Japan’s Taheiyo Cement plans to increase group operating profit by around JPY50bn (US$598.8m) in fiscal year 2014 (FY14), an increase of 90 per cent on its projection for the year ending March 31.
The Nikkei reports that the target will be included in a forthcoming business plan that runs through the year ending March 2015. The projections are based on total domestic demand rising four per cent to 43Mt in fiscal 2014. Japan’s leading cement producer anticipates a 2Mta boost from earthquake reconstruction and is likely to seek a 10-20 per cent profit increase underpinned by rebuilding demand.
The company’s Ofunato cement plant in Iwate Prefeture is currently running at about 70 per cent of pre-earthquake levels. The company is working towards operating at full capacity by the end of June.
Taiheiyo is also reportedly planning to shake up its sluggish US business which is expected to report an operating loss of JPY9bn this fiscal.