Taiheiyo Cement Corp. (5233) has decided to turn a cement manufacturing subsidiary into a company specializing in processing industrial waste. The major cement firm has been facing pressure to change its production structure because of declining cement demand. This latest move will enable it to keep plants open by using them for new operations.
In fiscal 2006, the subsidiary is expected to be transformed into a firm focusing on processing industrial waste into materials and fuel for cement production. The processed matter is to be supplied as raw materials to Taiheiyo Cement’s factories in Saitama Prefecture. Taiheiyo Cement hopes to improve production efficiency in the entire Kanto region around Tokyo.
The total investment on the project is estimated at more than 1 billion yen. The unit already has approval from the Environment Ministry to recycle rubber tires as well as meat-and-bone meal. It currently uses 600kg of industrial waste for every ton of cement produced, far exceeding the industry target of 400kg per ton for 2010. The average for all plants in the Taiheiyo Cement group was 340kg per ton in fiscal 2004.
