By Leslie D. Venzon
MANILA, Aug. 10 (PNA) — Cement manufacturer Holcim Philippines Inc. is investing up to USD 40 million (over Php1.8 billion) to expand its production capacity from eight million metric tons (MT) to 10 million target by end-2016.
In a press briefing, Holcim Philippines President and Chief Executive Officer Eduardo A. Sahagun said the company was gearing up to improve its facilities in Calaca and Mabini in Batangas; and in Norzagaray in Bulacan.
Sahagun said the newly acquired Star terminal of Lafarge Republic Inc. can also enable the company increase its production capacity.
Last week, Holcim Philippines closed a deal to buy Lafarge Republic Inc.’s terminal in Manila and aggregates business in Rizal and paid Php3.09 billion for the assets. This was part of the completed global merger of their parent firms Holcim Ltd. and Lafarge S.A.
“We are reviving a lot of projects. Our Calaca plant is easily adjustable to additional volume as well as the Mabini plant and the Star terminal. The Star terminal could double our capacity… (Cement) demand is growing, we have no option but to raise our supply,” Sahagun said.
He sees surging market demand on account of the public-private partnership (PPP) projects and as more infrastructure major players in the country announced expansion plans.
”The market prospects remain bright as construction activity expected to continue,” Sahagun said, attributing the growth to higher private construction activities and accelerated government infrastructure spending.
Holcim’s sales surged by 9.7 percent to Php9.4 billion in the second quarter of 2015 as its plants delivered production records to supply the robust cement demand driven by healthy construction activity nationwide.
Its net income improved by 1.6 percent in the second quarter to Php1.5 billion due to higher volume and prices.
Holcim’s first half profits reached Php3.0 billion, slightly lower than last year, due to the early implementation of plant maintenance activities and higher usage of more expensive imported clinker in the first quarter.
“Our investment in facility upgrades allows our plants to run longer before scheduled maintenance activities. This will pay off in the current market environment as we are able to meet the demands of customers,” Sahagun added. (PNA)