Displaying items by tag: Taiheiyo
Philippines: Chief executives from Eagle Cement, Taiheiyo Cement Philippines, Republic Cement, Cemex Philippines and Mabuhay Filcement have opposed government plans for a minimum requirement of pre-shipment inspection for cement imports. Instead they have called for a rigorous testing procedure for all cement coming from abroad to ensure consumer safety, according to the Philippine Star newspaper. In a letter Paul Ang, the chief executive officer (CEO) of Eagle Cement asked the government to draw up revised rules and guidelines on the issue for the cement industry. He also requested that the Department of Trade and Industry (DTI) and other agencies combat technical smuggling of cement.
In separate letters to the DTI, Taiheiyo Cement Philippines president and CEO Satoshi Asabi, Mabuhay Filcement CEO Enrison Benedicto, incoming Republic Cement president Nabil Francis and Cemex Philippines president Ignacio Mijares also argued against pre-shipment inspection in favour of testing imports upon arrival in the country.
Cement producers ‘waive’ inspection exemption
29 August 2017Philippines: Three of the Philippines' largest cement manufacturers have offered to waive their exemption from inspection procedures for cement imports, which are currently required only from companies that just import cement. They sent a joint letter to the Trade and Industry Secretary Ramon Lopez via Ernesto Ordonez, president of the Cement Manufacturers Association of the Philippines on 24 August 2017. In the letter, Taiheiyo Cement, Cemex and Republic Cement state that they are willing to undergo the same shipment inspection procedures as the traders. Ordonez said the offer was aimed at fostering industry harmony and ensuring adequate supply for the Duterte government's infrastructure push.
However, Atty Vic Dimagiba, president of consumer group Laban Konsyumer, said it was misleading for Ordonez to say that the cement firms have offered to waive their import shipment privilege because the Bureau of Product Standards of the DTI has already come up with a draft Department Administrative Order that will require all cement importers to undergo inspection procedures regardless of the company’s status. Existing legislation had come under fire as it allowed double standards.
Japan: Taiheiyo Cement has announced its summary financial results for the first quarter of its 2017-2018 fiscal year, which ended on 30 June 2017. During the quarter the group took US$1.82bn in revenue, leading to an operating profit of US$80.5m and a net profit of US$42.1m.
The group forecast that it would see revenues of US$7.76bn for the fiscal year ending 31 March 2018, with a net profit of US$318.5m.
Japan relies on cement exports
02 November 2016Two of Japan's largest cement producers have reported reduced domestic cement sales in the country this week. First, Taiheiyo Cement revised its forecast for its 2017 financial year, ending on 31 March 2017, bringing its estimated net sales down by 2.3%. Then, Ube Group reported that its cement sales had fallen by 7.2% year-on-year to US$1.05bn in the first half of its financial year. Both producers blamed poor weak demand locally, but Ube also cited a poor export market.
Graph 1: Domestic and export cement sales in Japan, 2006 - 2015. Source: Japanese Cement Association.
This last point is interesting because it differs from the latest data released by the Japanese Cement Association (JCA). As can be seen in Graph 1 JCA figures show that exports of cement have been rising since 2013. So far this trend looks likely to continue in 2016. Ube's different experience may arise from its market mix and its distribution of cement plants and transport infrastructure. Both of its cement plants are based in the south of the country. Commentators have attributed the boost in exports to the devaluation of the Yen in 2015 as well as strong brand perception overseas. Unfortunately, this overall rise in exports has been matched by a fall in domestic sales at the same time and this is causing a headache for the major producers. Production too has started to drop since 2014 (Graph 2).
Graph 2: Cement production in Japan, 2006 - 2015. Source: Japanese Cement Association.
Japan's cement market is dominated by four producers - Taiheiyo Group, Mitsubishi Materials, Ube Industries and Sumitomo Osaka Cement - which hold nearly three quarters of the nation's production capacity between them. According to Global Cement Directory 2016 data, Taiheiyo Cement and its subsidiaries is the market leader with over 30% market share with the other three holding 10 - 20% each.
Graph 3: Cement production capacity share in Japan (Mt). Source: Global Cement Directory 2016.
Taiheiyo's downgraded forecast follows poor first quarter results, in which its net sales for its cement business fell by 16% to US$1.19bn. This follows a slight rise in net sales for its cement business in its 2016 financial year due to a boost in sales from its overseas subsidiaries, particularly in the US, that surpass a fall in domestic sales. Sales volumes were 14.7Mt domestically and 4Mt in exports in 2016. Mitsubishi Materials has posted a similar picture with cement sales and profits rising in 2016 before suffering in the first quarter of 2017. Mitsubishi Materials blamed the poor market on a delay in construction work mainly due to labour shortages and sluggish growth in demand from the public sector. Ditto Sumitomo Osaka Cement.
As highlighted by such decision as Tokyo Cement's move to resume exporting clinker to Sri Lanka in early 2015, Japan's cement industry is working hard to compensate for falling demand at home. Increasing exports in Asia Pacific among other massive exporters such as China, Vietnam and South Korea is impressive, although the prominent foothold by Japanese companies in the recovering US market may offer some advantage here. On-going weak demand in China though cuts out one major market for Chinese exporters. However, being a major exporter in a region of major cement producers must be a concern. Although commentators such as Ad Ligthart dismiss the chances of China flooding the world with cheap cement, if they are wrong and Japan continues its reliance on exports it may find itself in deep water. The other risk is if the US authorities decide to get tougher on foreign exports it may knock out one more market for Japanese exports. Too much reliance on exports is always dangerous. In this context, it’s no surprise that Japanese cement producers are blaming the government for insufficient infrastructure spending.
Japan: Taiheiyo Cement has revised down its forecast for its net sales by 2.3% for its financial year that ends on 31 March 2017. It now expects to make net sales of US$7.67bn from US$7.85bn as originally estimated in May 2016 due to falling cement sales volumes.
Taiheiyo Cement reaches Dow Jones Sustainability Asia Pacific Index for second year in a row
20 September 2016Japan: Taiheiyo Cement has been selected for the second consecutive year as a component of the Dow Jones Sustainability Asia/Pacific Index (DJSI Asia Pacific) in 2016. The cement producer was also selected for the DJSI Asia Pacific in 2015. This index is the Asia Pacific version of the Dow Jones Sustainability Indices (DJSI) and serves as one of the key benchmarks for socially responsible investment.
The DJSI are investment indices developed and offered cooperatively by the US-based S&P Dow Jones Indices and Switzerland-based RobecoSAM, which evaluate the sustainability of companies in terms of economic, environmental and social criteria. The DJSI Asia Pacific has selected the top 146 regional sustainability leaders, including 68 Japanese companies out of about 600 leading companies, from developed markets in the Asia Pacific region.
CalPortland to celebrate 125-year anniversary
20 September 2016US: CalPortland will celebrate its 125-year anniversary, or quasquicentennial, on 21 September 2016. The company was established in 1891 in Colton, California as the California Portland Cement company, the first cement production facility west of the Rocky Mountains. Subsequently, the cement producer provided construction materials for the expansion of Los Angeles and the south-western US. Japan’s Taiheiyo Cement purchased the company in 1990.
"Today, CalPortland is building on its past for a bright and better future. Through key strategic mergers and acquisitions we have brought together more technology and the best people and now proudly serve six western states and two Canadian provinces. CalPortland is dedicated to using all of our resources to help make our customers successful," said Allen Hamblen, President and CEO of CalPortland.
Japan: Taiheiyo Cement’s revenue has fallen by 16% year-on-year to US$1.73bn in its first fiscal quarter which ended on 30 June 2016, from US$2.07bn in the same period of 2015. Its net profit more than doubled to US$151m from US$64.7m.
Japan: Taiheiyo Cement plans to build a 75MW biomass plant at its Ofunato cement plant in Iwate prefecture. The new unit will burn both domestic and imported biomass fuel. The new power plant will replace units damaged at the site during the earthquake in 2011. As such Iwate prefecture has decided there would be no requirement for a new environmental assessment.
US/Japan: Taiheiyo Cement Corp has announced that its California subsidiary CalPortland Co will buy North Carolina-based Martin Marietta Materials Inc's cement business in California for US$420m. Taiheiyo Cement aims to complete the acquisition procedures by the end of September 2015. The acquisition will allow the company to recoup the cement production capacity lost by the discontinuation of output at CalPortland's plant in Colton, California and to establish a cement supply system to meet growing demand in California, Arizona and Nevada.