Mitsubishi Materials, a manufacturer of cement products, copper and aluminum products, cemented carbide tools, and electronic materials, agreed to acquire the cement manufacture and wholesaling business of Ube Industries, a Japanese chemical company, for $1.7bn. The companies have decided to explore merging their cement operations following slowing demand and increased costs due to higher energy prices. They have worked together since 1998 in a joint venture called Ube-Mitsubishi Cement, which integrated their cement sales and logistics operations.