Cement distributor TCC remains bullish despite slowdown by construction firms

Cement distributor TCC Hong Kong Cement Holdings expects demand for cement in Hong Kong to drop about 5 per cent this year due to a slowdown in construction.

Managing director Wu Yih-chin said the cement sector would not be badly hit, although some property developers had slowed construction work or postponed new projects.

Executive director James Tsao said that before the property market slump, the industry had expected stable or slight growth in demand of between 3 and 5 per cent this year due to the completion of the new airport.

Mr Wu said Hong Kong would still have many construction works being undertaken, despite the slowdown in private sector construction. He pointed to infrastructure projects such as Tseung Kwan O Mass Transit Railway extension and West Rail, which would create huge demand for cement.

He was also confident that the Hong Kong Government would stick to its promise of increasing public housing supply.

'The negative impact will not be felt too badly as most concrete suppliers have orders on hand for at least 10 months,' Mr Wu said.

He said Hong Kong Cement would not be hit much by the downturn because it could import cheaper products from other Asian countries and should also benefit from the mainland market which had begun to pick up.