Taiheiyo Cement has ended a Chinese joint venture with a Xinjiang-based company in response to government efforts to cut excess capacity in the cement sector.
Following calls by Beijing to curb investment in the cement industry to ease oversupply concerns and given the business environment in the regional industry, Taiheiyo and Xinjiang Tianye decided to break off the agreement, according to a Nikkei Report.
The joint venture agreement had initially been signed at the end of 2012 between Taiheiyo Cement (China) Investment, the Chinese arm of Japan’s cement market leader and Xinjiang Tianye at the end of 2012.
