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Total domestic cement demand in FY2017 was 41,876 thousand tons (100.2% of the previous term), which was almost the same as the previous year. On the other hand, cement exports amounted to 11,808 thousand tons (102.4% compared to the previous term). Despite steady private demand due to increased private capital investment, the demand for domestic cement was lacking momentum, so the total demand for domestic cement was initially assumed to be less than 1,000 thous tons.
Demand trends in our shipping area fell sharply from the previous fiscal year in Kyoto Prefecture, but Shiga Prefecture increased slightly from the previous fiscal year, and our local Fukui prefecture showed a dramatic increase of 111.2% compared with the previous fiscal year. This is due to the fact that the Hokuriku Shinkansen extension work has reached full-scale, and in FY 2018 it is also expected to extend the Hokuriku Shinkansen and construction work for nuclear power plant safety measures.
As for the business outline of our company in FY2017, the sales volume of cement sold to Fukui Prefecture was 267 thousand tons (114.3% compared to the previous term) due to favorable sales of the Hokuriku Shinkansen extension work and the Kawachi River dam etc. However, Shipping shipments to the San-in area sharply declined due to the construction of quays and factory breaks, and the volume of cement shipment was 592,000 tons (94.0% compared to the previous term). Meanwhile, the Materials Division posted a downward trend compared with the previous quarter due to the maintenance of Tankar's main sales outlet, Hokuriku Electric Power Co., Tsuruga Thermal Power Station Unit No. 2, but main products such as silica, solidified material, anhydrite and limestone grew steadily Exceeded the previous term. On the other hand, in terms of cost, we reduced costs by reducing the logistics cost of limestone, increasing recycling processing, stabilizing the kiln and other factors, but as a result of the considerable increase in the unit cost of electricity in addition to coal prices, manufacturing costs have increased.
Our company has a great advantage of utilizing and processing waste generated from other industries and communities utilizing the characteristics of the cement manufacturing process, and in addition, the waste is diverse and in large quantities. In this way, we are committed to contributing to environmental preservation and environmental impact reduction through business activities. In fiscal 2017, our efforts on environmental management were newly launched with a limestone carrier "Tsuruga-maru" with a weight of 10,400 t, as well as a new unloading crane. Such an approach to the environment was highly appreciated, and for the first time in the Hokuriku region for the first time in six years we got the environmental rating of the Development Bank of Japan. Also, in February 2018, we received recognition from the Ministry of Economy, Trade and Industry for a health-conscious superior corporation for the second consecutive year. The Group aims to promote environmental management and create a bright and healthy workplace, aiming to be a corporate group that contributes to the community.
Through this environmental report, we ask for your continued guidance and encouragement as well as understanding our business activities.