Global Strategy
In April this year, to build a truly international network in our business, we renamed the former Overseas Business Division as the Global Business Division. The change reflects a shift from a Japan-centered perspective to a genuinely global one.
In regions where we already operate, such as the United States, Vietnam, and the Philippines, as well as in Indonesia and other areas where we expect further business expansion, we will place greater emphasis on on-site initiative and creativity in order to respond swiftly to rapidly changing geopolitical and economic risks.
We also aim to further enhance our presence in the global market by strengthening exports of FA blended cement from Japan, expanding triangular trade, diversifying export destinations, and increasing the handling of supplementary cementitious materials (SCMs).
Market Environment
United States
- Continued Population Growth and Economic Expansion
Southeast Asia
- Potential for Economic Growth
Global Market
- Global Trend Toward Carbon Neutrality in the Global Market
Risks
- Slower construction demand in the U.S. due to the high interest rate policy
- Tariff policy under the Trump administration
- Capacity expansion and new market entrants among competitors in the Asian market
Opportunities
- Increased infrastructure investment and foreign investment in the U.S.
- Shift toward low-carbon blended cement markets on the U.S. West Coast
- Growing cement demand and rising need for blended cement in Southeast Asia
Strengths
- Well-balanced portfolio across the Pacific Rim
- Vertically integrated business encompassing cement, SCMs, aggregates, and ready-mixed concrete on the U.S. West Coast
- Export of blended cement utilizing fly ash from Japan
- Strong credibility and network built through long-standing trading operations
Governance
- Defensive governance: Establishment of anti-bribery measures and internal reporting systems, and implementation of the “three lines of defense” (business execution, risk management, and internal audit)
- Proactive governance: Pursuing growth opportunities while minimizing risks
- Human resources underpinning governance: Developing personnel who earn the trust and respect of local communities in the regions where we operate
Strengthening the earnings base of existing businesses
| Region | Progress status |
|---|---|
| United States(SCMs/blended cement business) | In response to the growing adoption of low-carbon cements, we are leveraging the trust built through our long-standing trading operations to expand the SCMs and blended cement business. To this end, a large receiving silo is under construction at our terminal in Northern California, scheduled for completion in February 2026. |
| United States(Aggregates/ready-mixed concrete company acquisition) | CalPortland has strengthened its business foundation through vertical integration from upstream to downstream operations by acquiring aggregates and ready-mixed concrete assets from Grimes Rock and its affiliated companies. |
| Vietnam(Enhancing competitiveness) | Amid intense market competition, we are working to maximize exports to the United States while implementing cost-reduction measures such as expanding the use of low-grade coal and introducing a waste heat recovery power generation facility (scheduled for completion in May 2027). |
| Philippines(Plant renewal) | Following the completion of the plant renewal, the production capacity has been expanded to 3 million tonnes per year. We aim to further increase cement sales by leveraging the advantages of our high-efficiency facilities. |
Further expansion of business domains
| Region | Progress status |
|---|---|
| Indonesia(Deepening partnerships) | Led by our local subsidiary, we are working to deepen our partnership with PT. Solusi Bangun Indonesia Tbk. through initiatives such as launching exports from the company’s Tuban Plant to the United States and collaborating in the ground improvement business. |
| United States, Southeast Asia, and Oceania | We are currently examining potential M&A opportunities based on information gathered through our trading and other global networks. |
Expansion of the trading business
| Region | Progress status |
|---|---|
| U.S. market | We are working to stabilize cement supply to the U.S. market and expand the sales of blended cement. |
| Export of blended cement from Japan | We aim to expand blended cement sales across Asia by utilizing the Saiki Ash Center in Saiki City, Oita Prefecture, which has newly installed facilities for producing and shipping FA blended cement. |
Topics
Renewal of production line at Taiheiyo Cement Philippines, Inc.
In November 2020, we decided to renew the production line at Taiheiyo Cement Philippines, Inc. Despite the challenges posed by the COVID-19 pandemic, construction progressed steadily, and a completion ceremony was held in July 2024. Approximately 80 attendees participated in the ceremony, including senior officials from the Philippine government and representatives from the Embassy of Japan.
The Philippines is experiencing remarkable economic growth, with infrastructure investment advancing under the Marcos administration’s “Build Better More” initiative. The renewal of the production line has increased annual cement production capacity to 3 million tonnes and introduced state-of-the-art technology, enabling the stable supply of high-quality cement made with Japanese technology while also contributing to reducing environmental impact.
Furthermore, Taiheiyo Cement Philippines, Inc. is constructing a new cement terminal on Luzon Island to strengthen its market presence in the Philippines.
[Special Feature: Dialogue] Global Business
[Special Feature: Dialogue] Voices of Local Leaders on “Growth Strategy for the U.S. Business”
Revitalization of Domestic Business
As Japan’s leading cement supplier with a long history, we recognize our mission is to maintain the ability to provide a stable supply of cement across the country, including for disaster recovery and measures to strengthen social resilience. In addition, we accept not only waste and by-products generated by local communities and other industries but also waste resulting from natural disasters as raw materials and fuel for cement production, thereby contributing to the creation of a circular economy and the recovery of affected areas.
Under the 26 Medium-Term Management Plan, we will continue working to optimize cement prices and enhance our presence in the domestic market. By shifting our focus from market share to profitability, we aim to revitalize our domestic cement business with a target operating profit margin of 10% or higher.
Market environment
- Domestic cement demand continue to decline while there is steady demand from major projects such as the Hokkaido Shinkansen extension to Sapporo, large-scale urban redevelopment, and new semiconductor plant construction, factors such as a chronic labor shortage, the wider adoption of a five-day work week, soaring construction costs, and shortages of lightweight aggregates have combined to suppress demand.
- Adverse weather conditions — including torrential rain caused by typhoons and linear precipitation bands, and heavy snowfalls along the Sea of Japan coast — have also weighed on demand.
- Due to an imbalance between supply and demand, although order backlogs on the supply side are accumulating, progress in completing them has been slow.
Risks
- Decline in domestic demand
- Rising manufacturing costs, environmental protection expenses, and soaring labor costs
- Population decline and labor shortages
- Aging production facilities
- Decarbonization challenges and volatile energy prices
Opportunities
- Maintenance and renewal demand for aging infrastructure
- Contribution to a circular economy (e.g., environmentally conscious products)
- Introduction of new technologies (such as C2SP kiln)
- Increased operating profit through revisions to cement sales prices
- Advancement toward a more resilient society
- New investments resulting from reshoring of supply chains
Strengths
- As a leading cement supplier with a long history, the Company provides a stable supply of cement.
- There are no alternative materials that can replace cement.
- By accepting not only industrial and community-generated waste and by-products but also disaster-related waste as raw materials and fuel for cement production, the Company contributes to solving social issues such as promoting a circular economy and supporting disaster recovery efforts.
Fundamentally revise pricing policy
| Outline of Strategy | Progress status |
|---|---|
|
In FY2025, the effect of a total price revision of ¥5,000 per tonne was realized, resulting in a significant improvement in profit and loss. However, profits have since been squeezed by factors such as further increases in transportation costs, maintenance and renewal expenses for aging facilities, and rising labor costs. Effective from shipments in April 2025, an additional price revision of ¥2,000 per tonne was implemented, which has been well received and is quickly gaining acceptance among users. |
Provide total solutions
| Outline of Strategy | Progress status |
|---|---|
| We will shift from the conventional sales approach in which multiple representatives independently relied on their own knowledge and expertise, to a sales model that offers total solutions to customers through a one-stop service and sales DX. This transition aims to enhance customer satisfaction, reduce expenses, and revitalize our domestic business. | We have launched the development of a platform to share information between the Cement Business and the Resources Business, where overlapping customers exist. |
Optimize production systems
| Outline of Strategy | Progress status |
|---|---|
| While domestic demand for cement continues to decline, demand for blended cement is increasing, particularly in Southeast Asia. We aim to maintain the operating rate of domestic plants through the production and export of blended cement. | Along with upgrading fly ash export facilities at the Saiki Ash Center, we have also advanced efforts to enhance logistics efficiency by introducing AI-based ship allocation optimization as part of our DX strategy. The AI-assisted vessel allocation system began operation in May 2025 to support optimal scheduling and logistics efficiency. |
Topics
Introduction of environmentally friendly transport vessels
We are promoting the construction of new ships with excellent energy-saving performance, while also working in collaboration with shipping companies to develop additional energy-efficient vessels that use existing fuels.
Shift to AI-driven operations
To improve the efficiency of vessel allocation we have implemented AI-based scheduling, which has reduced fuel consumption and port charges. In addition, we are upgrading the AI engine to adapt to changes in the operational environment surrounding vessel allocation.
Launch of Blast Furnace Cement Type C
In September 2025, we began sales of “Blast Furnace Cement Type C”, a low-carbon blended cement with reduced CO2 emissions during manufacture of approximately 65%.
[Feature: Dialogue] — Revitalizing the Domestic Business as a Growth Driver
Mineral Resources Business
To ensure the long-term and stable supply of limited resources, we are engaged in quarry development with a vision looking 100 years into the future. Utilizing our overwhelming supply capacity and supply chain network from 13 domestic limestone quarries, we continue to maintain our competitive advantage not only in cement production but also in supplying aggregates and raw materials to a wide range of other industries, including ready-mixed concrete, steel, electric power, and lime manufacturing, while promoting higher added value. Furthermore, we are expanding the sale of solidification and stabilization materials such as “DENITE”, processing of surplus construction soil, and the development of functional material businesses such as ultra-high-purity silicon carbide (SiC) and functional hollow particles “CellSpheres”. By strengthening the comprehensive capabilities of the Group and maximizing synergies, we aim to establish a resilient earnings structure less affected by fluctuations in cement demand. In addition, we are actively promoting initiatives toward the realization of carbon neutrality.
Market environment
Aggregates Business
- Limestone is being used in “high-durability concrete” and “high-strength concrete”, and the number of projects specifying limestone aggregates continues to rise.
- As high-quality natural resources are becoming depleted, expectations for limestone aggregates are growing.
Mineral Products Business
- Domestic demand for steelmaking and paper manufacturing is declining.
- Conversely, exports of high-quality limestone to Taiwan and other Southeast Asian countries are showing a gradual increase.
Geo - Solutions Business
- The ratio of construction surplus soil being processed for use as cement raw material is decreasing.
- Meanwhile, strong demand continues for neutral solidification materials used in shield tunneling and related construction projects.
Risks
- Rising labor, material, manufacturing, and transportation costs
- The labor shortage problem arising from safety regulations limiting the overtime work of truck drivers, the so called “2024 problem” and compliance with work-style reform regulations
- Shipping and logistics issues: labor shortages and higher costs, as well as reduced fleet size due to aging vessels
Opportunities
- Overseas business opportunities, including the establishment of local resource operations including the acquisition of mining interests abroad
- Quarry development and capacity expansion projects
- New businesses leveraging advanced technological capabilities
- Provision of services in response to new or revised laws and regulations
Strengths
- High-quality limestone supplied for steelmaking, chemical, and paper industries
- Stable supply of aggregates and mineral products
- Strong production capacity supported by 13 limestone quarries in Japan
- Extensive logistics network with numerous distribution bases, including in the Tokyo Bay area
- Development of new markets through the creation of added value from mineral resources
Strengthening existing core businesses
| Outline of Strategy | Progress status |
|---|---|
| Promoting the sustainability of production facilities and the supply chain to ensure a stable supply of mineral products. | The increase in costs are being passed on through price adjustments, while stabilizing production and logistics ensures a steady supply. At the Tosayama Mine, which has high-quality limestone deposits, capacity expansion work for steelmaking products is underway, and once completed, the site will serve as a shipment base for both domestic and overseas markets. |
Enhancing profitability of affiliated companies
| Outline of Strategy | Progress status |
|---|---|
| Strengthen mutual complementarity and reciprocal relationships among group companies to maximize synergy effects. | The Mineral Resources Business Department operates affiliated companies across Japan and seeks to leverage each company’s strengths to generate profits through enhanced synergies. To this end, it is promoting integration and consolidation of similar businesses to improve capital efficiency and optimize the supply chain through unified efforts of production and sales. |
Establishing a framework for long-term stable supply of resources
| Outline of Strategy | Progress status |
|---|---|
| Steady implementation of development for the next mining area of limestone quarries | At the Niitsu-Kumi Mine and the Tanoumi Mine, construction work for new mining areas is underway. In addition, at the Niitsu-Kumi Mine, production of fine aggregates is being expanded, and at the Tosayama Mine, facilities are being reinforced to increase production of mineral products — all aimed at building a stable supply framework. |
Expansion of new domestic and overseas businesses
| Outline of Strategy | Progress status |
|---|---|
| Expansion of the functional materials business and growth of local subsidiaries in Vietnam and other countries. | In Vietnam, the company is expanding its gypsum sales business and focusing on sales of solidifying agents. As for functional materials, efforts are underway to expand operations through the full-scale commercialization of the functional hollow particle “CellSpheres” and high-purity silicon carbide (SiC) for power semiconductor applications. |
Topics
Full-Scale Operation of the Minamisode Aggregate Yard
In the resources business, we are developing operations tailored to the characteristics of each mine. The Minamisode Aggregate Yard (Chiba Prefecture) was completed in January 2025 and began full-scale operation in April. Going forward, we plan to mix and sell fine Chiba sand with coarser sand from the Niitsu-Kumi Mine (Oita Prefecture) to meet local demand. In addition, a dedicated 7,000-tonne grab bucket vessel is scheduled for construction in January 2027 to strengthen stable supply capacity through regular operations.
Environmental Business
The Environmental Business Development Department contributes to the conservation of natural resources and the extension of landfill life by substituting waste and by-products for natural raw materials and fuels used in cement manufacturing. In recent years, as domestic cement demand has declined, it has become necessary to adjust the intake of raw material–type waste; therefore, the company is also considering effective utilization outside cement plants. Meanwhile, there remains room for expansion in fuel-type waste, and the company is working with relevant parties to increase its intake. Furthermore, as part of its contribution to carbon neutrality, the company is focusing on expanding exports of FA blended cement, which reduces CO2 emissions, thereby promoting value creation that balances environmental and economic sustainability.
Market environment
- While fuel sales and plastic waste processing remained sluggish, coal ash treatment, limestone powder (TANKAR) sales, and biomass fuel sales were steady.
- Following the 2024 Noto Peninsula Earthquake, the company began accepting disaster waste.
- In FY2025, approximately 40,000 tonnes of wood waste were accepted at Myojo Cement Co., Ltd.
- In FY2026, an additional 20,000–30,000 tonnes are expected to be accepted.
- Competition for alternative heat energy sources intensified due to decarbonization trends.
- The company is working to address challenges related to increasing the use of waste plastics and recycled oils.
Risks
- Decrease in the amount of waste that can be accepted due to reduced cement production volume
- Shift of waste plastics toward chemical recycling and material recycling
- Promotion of carbon neutrality leading to a decline in the use of fossil fuels, which in turn reduces the generation of waste oil and recycled oil, while higher fossil fuel prices increase demand for these oils
Opportunities
- Utilization of difficult-to-process waste plastics and newly developed recyclable materials as alternative heat energy waste
- Establishment of business schemes that are not dependent on cement production, such as metal recovery from waste and phosphorus recovery from sewage systems
Strengths
- Advanced waste recycling and resource recovery technologies based on a proven track record of accepting and utilizing approximately 6.75 million tonnes of waste and by-products annually as raw materials and fuel
- Competitive advantage derived from safe and reliable waste treatment utilizing the characteristics of the cement manufacturing process
Expansion of Competitive Advantage in Existing Businesses
| Outline of Strategy | Progress status |
|---|---|
| Further focus on collecting waste that contributes to cost reduction, reinforcement of price reviews for waste treatment, and expansion of acceptance of waste materials as alternatives to thermal energy. | Facing challenges such as rising logistics costs and labor expenses in waste treatment, the company aims to carefully explain and gain users’ understanding of the need for higher waste treatment fees as part of its contribution to regional resource recycling. |
| Maximizing the use of the Ash Center and supporting the expansion of FA blended cement exports. | A new coal ash classification facility has started operation within the Saiki Ash Center. Even low-grade fly ash can now be used as a raw material for FA blended cement for overseas markets through appropriate particle size adjustment. |
Creation of New Added Value
| Outline of Strategy | Progress status |
|---|---|
| Promotion of initiatives to achieve carbon neutrality. | The company is working to secure coal ash, a raw material source for expanding exports of FA blended cement, while continuing to engage in a large-scale dairy farming project in Namie Town, Fukushima Prefecture. |
| Launch of new businesses contributing to the circular economy. | Started a waste solar panel recycling business at Nacode Co., Ltd.’s Sodegaura Recycling Center. In addition, the company continues its independent research on phosphorus recovery from sewage, conducted jointly with the Tokyo Metropolitan Government and Metawater Co., Ltd. |
Topics
Eco-Cement Facility
The company concluded an “Ecocement Facility Core Equipment Improvement and Operation Project Agreement” with the Tokyo Tama Wide-Area Resource Circulation Association. Under this contract, the company was awarded a renovation work contract for the main equipment of the aging Ecocement facility and as well as a new 25-year operation contract starting in FY2027.
New FA Blended Cement Production and Shipping Facility
The company has decided to establish a new FA blended cement production and shipping facility within the Saiki Ash Center, which will serve as an export base for blended cement. Shipment is scheduled to begin during the period of the 26 Medium-Term Management Plan
Construction Materials Business
The Building Materials and Construction Business consists of the building materials business, which manufactures and sells premixed products, concrete admixtures, repair materials, and building and civil engineering materials including ALC (autoclaved lightweight aerated concrete), and the construction business, which carries out reinforcement and repair work for concrete structures.
Major group companies include Clion Co., Ltd., whose main business is the manufacture and sale of ALC products; Taiheiyo Materials Corporation and Chichibu Concrete Industry Co., Ltd., whose main business is the manufacture and sale of premixed products; and Taiheiyo Techno Corporation, whose main business is the reinforcement and repair of concrete structures.
Although the business environment surrounding this segment is showing a declining demand trend due to the chronic labor shortage in the construction industry, we will continue to promote business diversification and efficiency while expanding operations through M&A and other means. In addition, we will work to achieve low carbonization of group company products by utilizing the Company’s carbon-neutral technologies.
Market environment
- Although domestic demand is declining, the prices of raw materials, fuel, and labor are rising. To strengthen the earnings base, each group company is steadily implementing appropriate pricing measures.
- As demand for the maintenance and repair of aging social infrastructure increases, the companies are considering expanding services in the infrastructure maintenance business in addition to promoting the sales of products and dissemination of construction methods that meet market needs.
- To expand overseas business areas, preparations are underway to introduce high-performance premixed products to the Southeast Asian market.
Risks
- Rising manufacturing costs due to soaring raw material and fuel prices
- Shrinking domestic demand
- Labor shortages resulting from the declining birthrate and aging population
- Response to decarbonization initiatives
Opportunities
- Increasing demand for maintenance and repair of aging social infrastructure
- Response to national resilience initiatives
- Products and construction methods that promote labor-saving, manpower reduction, and shorter construction periods
- Materials and solutions addressing carbon neutrality and environmental issues
Strengths
- The group companies offer a diverse range of products, covering everything from new structures to maintenance and repair of existing structures
- Development and market introduction of products that meet growing needs for labor-saving, manpower reduction, and shorter construction periods
- Expansion of business domains through group synergy by integrating the technologies and resources of each group company
Further strengthening of the earnings base
| Outline of Strategy | Progress status |
|---|---|
|
Group companies are advancing DX investments to address labor shortages and improve business efficiency, while also working to expand operations through M&A and other initiatives. |
Expansion into new business domains including overseas markets
| Outline of Strategy | Progress status |
|---|---|
|
Led by Taiheiyo Materials Corporation, group companies have begun full-scale discussions on expanding their business overseas. |
Launch of New Products Toward Carbon Neutrality
| Outline of Strategy | Progress status |
|---|---|
|
Taiheiyo Materials Corporation launched a low-carbon grouting material, “Taiheiyo Pre U-LOX GX.” The company also announced its participation in the Zero Carbon Island initiative in Yakushima Town, Kagoshima Prefecture, and is promoting the introduction of the Group’s low-carbon products as part of this effort. |
Topics
Preparing for increasingly severe natural disasters
Chichibu Concrete Industry Co., Ltd. developed a cavity-filling material called “Chichibu Reco Keep” in response to the Great East Japan Earthquake. This product is also used to fill cavities that form beneath roads due to factors such as leakage from aging sewer pipes and has seen growing demand in recent years. Taiheiyo Materials Corporation developed the “Shin-Wall Seismic Reinforcement Method,” which can be applied to structures that were previously difficult to reinforce due to site or construction constraints.
Technologies that enable labor savings, manpower reduction, and shorter construction periods
Clion Corporation’s factory-embedded “Anchor Panel” reduces the need for on-site anchor installation work, thereby helping to shorten construction periods. Taiheiyo Materials Corporation’s “Taiheiyo N-EX neo” shortens the time required for concrete finishing work. Chichibu Concrete Industry Co., Ltd.’s “Repair Finish” enables painting work on residential foundations to be completed in a single process instead of the conventional three-step procedure.
