Taiheiyo Cement Corp. is redirecting its strategy towards the US and Southeast Asian markets following its withdrawal from China last year. The Japanese cement manufacturer aims to export up to 1 million tonnes of cement annually to the US from its expanded Indonesian operations.
The company has enhanced its Indonesian plant with export storage facilities and plans to construct a pier for ship loading. This site is expected to serve as an export base for both the US and Oceania markets. Indonesia’s status as a coal-producing country offers low cement production costs and the ability to produce low-carbon cement, aligning with rising US demand due to environmental regulations.
In Southeast Asia, Taiheiyo Cement invested 30 billion yen ($202 million) in 2022 to upgrade its plant in Cebu, Philippines, boosting annual production capacity to 3 million tonnes. The company is also developing a terminal for shipments to Manila, targeting a market share exceeding 10% in the Philippines.
This strategic shift comes as Taiheiyo Cement faces declining demand in its home market of Japan. Domestic cement demand fell 7% to 34 million tonnes in fiscal 2023, marking the fifth consecutive year of decline. The company’s pivot to international markets reflects a broader trend among Japanese cement producers seeking growth opportunities abroad.
