Taiheiyo’s Jiangnan-Onoda suspends cement business in Nanjing, China

Taiheiyo Cement Corp announced that its consolidated subsidiary Jiangnan-Onoda Cement Co Ltd has decided to suspend the cement manufacturing and sales business in Nanjing City, China.

The competitive environment in China has become increasingly challenging due to the technical advances in local capital and the expansion of the scale of its production base. Therefore, Taiheiyo Cement has decided to suspend the operations of Jiangnan-Onoda Cement to focus on the policy set out in the group’s 23 Medium-Term Management Plan. The plan, which dates from May 2021, et out the basic policy for overseas business and the "construction of a new business portfolio in the Asian region", especially in Southeast Asia, in addition to considering the group’s portfolio.

Taiheiyo Cement Corp owns 88 per cent of Jiangnan-Onoda Cement’s capital.

In the FY21-22 (ended 31 March 2022), Jiangnan-Onoda Cement’s net sales profit reached JPY708,201m (US$5181.9m). Operating profit reached JPY46,701m. The profit attributable to the parent company was JPY28,971m. The consolidated financial results forecast for FY22-23 indicates a net sales profit of JPY810,000, an operating profit of JPY4000m and a loss attributable to the parent company of JPY26,000m.