Taiwan Cement: The Green Transformation Legend of Taiwan's First Listed Company

30-Second Overview

Taiwan Cement was founded in 1946 and became Taiwan's first publicly listed company in 1962. Stock code 1101 is now a legend of the Taiwan stock market. Transitioning from state-owned to private enterprise, it has been led across three generations by Koo Chen-fu, Koo Cheng-yun, and Chang An-ping, with 2024 revenue reaching NT$154.6 billion. Successfully transforming from a traditional cement company into a "green environmental engineering corporation," it is carving out new tracks in renewable energy, energy storage, and the circular economy amid global decarbonization pressure.

Among Taiwan's First Listed Stocks

On February 9, 1962, the Taiwan Stock Exchange officially opened. The first eight stocks listed included Taiwan Cement, with stock code 1101—the smallest code among the batch.¹

1101 has since become the starting code of the Taiwan stock market, and Taiwan Cement has become one of the longest-standing publicly listed companies in Taiwan's capital market history. Taiwan Cement was not the only company that prompted the establishment of the exchange—the first listings also included Taiwan Paper and Taiwan Agriculture and Forestry, among others. Taiwan Cement was one of the larger and more creditworthy members of the group.

1954: Privatization and the Gathering of Political-Business Families

In November 1954, Taiwan Cement was formally converted from public to private ownership. This privatization was a pivotal moment in the reorganization of Taiwan's post-war political-business families. Management rights were secured by the Koo family of Lukang. Through his wife's family connections with the Banqiao Lin family, Koo Chen-fu invited the most senior Lin Bo-shou to serve as the first chairman, while he himself participated in operations as associate manager.²

The shareholders' meeting was practically a grand assembly of Taiwan's political and business elite. Lin Bo-shou of the Banqiao Lin family was elected the first chairman, Koo Chen-fu of the Lukang Koo family served as associate manager, and the families of Wu San-lien of the Tainan faction, the Wu family of Shin Kong Group, the Lin family of Wufeng, and the Yan family of Keelung all participated in investing in Taiwan Cement. Nearly every important family in Taiwan at the time held shares in this privatization.

There was deep meaning behind this arrangement. The government needed prestigious families to underpin Taiwan Cement's privatization, while these families recognized the opportunity presented by Taiwan's economic takeoff. It could be said that Taiwan Cement's privatization shareholders' meeting was a microcosm of post-war Taiwan's political-business structure. It was not until 1973 that Koo Chen-fu formally assumed the chairmanship of Taiwan Cement, inaugurating a 30-year era under his leadership.

The Thirty-Year Legend of Koo Chen-fu

In 1973, Koo Chen-fu, leveraging his exceptional political-business relationships, won the support of the major families and formally assumed the chairmanship of Taiwan Cement. He held the position for 30 years—the most critical expansion period in the company's history.

Koo Chen-fu was a visionary entrepreneur. He understood that pure cement manufacturing had its limits and that diversification was essential. Under his leadership, Taiwan Cement evolved from a simple building materials manufacturer into a diversified corporate group, extending its business into petrochemicals, electronics, finance, construction, and other fields.

Koo Chen-fu actively pursued cross-industry investments, including early share investments in Taiwan Semiconductor Manufacturing Company (TSMC, founded in 1987), investment in the Taiwan High Speed Rail project (1990s), and Kaohsiung Hanshin Department Store, among others. These investments were mostly made at early stages of the respective companies' development, demonstrating his forward-looking awareness of Taiwan's industrial trends.³

His international expansion is also worth noting. In the 1980s, Taiwan Cement began investing in mainland China, playing a key role in cross-strait economic and trade exchanges. This decision was highly controversial at the time but proved remarkably forward-looking in hindsight.

Succession from Father to Son

In 2003, Koo Cheng-yun took over as chairman, ushering in the second generation of leadership at Taiwan Cement. Compared to his father, Koo Cheng-yun placed greater emphasis on technological innovation and environmental development.

Under his leadership, Taiwan Cement invested heavily in environmental protection equipment and promoted clean production technologies. More importantly, Koo Cheng-yun began contemplating the sustainable development of the cement industry—how to meet construction demand while reducing environmental impact.

In 2017, Koo Cheng-yun passed away unexpectedly, ending his 14-year leadership tenure. The results he accumulated in environmental transformation paved the way for Taiwan Cement's subsequent green transition.

Chang An-ping's Transformation Strategy

On January 23, 2017, Koo Cheng-yun died of cerebral edema at Cheng Hsin General Hospital following a fall at the Grand Hyatt Taipei (aged 62). That same afternoon, Taiwan Cement held an emergency board meeting to elect a new chairman, with Koo Cheng-yun's brother-in-law Chang An-ping taking over. Chang An-ping is the son of Chang Min-yu, founder of Chia Hsin Cement. He married Koo Chen-fu's youngest daughter, Koo Huai-ju, in 1978, and had 40 years of involvement in the cement industry. Upon taking office, he proposed a vision that shook the industry: transforming Taiwan Cement from a "cement manufacturer" into a "green environmental engineering corporation."⁴

This decision required tremendous courage. Cement was Taiwan Cement's core business, and undertaking such a fundamental transformation meant challenging the company's own core competitiveness. But Chang An-ping understood clearly that in the face of global carbon neutrality trends, the traditional cement industry had to find new development paths.

In May 2024, Taiwan Cement formally established its "four-legged" strategy: Taiwan and mainland China cement operations, low-carbon cement in Europe and Africa, new energy business, and resource recycling. This framework clearly demonstrates Taiwan Cement's transformation resolve—moving from single-track cement manufacturing toward diversified green services.

Transformation Results Behind NT$154.6 Billion

In 2024, Taiwan Cement delivered impressive results: revenue of NT$154.6 billion and net profit of NT$15.6 billion. Notably, a significant portion of this performance came from green energy and environmental protection businesses, showing that the transformation strategy is beginning to bear fruit.

Taiwan Cement's transformation has materialized into concrete business operations. Through Hoping Power in wind power development, through Neng Yuan Technology in energy storage technology, and through Dahe Environmental Protection in promoting the circular economy, these subsidiaries have become new growth engines for Taiwan Cement.

Particularly noteworthy is the energy storage business. As the share of renewable energy increases, energy storage has become a critical link in the power system. Through Neng Yuan Technology, Taiwan Cement has captured this market and now holds an important position in Taiwan's energy storage industry.

The Circular Economy Magic of Cement Kilns

Taiwan Cement's most unique competitive advantage is transforming cement kilns into core equipment for the circular economy.

Traditionally, cement kilns were merely tools for firing cement. But Taiwan Cement discovered that high-temperature cement kilns can co-process various waste streams, converting waste into raw materials or fuel for cement production. This "co-processing" technology allows Taiwan Cement to generate revenue from waste treatment while reducing the use of natural resources.

This innovative model has been successfully implemented at the Hualien Heping plant. Waste tires, sewage sludge, construction waste, and various other waste streams are "reborn" as useful resources under the high temperatures of the cement kiln. This represents both technological innovation and business model innovation.

Challenges and Opportunities in the Carbon Neutrality Era

The cement industry is carbon-emission intensive. Facing the 2050 carbon neutrality target, Taiwan Cement confronts unprecedented challenges. But crisis often brings opportunity.

Taiwan Cement's response strategy is multi-pronged: developing low-carbon cement technology, investing in carbon capture technology, increasing the proportion of alternative fuels, expanding renewable energy deployment... These efforts have begun to show results, with Taiwan Cement winning the Net Zero Industrial Competitiveness Award in 2024 as the best proof.

More importantly, Taiwan Cement does not treat carbon neutrality as a burden but as a transformation opportunity. Through the development and application of green technologies, Taiwan Cement is shifting from traditional manufacturing to technology services, from a cost center to a profit center.

76 Years Witnessing Taiwan's Construction Miracles

From its founding in 1946 to the present, Taiwan Cement has spent 76 years witnessing Taiwan's construction miracles. Taiwan's highways, MRT systems, Taipei 101, Taoyuan Airport... nearly all major construction projects have used Taiwan Cement's products.

It is worth noting that Taiwan Cement's development trajectory is a microcosm of Taiwan's economic development. Post-war reconstruction, economic takeoff, the shift from traditional manufacturing to high-tech industries, and the transition from a domestic market to international competition—at every stage, Taiwan Cement has been both a participant and a driver.

As Taiwan's first publicly listed company, Taiwan Cement has also witnessed the development of Taiwan's capital market. From stock code 1101 in 1962 to today's ten-thousand-point Taiwan stock market, Taiwan Cement has always been an important member of Taiwan's securities market.

The Transformation Trajectory of a Traditional Industry

Taiwan Cement's transformation path has several observable characteristics: the decision-making timeline preceded the tightening of carbon neutrality policies (2017, before Taiwan's 2050 net-zero emissions target was established); the transformation did not abandon the core cement business but used the co-processing capability of cement kilns as an entry point, simultaneously developing energy storage and renewable energy businesses; the low-carbon cement deployment in European and African markets also alleviated pressure from intensifying competition in the Taiwan and mainland China markets.

The global cement industry accounts for approximately 7-8% of carbon emissions (International Energy Agency IEA data), making it one of the "hard-to-abate" industries. Taiwan Cement's transformation is still ongoing, and its effectiveness requires long-term tracking.⁵

References