Cement manufacturers in Japan aim to upgrade their fleets to move more of the concrete ingredient throughout the country amid brisk demand from the reviving construction industry.
Starting early next year, three major producers are expected to spend more than 10 billion yen ($94.3 million) combined to acquire new and used vessels. Roughly 70% of cement is moved by sea.
Sumitomo Osaka Cement will spend 6.8 billion yen, first adding a large ship that can carry 8,000 tons in February and then purchasing two 2,000-ton ships and one 5,500-ton ship after April 2015. While the company will decommission three older vessels, all told, its fleet will expand to 20 ships with a combined capacity of 93,000 tons, up from this year's 19 vessels and 82,000 tons.
Ube-Mitsubishi Cement plans to begin sailing three new large ships, each with a capacity of roughly 7,000 tons to 12,000 tons, in February or later. The company is expected to spend about 1.5 billion yen on the additions, two of which will be newly built and the other rented.
Taiheiyo Cement will add three large ships for about 2 billion yen next year or later.
The Japanese cement market had been shrinking since the early 1990s, prompting manufacturers to slim down their fleets. The trend's reversal owes to resurgent construction in large cities, rebuilding after the 2011 earthquake and tsunami, and an anticipated uptick in demand ahead of the 2020 Tokyo Olympics.
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