Eagle, EEI sign cement supply deal
Eagle Cement Corp. and EEI Corp., a construction company led by the Yuchengco family, agreed to expand their cement supply agreement in anticipation of increased construction activity spurred by the government’s massive infrastructure program.
Eagle Cement said in a statement the new deal was set to strengthen the two companies’ existing partnership.
EEI vice president and chief procurement officer Edwin Constantino said the construction firm needed a supplier like Eagle that could provide cement that meets standards in terms of quality and quantity. He said with the upcoming line-up of projects for EEI, he said Eagle’s soon-to-be-expanded capacity would be of great asset to their business.
“With the excellent experience we’ve had with Eagle Cement, along with the expansion of their capacity, they will be able to provide companies like us with cement that matches the scale and requirements of our projects. Eagle’s cement meets the required strength that we need to be able to build our projects successfully,” Constantino said.
Eagle is exclusively supplying two landmark EEI projects, including the P37.4-billion Metro Manila Skyway Stage 3 project and the P62.7-billion MRT-7 project.
The strategic alliance comes in the middle of the government’s aggressive P8-trillion “Build, Build, Build” program as well as the increased construction activity spurred by projects from conglomerates and property developers.
Eagle Cement, citing construction statistics from approved building permits released by the Philippine Statistics Authority for the first quarter of 2017, said there was a 7.1-percent increase year-on-year in the total number of permits.
Data also revealed that residential and non-residential projects grew 2.1 percent and 28.1 percent, respectively.
Eagle Cement said to meet the expected increase in demand for cement, it would expand its capacity with the completion of a third production line in Bulacan province by early 2018. This will increase the company’s cement capacity to 7.1 million metric tons.
It is also set to commence the construction of its second cement facility in Cebu before the end of 2017.
Founded in 1995 and commencing commercial operations in 2010, Eagle Cement operates the newest and single largest cement manufacturing plant in the Philippines.