Mitsui to pull out of cement business

Mitsui to pull out of cement business
Published: 30 November 2004

Mitsui Japan has decided to withdraw from its cement business because of poor earnings prospects, The Nihon Keizai Shimbun learned Monday. The major trading house plans to stop doing business with Taiheiyo Cement Corp and Denki Kagaku Kogyo KK in such areas as domestic sales and exports of ready-mixed concrete. The firm is also considering divesting its stakes in joint ventures that do business in such countries as China. Mitsui generates annual revenue of 45 billion yen (US$438.4m) from its cement business, with gross profit at around 700 million yen. The company expects profit from its cement business to keep shrinking, partly because cement manufacturers are increasingly inclined to bypass trading houses and opt for direct transactions with customers.