Ube Industries prepares for further growth in domestic demand, Japan

Japanese cement producer Ube Industries is to develop a limestone mine in Yamaguchi Prefecture to prepare for further expected increases in cement demand.

This will be the company’s first mine development in 35 years and production is expected to start in 2017, according to a Nikkei Report. The mine has estimated reserves of some 300Mt and Ube Industries plans to operate the mine for about 40 years.

Ube Industries operates three plants with a combined clinker capacity of 7Mt and in FY11 its cement business continued to operate at full capacity.

Japanese cement consumption levels during 2012 have been increasing due to earthquake reconstruction and rebuilding. Sales have grown particularly in the Tohoku region due to very strong reconstruction demand The Greater Tokyo area has also seen  an increase in urban redevelopment projects. Last year, the Japanese Cement Association expect consumption to have reached 43Mt. In the the current fiscal year through March 2014 will grow 3.4 per cent on the year to 46Mt.