Taiheiyo Cement Corp is introducing a system to centralize cash management within its corporate group.

Test operation of a cash management system was begun at the cement producer and 14 other group firms this fiscal year. The company aims to expand the system to cover more group firms next fiscal year, with 197 consolidated subsidiaries as candidates.

The company expects the benefits of the system to be significant because of the large number of subsidiaries. But because the group contains small-scale firms such as raw concrete producers, which companies will get the system has yet to be determined.

The cash management system will enable the group to lend surplus capital among its members.

Through this, the firm aims to reduce existing deposits by 30-50 per cent from its current level of 78.5bn yen (US$742.71 million) and use the extra funds to pay down interest-bearing debt.