Strengthening the earnings base and becoming a leading company in preparation for declining domestic cement demand

「Although a certain level of demand was maintained for national resilience measures, defense-related projects, urban development, plant construction resulting from the reshoring of supply chains, and the Linear Chuo Shinkansen, total domestic cement demand declined 6.1% year on year to 15.34 million tonnes due to the combined effects of soaring construction costs, chronic labor shortages, a substantial decline in Saturday shipments accompanying the expansion of the five-day workweek at construction sites, and schedule delays caused by summer heatstroke-prevention measures.」

「Regarding cement selling prices, we implemented a price revision of at least ¥2,000 per tonne above current prices for shipments from April 2025 and will continue to optimize selling prices.」

「Although a certain level of demand remained due to the extension of the Hokkaido Shinkansen to Sapporo, large-scale redevelopment projects, and new semiconductor-related plant construction, total domestic cement demand declined 6.0% year on year to 16.34 million tonnes due to the combined effects of higher costs, labor shortages, and delays in construction schedules and project starts caused by heavy rain, typhoons, and extreme heat.」

「In a market environment where the decline in domestic cement demand is continuing, we will pursue the revitalization of our domestic business by fundamentally reviewing our pricing policy with a focus on profitability, providing total solutions through a more efficient sales structure, expanding exports of blended cement, and optimizing our production structure on the premise of stable domestic supplies.」

「Although demand remained for urban redevelopment and logistics facilities, domestic cement demand overall remained weak due to chronic labor shortages at construction sites, higher prices for materials and labor, delays in project starts, and lengthened construction periods. Total demand declined 6.6% year on year to 26.70 million tonnes.」

「Although a certain level of domestic cement demand remained due to urban redevelopment and the active construction of new and expanded logistics facilities, demand overall remained weak due to higher material prices and labor costs, as well as schedule delays and lengthened construction periods caused by shortages of skilled workers at construction sites. Total demand declined 6.5% year on year to 17.39 million tonnes.」

「Although a certain level of private-sector demand remained due to urban redevelopment, expressway construction, and the construction of new and expanded logistics facilities, shipments overall remained weak due to lower cement intensity resulting from higher construction labor and material costs, as well as schedule delays caused by work-style reforms in the construction and transport industries and shortages of skilled construction workers. Total demand declined 6.5% year on year to 8.57 million tonnes.」

「In a market environment where significant growth in domestic cement demand cannot be expected, we will maximize the Group's overall capabilities by implementing various measures, ensure stable supplies for national projects and other initiatives, and actively advance efforts toward achieving carbon neutrality.」

「Although private-sector demand remained at a certain level due to active urban redevelopment and construction of new and expanded logistics facilities, public-sector demand remained weak, as it had the previous year, due to unsuccessful or failed bids caused by higher material prices and labor costs. Overall demand declined 0.5% year on year to 18.59 million tonnes.」

「Private-sector shipments remained firm due to the accelerating redevelopment of urban areas and active construction of new and expanded logistics facilities. Public-sector demand remained weak, as it had the previous year, due to schedule delays and lengthened construction periods caused by persistently high material prices and labor costs. Overall demand declined 0.5% year on year to 9.17 million tonnes.」

「Although private-sector demand showed signs of a full-scale start to urban redevelopment projects, the recovery from the COVID-19 pandemic was weak. Public-sector demand was affected by unsuccessful or failed bids due to higher material prices and labor costs. As a result, both private- and public-sector demand remained weak, and total demand declined 2.0% from the previous period to 37.88 million tonnes.」

「Although the nationwide impact of the spread of COVID-19 on domestic cement demand was limited, public- and private-sector demand remained weak outside the Tokyo metropolitan area, where large-scale redevelopment projects recovered and exceeded the previous year. Overall demand declined 2.1% year on year to 28.98 million tonnes due to the completion of major construction projects and earthquake-reconstruction demand, among other factors.」

「Although private-sector demand showed signs of recovery, public-sector demand was weak, and domestic cement demand remained sluggish due to schedule delays and lengthened construction periods caused by shortages of construction workers, as well as severe weather. Total demand declined 1.8% year on year to 18.69 million tonnes.」

「Although the nationwide impact of COVID-19 on domestic cement demand was limited, public- and private-sector demand remained weak outside the Tokyo metropolitan area, where large-scale redevelopment projects recovered and exceeded the previous year. Overall demand declined 1.8% year on year to 9.22 million tonnes due to the completion of major construction projects and other factors.」

「In a market environment where significant growth in domestic cement demand cannot be expected, we will pursue the restructuring of our domestic cement business through flexible thinking and bold action. By strengthening plant facilities, establishing an integrated sales structure combining resources and environmental businesses, and optimizing our logistics system through AI and automation, we will maximize the Group's overall capabilities and fulfill our responsibility to ensure stable supplies for national projects and other initiatives.」

「Although the impact of construction stoppages caused by the spread of COVID-19 declined from June onward, public- and private-sector demand both remained weak due to schedule delays and lengthened construction periods caused by shortages of construction workers. As a result, total domestic cement demand declined 5.4% year on year to 29.61 million tonnes.」

「Although the impact of construction stoppages caused by the spread of COVID-19 declined from June onward, public- and private-sector demand both remained weak due to delays in the start of major construction projects and the effects of severe weather. As a result, total domestic cement demand declined 6.4% year on year to 19.05 million tonnes.」

「Domestic cement demand remained weak in both public- and private-sector demand due to continued sluggish demand since the second half of the previous fiscal year and the effects of the spread of COVID-19. Total demand declined 6.3% year on year to 9.39 million tonnes.」

「Domestic cement demand fell below the previous year in both public- and private-sector demand due to the winding down of demand related to the Tokyo Olympic and Paralympic Games and earthquake reconstruction, as well as the lengthening of construction schedules caused by shortages of construction workers nationwide. Total demand declined 3.8% from the previous period to 40.97 million tonnes.」

「Domestic cement demand has been trending downward in both public- and private-sector demand due to the peaking of demand related to the Tokyo Olympic and Paralympic Games and reconstruction following the Great East Japan Earthquake, as well as the completion of construction on the Yamba Dam, a special-demand project last year. Total demand declined 1.9% year on year to 20.36 million tonnes.」

「Domestic cement demand has been trending downward in both public- and private-sector demand due to the peaking of demand related to the Tokyo Olympic and Paralympic Games and reconstruction following the Great East Japan Earthquake, as well as the completion of construction on the Yamba Dam, a special-demand project last year. Total demand declined 4.0% year on year to 10.03 million tonnes.」

「Regarding the business environment surrounding the Group, demand in its core domestic cement business remains firm, supported by construction related to the Tokyo Olympic and Paralympic Games, redevelopment investment in urban areas, and disaster prevention and mitigation measures. Demand for the Linear Chuo Shinkansen project is also expected going forward.」

「We will pursue the early achievement of appropriate pricing while implementing thorough cost reductions to strengthen earnings power.」

「The Company will implement various measures to strengthen its earnings base in preparation for future declines in domestic cement demand and aims to become a dominant leading company.」

「The Company will implement various measures to strengthen its earnings base in preparation for future declines in domestic cement demand and aims to become a dominant leading company.」