Reconstruction efforts to boost operating profit, Japan
Taiheiyo Cement Corp and Sumitomo Osaka Cement are both expected to post their highest operating profit in five years in fiscal 2012 due to reconstruction demand from the March 2011 disaster, according to reports from the Nikkei.
Taiheiyo Cement, the domestic leader, is expected to post a profit of JPY37bn for the year to March 2013, while Sumitomo Osaka Cement is expected to report roughly JPY10bn.
Domestic cement demand is projected to grow 1% to 43Mt this fiscal year, its second consecutive year of rise, according to the Japan Cement Association. With reconstruction seen continuing for another three to five years, domestic cement demand is expected to keep growing gradually. An estimated 2Mt of cement will be used to rebuild from the 2011 earthquake and tsunami.