Mitsubishi Materials Corp. plans US growth

Bloomberg is reporting that Mitsubishi Materials Corp. plans to reopen its US import terminal in California’s Long Beach. In an interview with the company’s president of cement operations, Naoki Ono, Bloomberg learnt that the terminal could be restarted as soon as the second half of 2015. A second terminal in San Diego is also under consideration, while the company is reportedly also looking into acquisitions to expand its presence in the US.

In the interview, Ono said that operation profit for the Japanese firm would come largely from US operations, while domestic demand in Japan remains flat, despite preparations for the 2020 Olympic Games. Annual cement sales in the US are expected to reach 2 million t in 2016, significantly ahead of the 2010 low of 1.1 million t. Meanwhile, prices are also set to increase according to analysts, putting US cement companies in a more favourable position following several years of hard times. California is a particularly strong growth market thanks to increasing immigration and an improving economy.

Adapted from source by Katherine Guenioui

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