Cement maker Holcim Philippines Inc. is spending close to $300 million to expand output by 30 percent to 13 million metric tons by 2020.
Holcim Philippines said in a disclosure to the stock exchange the company would expand the capacity of cement plants in Bulacan and Misamis Oriental provinces with the installation of new and efficient kilns and mills and waste heat recovery systems.
“Our company believes in the sustained development of the Philippines. This investment is proof of our confidence in the country and our commitment to be a strong partner for progress. With this, Holcim Philippines will continue being a reliable partner in building a better future for the country,” Holcim Philippines chairman Tomas Alcantara said.
The cement firm said the expansion projects formed part of its capacity and productivity investments that started in 2012 with the rehabilitation of a grinding plant in Mabini, Batangas.
This was followed by de-bottlenecking of plants in 2015 and the P3-billion expansion of La Union and Davao plants set to be completed in 2019.
“These projects enable our company to continue playing an important role in the country’s growth. Our capacity expansion ensures that we can provide a steady supply of quality building materials to support the government’s infrastructure program and the resulting construction activity from the economy’s sustained rise,” Holcim Philippines president and chief executive John Stull said.
Other cement companies are also on the expansion mode, betting on the Duterte administration’s strong push for infrastructure.
Cemex Holdings Philippines Inc. earlier said it would spend $235 million to expand the capacity of its cement plant in in Antipolo, Rizal.
Eagle Cement, owned by businessman Ramon Ang, is also putting up a new cement plant in Cebu with a capacity of 2 million metric tons.
Holcim Philippines earlier said third-quarter net profit reached P176.8 million, down 47.7 percent from P337.4 million recorded year-on-year.
Sales rose eight percent to P8.51 billion during the period from P8.26 billion a year ago even as heavy rains dampened demand.
Cost of sales in the third quarter, however, rose 10.5 percent to P7.32 billion from P6.62 billion on year.
Holcim Philippines booked a net income of P1.74 billion in the nine-month period, down 24 percent on year.