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In the 1950s, Japan was solidly on the path of reconstruction following World War II. The country was making the transition from reconstruction to sustainable growth, and from regulation to deregulation. Japanese industry was getting more and more competitive. One significant change brought by the deregulation was the so called “energy revolution,” the conversion from coal to oil as the primary energy source following the deregulation of oil sales. Demand for coal plummeted and a number of major Japanese coal mines closed. Sumitomo Coal Mining, fearing a similar fate, started looking for new business opportunities to assure its survival.
In 1962, Sumitomo Coal Mining launched a plan to build a new cement factory adjacent to Iwaki Cement. The president of Iwaki Cement proposed a plan under which his company would provide technical and management support for the new factory.
Iwaki Cement was already among the top three domestic cement manufacturers, supplying this essential material to support social infrastructure projects such as roads, ports, and dams; however, management felt that if a major company from the Sumitomo Group entered the cement industry, upheaval would follow, not only for Iwaki Cement, but for the whole industry. The company decided that actively forming an alliance with the Sumitomo Group would enable it to lead the industry and best contribute to Japanese society during a period of rapid growth. The president of Iwaki Cement at the time was quoted in a newspaper as saying, “We believe forming an alliance with the Sumitomo Group is the best course we can take for our industry, our company, and our employees.” In 1963, following the merger of a cement company incorporated by five Sumitomo Group companies with a subsidiary of Sumitomo Coal Mining that held limestone mining rights, Iwaki Cement changed its name to Sumitomo Cement and became a major component of the Sumitomo Group. |
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Ako Plant
Ako Plant in Hyogo, the large coastal plant, with an annual capacity of four million tons. |
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Towers of Ako Plant
The kiln rotates dynamically amid giant towers. |
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