Loans for Acquisition of Ready-Mixed Concrete Business Assets from U.S. Company by Taiheiyo Cement Corporation
Supporting Overseas M&A of Japanese Companies

• Region: North America
• Manufacturing and Services
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: AMAKAWA Kazuhiko) signed today two loan agreements amounting to up to approximately JPY13.2 billion and approximately JPY26.3 billion (JBIC portion), respectively, with Taiheiyo Cement Corporation (Taiheiyo Cement). The loans are co-financed with Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., and Sumitomo Mitsui Trust Bank, Limited, bringing the total co-financing amounts to approximately JPY29.3 billion and JPY58.6 billion, respectively.
     
2. The loans are intended to provide funding for Taiheiyo Cement to acquire ready-mixed concrete business assets in California from Vulcan Materials Company through its U.S.-based consolidated subsidiary CalPortland Company (CPC).
     
3. As cement is a fundamental material that underpins social infrastructure, Japan's cement industry needs to capture demand in high-growth overseas markets to maintain and enhance the industry’s business and technological foundations. Meanwhile, the Government of Japan aims to reduce CO2 emissions generated during the cement^*1 production process by promoting the wider adoption of green cement using supplementary cementitious materials (SCMs)^*2 and its international expansion.
     
4. Taiheiyo Cement is a cement manufacturer operating both in Japan and abroad, engaged in a wide range of businesses, from aggregates to ready-mixed concrete. As part of its strategy to deepen its U.S. business, the company is pursuing the integrated operation of cement, aggregates, ready-mixed concrete, and SCMs in the U.S. Through the acquisition, CPC has secured new ready-mixed concrete business sites in areas such as the San Francisco Bay Area. This will help CPC to strengthen its business on the U.S. West Coast and promote vertical integration of its supply chain.
     
5. These loans will support overseas M&A activities by Taiheiyo Cement, thereby contributing toward maintaining and improving the international competitiveness of the Japanese industry. In addition, the acquisition will expand the company’s sales and supply base in the U.S. This will facilitate exports of SCMs from Taiheiyo Cement’s plants in Japan and the supply of green cement from its group’s overseas operations to the U.S. market. As a result, the group is expected to accelerate its international business expansion by leveraging its own green cement production technologies, which aligns with the Japanese government's policy of capturing overseas demand.
     
6. As Japan’s policy-based financial institution, JBIC will continue to actively support overseas M&A activities of Japanese companies and their overseas business expansion in collaboration with private financial institutions.
     

Note

1. *1 
   Green cement refers to cement products that reduce CO2 emissions, compared with conventional Portland cement. It includes blended cement manufactured by blending and grinding clinker, an intermediary material produced in cement manufacturing, with SCMs.
2. *2 
   SCMs are alternative materials, including blast furnace slag and fly ash, used as partial replacement materials during cement production and ready-mixed production.