[Company analysis] Taiheiyo Cement Corporation (太平洋セメント)

「Taiheiyo Cement Corporation (太平洋セメント)」was established in 1998 by the merger of「Onoda Cement Co., Ltd.(小野田セメント)」and「Nihon Cement Co., Ltd.(日本シメント)」. And now they become the one of the Japanese bigest cement manufactuer along with「Ube Mitsubishi Cement(宇部三菱シメント)」and「Sumitomo Osaka Cement Co., Ltd. (住友大阪セメント)」The number of consolidated employees is approximately 12,574.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Taiheiyo Cement Corp.
Company name (Japanese)	太平洋セメント
Date of establishment	May 1881
Headquarters location	東京都港区台場2-3-5　台場ガーデンシティビル
Capital	86,200
Consolidated sales	916,071
Consolidated operating profit	66,012
Consolidated total assets	1,034,428
Consolidated capital	450,645
Capital adequacy ratio	43.6%
Consolidated number of employees	12,574

 

 

 

2. Summary and Features

 
「Taiheiyo Cement Corporation」is a supplier of basic materials (cement, concrete, etc.) that support social infrastructure in Japan. Especially, in the Japanese cement industry, this company is the leader who has a market share of approximately 35%. They are expanding not only domestically, but also overseas, in particular, they are focussing on the Pacific region.

Of course, they are also promoting the recycling of cement, which is the recycling of waste materials as cement raw materials. In 2016, approximately 6,450 tons of waste has been recycled into resources by their hand. Generally, about 400 kg of waste is reused to produce 1 ton of cement. One of the features of「Taiheiyo Cement Corporation」is that they also uses waste for biomes power generation.

In its main business, the cement business, this company has nine production bases in Japan domestic, and all of them uses the most advanced power generation equipment at each production plant, showing the highest energy efficiency in the world. Sales of「Taiheiyo Cement Corporation」are increasing each year by cement and environmental businesses.  

As for the oversea business, they have three overseas locations in the West Coast of the United States, and three others in China, and one in Vietnam and one in the Philippines. In fact, it is difficult to export cement to foreign countries if they produce cement only in Japan. To overcome this, they conduct remicon business too. Apart from the direct exports from Japan, this company also carry out triangular trade.

 

 

 

3. Major Business

 

■ Cement business
「Taiheiyo Cement Corporation」consistently handles everything from production to distribution and sales. As long as the demand for cement is constant, they can make stable profits.

■ Resource business
They supply limestone products mainly for high quality limestone resources for cement raw materials, construction and chemical applications.

■ Environmental business
Based on their original technology at the cement factory, this company uses domestic garbage, general waste, and industrial waste as raw materials for cement.

 ■ Construction and civil engineering business
This company allso handles construction materials such as concrete products that are essential for construction sites.

 ■ Construction 3D printer business
Recently,「Taiheiyo Cement Corporation(太平洋セメント)」 has started a unique business. In 2018, they partnered with 「Aktio(株式会社アクティオ)」, 「Ariake College(有明工業高等専門学校)」,and 「Taisei Corporation 」to jointly create a 3D printer for construction, "T-3DP(Taisei-3D Printing)". This is a construction 3D printer that can use cement-based materials with a higher load, unlike conventional resin-based construction printers.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		798,588	871,113	916,071
Consolidated operating profit		63,235	65,129	66,012
Consolidated total assets		1,015,415	1,022,142	1,034,428
Consolidated net assets		400,034	432,326	450,645
Breakdown of sales	Cement business	546,891	601,598	636,385
	Resource business	58,559	58,185	59,401
	Environmental businee	70,405	82,964	85,081
	Construction and civil engineering business	69,912	73,210	77,940
	Others	52,819	55,153	57,263