Japan: Taiheiyo Cement is aiming for a group operating profit of around US$600m in the 2014 fiscal year, an increase of 90% on its projection for the current fiscal year, which ends on 31 March 2012. The target will be included in an upcoming midterm business plan that runs through to March 2015. The underlying assumptions include total domestic demand rising by 4% to 43Mt/yr. Taiheiyo Cement anticipates a 2Mt/yr boost from earthquake rebuilding.
In its domestic business, the Japanese market leader is likely to seek a 10-20% increase in its profit that will be underpinned by reconstruction demand. The operations are expected to give a profit of more than US$360m for the current fiscal year.
Taiheiyo has reported that cement production at its Ofunato plant in Iwate Prefecture has returned to about 70% of the levels seen before the 11 March 2011 earthquake and tsunami disaster. The company is scrambling to repair the production base with an eye toward returning the facility to full capacity at the end of June 2012. In the autumn the firm will start producing high-tensile cement for use in repairing infrastructure in the disaster-hit Tohoku region.
Taiheyo Cement will also shake up its sluggish US business, which is on track for an operating loss of US$108m in the current fiscal year. On top of personnel reductions, the company will continue to sell land and make other downsizing efforts. An operating profit of US$120m for US operations is targeted by the 2014 fiscal year.
