Taiheiyo Cement to Exit Chinese Subsidiary Jiangnan-Onoda via Equity Transfer

An announcement from Taiheiyo Cement ( (JP:5233) ) is now available.

Taiheiyo Cement has agreed to transfer its entire 88.51% equity interest in Jiangnan-Onoda Cement Co., Ltd., a consolidated subsidiary in Nanjing, Jiangsu Province, to Nanjing Yida Zongheng Building Materials, resulting in Jiangnan-Onoda’s exclusion from the group. The subsidiary had already halted cement manufacturing and sales in 2023, and Taiheiyo plans to reinvest proceeds from the sale into future projects and regions, marking a continued withdrawal from its Chinese cement operations and a reallocation of capital aimed at strengthening overall corporate value.

Jiangnan-Onoda, established in 1993 with capital of about USD 134 million, has seen shrinking assets and volatile earnings, recording no net sales and recurring losses in recent fiscal years. The divestment underscores Taiheiyo Cement’s strategic reshaping of its overseas portfolio, which may reduce its exposure to a challenging Chinese market while potentially improving returns for shareholders if redeployed funds generate higher growth elsewhere.

The most recent analyst rating on (JP:5233) stock is a Hold with a Yen5042.00 price target. To see the full list of analyst forecasts on Taiheiyo Cement stock, see the JP:5233 Stock Forecast page.

More about Taiheiyo Cement

Taiheiyo Cement is a major cement manufacturer that produces and sells cement and related building materials, with a significant presence in Asian markets. The company operates through consolidated subsidiaries worldwide, using portfolio adjustments to reallocate capital toward regions and projects it views as more promising for long-term growth and corporate value enhancement.

Average Trading Volume: 471,186

Technical Sentiment Signal: Buy

Current Market Cap: Yen541.4B

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