Taiheiyo Cement Corp said Wednesday that it plans to reduce domestic production capacity 30% by the end of fiscal 2010 to cope in part with the slow rebound in private-sector demand for condominiums and other structures.
With 12 domestic plants, including those of group firms and subcontractors, the cement maker has an industry-leading output capacity of 23.63Mt. But it is bracing for excess capacity of some 8Mt, or 30%, next fiscal year because of sluggish demand.
Taiheiyo Cement could consolidate and close factories, with specific plans to be drawn up by the end of March 2010.
Domestic demand for cement will decline 15% to 42.6Mt this fiscal year, Taiheiyo Cement estimates. And next fiscal year, "there is a high probability that demand could slip to around 40Mt because of further cutbacks to public works spending under the new Democratic Party of Japan-led government," Director Hiroto Murata explains.