OREANDA-NEWS. Taiheiyo Cement Corporation is pleased to announce that its subsidiary, CalPortlan Company, headquartered in Glendora, California (hereinafter, "CPC" ) has reached an agreement with Martin Marietta Materials, Inc., headquartered in North Carolina, and its subsidiaries (hereinafter, together, "Martin Marietta") to purchase the cement business formerly held in California by Martin Marietta.

CPC's purchase of these assets requires final clearance by relevant authorities, and Taiheiyo Cement expects the sale will be finalized within its second quarter of FY2015. 1. Reasons for the Acquisition: On May 12, 2015, Taiheiyo Cement released its three-year "17 Medium-Term Management Plan", covering FY2015, FY2016, and FY2017.

The Plan allocates, across these three years, 100 billion Japanese yen in group-wide capital investments intended to create and improve opportunities for profitability. The Plan calls for Taiheiyo Cement Group's overseas cement business to maintain and enhance its presence in the Pacific Rim by attaining an effective business scale (cement production capacity), specifically recommending improving profitability in its current business in the region and developing increased foreign trade to maximize Taiheiyo Cement Group's global logistics network.

In reference to its business in the United States, the Plan also announces Taiheiyo Cement Group's goal to improve profitability in its current business as it steadily transforms increasing demand into greater profit. This asset purchase from Martin Marietta will allow CPC to replace the cement production capacity lost by the discontinuation of cement production at its Colton Plant. In addition, it enables CPC to establish a supply chain to match the increase in cement demand in the California, Arizona, and Nevada region.

Moreover, with the addition of the Martin Marietta Group's cement plant in Oro Grande, California-situated near the major market of Los Angeles-to CPC's existing capacity (specifically, the Mojave Plant in California and the Rillito Plant in Arizona), CPC can further optimize its cement production and logistics, leading to an expected reduction in logistical outlays and optimization of production capability. As a result, the purchase will contribute to a steady improvement in sales volume and profit in Taiheiyo Cement Group's U.S. operations, with a final outcome of increased profitability.