as the Taiwan Cement Corporation. Cement itself was rationed and imports brought from Japan.
Taiwan Cement Corporation at first was a government enterprise. It was placed in private hands in 1953 as a part of the land reform program. Landlords selling excess acreage to the government for resale to tenants were paid partly in stock of four government corporations, including TCC. At that time the company's worth was US$6,750,000. Twenty-seven million shares were paid to 80,000 ex-landlords.
Workers' Benefits
TCC expanded its plants at Kaohsiung, Chutung, and Suao, modernized equipment there, and built a new plant at Hualien. It has cut costs by making its own bags and mining its own coal. Yet its workers are among top wage earners and have such benefits as bonuses, profit sharing, pensions, and medical aid.
Quality of TCC cement far exceeds international standards. The American Society for Testing Materials demands a minimum of 3,500 pounds of compression strength per square inch after 28 days. The compression strength of TCC's Quality brand runs as high as 6,312 pounds.
TCC production of about 1.1 million metric tons annually includes Portland cement types I, II, and III. Type I is ordinary cement. Type II is generally known as moderate heat cement; it produces only moderate heat during the process of setting. It is used mostly for dam construction. The low temperatures during setting will not cause swelling or cracks. Type III is a rapid hardening cement and a new product. It attains the same strength and hardness as ordinary cement in half the time.
TCC's first important competitor was the Chia Hsin Cement Corporation established in 1954. Its southern Taiwan plant at Kangshan began production in October, 1957. Production is about 380,000 metric tons annually, ranking Chia Hsin second to TCC. Once the Kangshan plant was in operation, the government eliminated rationing but set a ceiling price of US$21 per metric ton.
Central control panel at Chia Hsiu plant. (File photo)
Export orders began to pour in from Southeast Asia. But with needs arising from 1959 flood damage, domestic demand again exceeded supply. The Asia Cement Corporation was established and began production in 1960.
Seven Other Plants
ACC received the first Development Loan Fund capital granted in Southeast Asia: US$3 million to be repaid in 11 years. The northern Taiwan plant is unique in having a 10-kilometer aerial cableway for transporting limestone. With new equipment and sound engineering, ACC has exceeded estimated production capacity by about one-fifth. The figure for last year was 301,000 metric tons and the 1963 estimate is 380,000.
Since 1960, seven other plants have come into existence. The newest is the Universal Cement Corporation, which began production last May. Its Ta-hun plant is equipped with Japanese machinery and operated under Japanese technical supervision. Production capacity of 180,000 metric tons ranks fourth.
On January 1, 1961, the government abandoned price control and the price since has been lowered. For exports it stands at US$14 per metric ton FOB.
Aerial carrier for limestone at one plant. (File photo)
Lo Hsi-king, secretary general of the Taiwan Cement Manufacturer's Association, notes that problems lie ahead for the industry.
"Home consumption is leveling off at about 1.4 million metric tons annually," he said. "That means we must export about 800,000 tons, or more than 40 per cent of production.
"Korea and Thailand now are buying only clinker from us. The Philippines and Vietnam are starting their own industries. Soon we shall find some of our old customers are competitors.
"I'm glad the government is banning new cement plants. That's one way. It is also interesting that some cement manufacturers have invested their profits in hotels and other enterprises. They have learned a lesson from textile over-expansion. The cement story will help the nation achieve sound economic policies in the transition from an agricultural society to an industrial one."