Following Russia's military invasion of Ukraine, companies are switching coal sources to countries other than Russia as the government says it will gradually reduce coal imports from Russia and eventually ban it. The movement is spreading.
Japan and Western countries are tightening economic sanctions against Russia's military invasion, and the government has indicated that it will gradually reduce coal imports as an additional sanction to Russia and eventually ban it. ..
Under these circumstances, companies are moving to switch coal sources to countries other than Russia.
Of these, Taiheiyo Cement, the largest in the cement industry, has imported about 60% of the coal used in the production process from Russia, but due to the situation in Ukraine, it is increasing procurement from Australia and the United States.
Following the government policy, we plan to further reduce imports from Russia.
Last year, Sumitomo Osaka Cement also imported about 80% of the coal used from Russia, but we are switching the procurement source.
On the other hand, Rengo, a major corrugated cardboard company, has used all of the coal produced in Russia so far, but plans to stop importing from Russia and switch to Indonesian products by the summer.
In the future, we will also promote efforts to reduce the amount of coal used.
In addition, there is a growing movement among steel makers and electric power companies to switch suppliers.
However, some companies are concerned about the further rise in coal prices, which may affect their profits in the future.