Pacific Cement announced on the 28th that it would acquire assets such as a ready-mixed concrete plant in California from Vulcan, an American aggregate and ready-mixed concrete giant. The acquisition, worth $712 million (100 billion yen), is the largest in Pacific Cement's history. Against the backdrop of continued sluggish domestic cement demand in Japan, Pacific Cement plans to grow its business by expanding its data center, power infrastructure and residential construction businesses in the U.S. market.
Vulcan is headquartered in Alabama, USA, with 41 ready-mix concrete plants and 2 cement terminals in California. Pacific Cement plans to complete the acquisition through its U.S. subsidiary. In fiscal year 2024, the sales of the acquisition target business are about 520 million US dollars. Pacific Cement plans to complete the acquisition in December 2025.
Pacific Cement currently has three cement plants in California and has been expanding its ready-mix concrete business and aggregate business centered in the southern part of the state. In December 2024, the company also acquired aggregate quarries and ready-mix concrete plants in Ventura County, California. The acquisition will allow Pacific Cement to further expand its ready-mixed concrete business in northern California, such as San Francisco, where it has not previously been involved. After the acquisition, Pacific Cement will have a total of 110 ready-mix concrete plants in the United States.
When ready-mixed concrete is used on the construction site, it needs to be delivered before setting, so shortening the transportation distance and stabilizing the supply are the key to enhance competitiveness. Ready-mixed concrete has a higher profit margin compared to the cement business. Pacific Cement is expected to increase its profitability in the U.S. market by launching cement, ready-mix concrete and aggregates businesses simultaneously.
In the US market, the expansion of infrastructure investment during the Trump administration has provided favorable conditions for Pacific Cement. Investment in AI-related data centers and power infrastructure is expected to increase in new northern California. In addition, the renewal of aging ports and bridges and the increase in demand from the 2028 Los Angeles Olympic Games are also expected. Demand for homes is also strong in the
United States, where there is a shortfall of about 4 million homes because construction has not kept pace with population growth. It is predicted that it may take seven years to solve this gap. Residential demand is expected to remain high in the future, although residential construction has slowed down due to high interest rates.
In contrast, Japan's domestic market is facing challenges. In fiscal year 2024, Japan's domestic cement sales volume was 32.63 million tons, which was lower than previous year for six consecutive years, and the market showed a shrinking trend. Factors such as labor shortages and construction delays caused by rising prices of construction materials have affected the market. In this case, Pacific Cement increased its profitability by expanding its U.S. operations.
Although many Japanese companies have announced investments in the United States on the occasion of President Trump's visit to Japan, Pacific Cement said the acquisition had nothing to do with President Trump's visit to Japan.
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