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Supply Chain Management


Fundamental Policy

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We believe that we grow along with our business partners. In order that we may build relationships of mutual trust and work in tandem with our business partners, our dealings with them are based on fair contracts and we strictly adhere to our agreements. We formulated our Business Principles to clearly establish our stance towards fair trade. They state “We will act in an ethical manner and abide by the laws and regulations of those countries in which we operate.” Accordingly, we affirm the following commitments in the “Dealing outside the company in good faith” section of our Standards of Conduct.

  1. We will conduct fair marketing and bidding, and not engage in unfair practices such as collusion and cartels.
  2. We will maintain appropriate and transparent relationships with our contractors.
  3. We will select business partners in a fair and equitable manner.
  4. We will not offer entertainment or gifts to customers that go beyond what is legally and socially acceptable.
  5. Our advertising, displays and briefing sessions will be honest and sincere.
  6. We will respond appropriately to customer feedback.
  7. We will maintain transparent relationships with governments and local authorities.
  8. We will respect the cultures and customs of the places where we operate. Our supply chain management is in accordance

with those commitments.

In addition, we established the Basic Policy Concerning Procurement in October 2017 to consolidate commitments 2 (“We will maintain appropriate and transparent relationships with our contractors”) and 3 (“We will select business partners in a fair and equitable manner”), and request ethical conduct from our contractors.

In response to the strengthening of international regulations against acts of bribery, and to strengthen our initiatives against corruption as stated in commitments 4 (We will not offer entertainment or gifts to customers that go beyond what is legally and socially acceptable) and 7 (We will maintain transparent relationships with governments and local authorities), we established our Anti-Bribery Policy in January 2017, and concurrently released a statement by our president proclaiming the group’s stance against bribery.


Taiheiyo Cement Purchasing Basic Principle

TAIHEIYO CEMENT will comply with the applicable laws and regulations, social code, “Mission of the Taiheiyo Cement Group’’, “Business Principles’’ and “Standard of Conduct’’, and will regulate our performances to realize social responsibility on purchasing which are explicitly stated in the following ‘’Purchasing Basic Principle’’.


Purchasing Basic Principl

Fundamental Policy

We will build relationships of trust and conduct a fair trade with opportunity and valuation in a fair and equitable manner under our ‘’Business Principles’’, “Standard of Conduct’’ and ‘’Dealing outside the company in good faith’’.

  1. Fair and equitable trade
    • We will comply with the applicable laws and regulations, and will conduct a fair and equitable trade.
  2. Human rights
    • We will not discriminate on the basis national origin, gender or other individualities. And we will pay regard to human rights.
    • We will not tolerate child labor or forced labor under any circumstances.
  3. Quality and environment management
    • We will strive to maintain quality and further improvement for our products with practical use of quality management systems.
    • We will regulate our performances for environment on purchasing with practical use of environmental management systems.
  4. Risk management
    • We will conduct purchasing to ensure stable supply for our products.
    • We will manage to protect confidential information such as individual, trade secret for business partners in an appropriate manner.
Expectations of Business Partners

Collaboration with business partners is an essential element in order to fulfill social responsibility. We kindly ask our business partners to observe the followings:

  • Compliance to the applicable laws and regulations, fair and equitable transactions,
  • Not to be engaged to child labor or forced labor and full consideration to human rights,
  • Secure health and safety and environmental preservation,
  • Ensuring stable supply , maintenance and improvement of quality,
  • Adequate management and protection for confidential information.
  • Created in 1st October 2017


Our Business Partners

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Our main business activities are involved with cement and concrete. Limestone is the main raw material used and group companies are largely in charge of such aspects as the operation and management of the quarries. Coal, however, which is a source of thermal energy and also part of the raw materials we use, is sourced from companies outside the group. Moreover, the waste and by-products that we recycle in our cement production process come from many different industries and a variety of locations.

Most of our production divisions are mechanized, and there are almost no labor-intensive processes. Tasks such as production equipment maintenance are outsourced to partner companies and contractors as and when necessary.

Our cement products are mainly marketed to building materials companies. Raw materials and products are transported by group companies and also companies outside the group.

In our business activities we strive to communicate closely with the local governments of the countries and regions where our business sites are located. We deem it essential that our supply chain respects human rights, in particular the banning of forced labor and child labor, complies with laws and responds to demands.


Safety of Business Partners Working at Our Production Sites

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Operations at our cement production sites and quarries are increasingly being mechanized. Since some tasks are performed in elevated places or at high temperatures, ensuring worker safety at our production sites is essential for stable operations. We do our best to ensure that employees of contractors working at our sites avoid any accidents. They receive various types of training when they start work at the site, are required to submit a work plan that includes a safety plan, and are given guidance with regard to that plan.


Strengthening Our Relationship with Our Customers

We place the highest priority on achieving greater customer satisfaction. Business units periodically exchange information and link up to strengthen production focused on quality that meets customer expectations.

We gather information about customer demands concerning product quality and services such as delivery from our sales and technical staff at branches and sales offices. We then analyze that information, make improvements, and provide feedback. To encourage overseas customers to adopt our high-quality products we have started to incorporate local needs into product quality, just as we do for domestic customers, and we are fine-tuning our products to meet the requirements of each overseas market. We respond sincerely to every quality issue raised by our customers, and strive to improve product quality and customer satisfaction. We actively identify potential quality risks, investigate their causes and implement stringent cross-divisional countermeasures with the aim of establishing an even more reliable quality assurance system.

In addition, we are expanding our quality assurance system to include the products of our group companies as well as Taiheiyo Cement Corporation products. We systematically strive to identify and address material issues via cross-divisional initiatives, and aim to boost the reliability of the Taiheiyo brand as well as customer satisfaction.


User Societies and Industry Associations

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We have founded and manage various cement user societies and industry associations that support them in vitalizing their business operations and developing technological competitiveness. The National Taiheiyo Cement Ready-mixed Concrete Society, the largest of these user societies, is made up of ten Taiheiyo Cement Ready-mixed Concrete Societies, in locations ranging from Hokkaido to Kyushu, and engages in various activities. We hold technical sessions and presentations, as well as conduct activities under specific themes suited to local conditions. We also focus on providing support for users in obtaining qualifications such as authorized concrete engineer, authorized chief concrete engineer, and authorized concrete diagnosis and maintenance engineer.

In addition to the Ready-mixed Concrete Society, we have established other associations such as the Taiheiyo Cement Association for the Paving Block Industry and SPLITTON Association Japan to proactively deliver technical support for the mutual development of concrete product companies. We will continue to support activities that benefit cement users.


Initiatives of the Taiheiyo Cement Association for the Paving Block Industry
 

Labor shortages are becoming more severe in various industries over the past few years, and the paving block industry also needs to take swift measures to boost productivity and save labor. Accordingly, this association is engaged in initiatives focusing on construction, a field where there seems to be a particularly large number of issues.

In other countries it is the norm for blocks to be constructed using specialized machinery, but in Japan there are still companies where such equipment has yet to be adopted and individual blocks are made manually by skilled workers. The Taiheiyo Cement Association for the Paving Block Industry therefore held a virtual tour on the internet to show the construction process using a German-made machine, and shared information with association members nationwide with the aim of encouraging the adoption of such equipment in Japan.

The association is already engaged in initiatives aimed at enhancing the performance of interlocking roadway blocks, and is now moving forward with the reappraisal of performance costs, trial construction and durability tests with the aim of establishing performance regulations.

The Taiheiyo Cement Association for the Paving Block Industry will continue to aim for sustainable growth, and will contribute to environmentally-friendly and pleasing urban development by promoting the use of paving blocks via its nationwide membership network.


Activities of the National Taiheiyo Cement Ready-mixed Concrete Society
Region Details
Hokkaido A survey of fixed-term certification maintenance reviews
Tohoku Published “Examples of Responses to Complaints Seeking Compensation & Preventive Measures, Plus a Compilation of the Forms Used by Each Company”
Tokyo Technical presentations given online and distributed in DVD format
Kanto Technical reviews at plants belonging to association members in each prefecture, publication of collected papers
Hokuriku Discussion of technical challenges and countermeasures at plants belonging to association members
Chubu Lecture in response to the JIS revision to “How to Create Samples for a Concrete Strength Test”
Kansai Survey regarding training drills
Shikoku “Ingenuity Contest” for examples of improvements to daily tasks at plants belonging to association members
Chugoku Published “100 Questions It’s a Bit Late to Ask about In-house Regulations”
Kyushu Published Q&A compilation “Exploring the Mysteries of Concrete!” (2nd Edition)
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