Sunday, August 14, 2022
manilastandard.net
ADVERTISEMENT
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
manilastandard.net
No Result
View All Result
Home Business Columns Ray S. Eñano

San Miguel a complete infra firm after Holcim acquisition

Ray S. EñanobyRay S. Eñano
May 22, 2019, 9:00 pm
in Ray S. Eñano
Reading Time: 3 mins read
A A
78
SHARES
Share on FacebookShare on TwitterShare on Email

Conglomerate San Miguel Corp., by acquiring Holcim Philippines Inc. two weeks ago, has cemented its hold as one the country’s biggest infrastructure companies.

It is now in a better position to see the significant completion of its major infrastructure projects from toll roads and airports to railways, in step with the ambitious drive of the President Rodrigo Duterte to bring the Philippines to the golden age of infrastructure, when gridlock will be a thing of the past and travel time is very much predictable.

San Miguel’s acquisition of Holcim from European giant LaFarge Holcim for $2.15 billion has made the diversified conglomerate a total infrastructure corporation, with significant assets in the toll road and railway sectors, water and power, airports and port operations.

San Miguel, with assets of P1.7 trillion, also broke the decades-old hold of foreign multinational companies on a vital industry where the country’s future economic growth is literally built on: cement manufacturing. The conglomerate bested Anhui Conch, China’s largest cement company, for the right to buy Holcim from LaFarge Holcim, which has decided to exit Southeast Asia.

Cement supply is a major and critical input to infrastructure development. The Philippines, in the midst of a property boom and construction frenzy, cannot afford to be at the mercy of global risk factors affecting foreign multinationals and international suppliers.

ADVERTISEMENT

Prior to San Miguel’s major entry, the top three cement companies, LaFarge Holcim, Republic Cement, and Cemex—all affiliated with foreign multinational companies—aggregately controlled over 70 percent of the local market. In contrast, the cement industry in Indonesia, Vietnam, Malaysia and Thailand is dominated by local players. 

There has been a pushback on foreign ownership of the cement industry across Southeast Asia because of the product’s critical role in economic development. 

The situation is worse in the Philippines. It is now the third largest importer of cement in the world after relying on foreign manufacturers that dominate the local market.

The Philippines in 2016 imported some 6.4 million tons of cement, with 3.8 MT coming from Vietnam. Almost 25 percent of Philippine cement consumption at the time was fed by imports. In 2018, it became the only net importer of cement among the five large countries in Southeast Asia. The Philippines imported some 8.4 million tons, or 25 percent of the domestic capacity. Imports accounted for 35 percent of the demand, while the local industry supplied the balance.

With the continued rise in cement demand brought about by Build Build Build, private sector infra initiatives and the overall rise in construction projects fueled by the country’s growing economy, it makes a lot of sense for a Filipino company  like San Miguel to take over Holcim.

As one of the country’s largest and most diversified conglomerates, San Miguel has the capability and resources to manage—even upgrade and upscale—Holcim’s operations. In much the same way it is increasing its manufacturing capacity for food and beverage products, raising cement production to meet the projected demand—or just lessen dependence on imports—is one of the things that the conglomerate can immediately do.

None of the foreign groups has invested in a single new kiln line since taking over the local cement industry, although the demand has risen from around 12 million tons in 2003 to over 30 million tons in 2018.  They simply made minor adjustments to old facilities and took out from the Philippines huge amounts of dividends, technical fees and other payments to invest in other countries.

San Miguel president and chief Ramon Ang, meanwhile, is one local business leader who is capable of making Holcim more efficient to meet the country’s needs. San Miguel, under the helm of Ang, owns one of the largest infrastructure firms in the country, responsible for such large-scale projects such as the MRT-7, Skyway Stage 3, the Tarlac-Pangasinan-La Union Expressway, the Naia Expressway, the SLEX TR4 extension to Quezon province, and the Southeast Metro Manila Expressway or Skyway 4 projects.

A major consideration for San Miguel’s bid for Holcim will most likely be its infrastructure business. By leveraging on the combined strength and synergies between these two businesses, the company will not only be in a better position to complete and pursue new infrastructure projects, it will also be able to supply the needs of other infrastructure companies in the country.

San Miguel is also looking to build possibly the largest and most ambitious infrastructure project in the Philippines today: The New Manila International Airport that will rise rise on a 2,500 hectare property in Bulacan province. Such a vital infrastructure project cannot be subject to risks associated with foreign cement manufacturers.

E-mail: rayenano@yahoo.com or extrastory2000@gmail.com 

or business@manilastandard.net

Tags: Holcim Philippines IncSan Miguel Corp
ADVERTISEMENT
Ray S. Eñano

Ray S. Eñano

Related Posts

New trade rules may raise prices of roofing materials

byRay S. Eñano
February 17, 2021, 6:50 pm
0
136
New trade rules may raise prices of roofing materials

The construction sector is one of the most deeply impacted industries in the Philippines. The pandemic lockdown directly reduced construction...

Read more

Electricity pricing in PH enters new era

byRay S. Eñano
September 18, 2019, 7:30 pm
0
129
Electricity pricing in PH enters new era

Filipino consumers may not be aware of it, but the policy to subject power supplies to a competitive selection process,...

Read more

A chance to reduce power rates in PH

byRay S. Eñano
July 24, 2019, 7:55 pm
0
135
A chance to reduce power rates in PH

Extending electricity services to far and remote areas in the Philippines is always a challenge for every administration. Given the...

Read more

Luzon quake tests inferior steel bars

byRay S. Eñano
May 1, 2019, 9:55 pm
0
133
Luzon quake tests inferior steel bars

The magnitude 6.1 earthquake that rattled Central Luzon and Metro Manila on April 22 has evoked bad memories from the...

Read more

Power impassé wreaks havoc on Zamboanga

byRay S. Eñano
April 24, 2019, 7:55 pm
0
129
Power impassé wreaks havoc on Zamboanga

Zamboanga City, the Sardines Capital of the Philippines, is groping in the dark.  A standoff between the city’s main power...

Read more

Government should weigh 2 Kaliwa Dam options

byRay S. Eñano
March 20, 2019, 8:20 pm
0
130
Government should weigh 2 Kaliwa Dam options

President Rodrigo Duterte should step into the brewing Kaliwa Dam controversy before the government finds itself in deep water, so...

Read more

Stories you may like

  • People …are talking about Liza Soberano

    Supermodel son is Philippine bet in Manhunt International

    7863 shares
    Share 3145 Tweet 1966
  • Judgments and their execution

    1267 shares
    Share 507 Tweet 317
  • Another oil price rollback likely as world economy further stalls

    1241 shares
    Share 496 Tweet 310
  • Appeal to BBM and Acuzar

    933 shares
    Share 373 Tweet 233
  • Basilan solon wants barangay, SK polls reset to May 2024 to save P8b for gov’t

    902 shares
    Share 361 Tweet 226

Print Edition

View More

Recent Posts

  • Ukraine, Russia accuse each other of nuclear plant strikes
  • Luck decides life and death in Ukraine’s war zone
  • Farming under fire on the frontlines in eastern Ukraine
  • Trump vs Biden again? The documents scandal makes it more likely
  • Beijing’s pet lovers turn to acupuncture to treat their furry friends
  • Gaming industry feels squeeze after pandemic boom
  • North Korea criticises UN chief over denuclearisation call
  • Seven injured, two seriously, in attack on Jerusalem bus: police, medics

Advertisement

Latest News

Gaming industry feels squeeze after pandemic boom

byAFP
August 14, 2022, 9:30 am
0
131
Southwoods nails Seniors’ Fil golf crown

In the height of the pandemic, video games offered people solace in isolation. But now that life is slowly returning...

Read more

North Korea criticises UN chief over denuclearisation call

byAFP
August 14, 2022, 9:00 am
0
132
UN chief discusses Jerusalem tensions with Israeli, Palestinian leaders

North Korea on Sunday criticised UN Secretary-General Antonio Guterres for his "dangerous words" after he called for the complete and...

Read more

Seven injured, two seriously, in attack on Jerusalem bus: police, medics

byAFP
August 14, 2022, 8:30 am
0
135
Seven injured, two seriously, in attack on Jerusalem bus: police, medics

Seven people were injured, two of them critically, after a shooting attack on a bus in Jerusalem's Old City, Israeli...

Read more

Swiss techno Street Parade returns after two-year absence

byAFP
August 14, 2022, 8:00 am
0
134
Swiss techno Street Parade returns after two-year absence

Hundreds of thousands of people filled the streets of a sun-baked Zurich Saturday for the Swiss city's annual techno Street...

Read more

SPEC PROPERTIES INC.: Notice of Meeting

byManila Standard
August 14, 2022, 7:30 am
0
135
Banaag assumes post as Bright Kindle director

Read more

Advertisement

ADVERTISEMENT
Facebook Twitter Instagram Youtube

ABOUT US

Manila Standard

Manila Standard website (manilastandard.net), launched in August 2002, extends the newspaper’s reach beyond its traditional readers and makes its brand of Philippine news and opinion available to a much wider and geographically diverse readership here and overseas.

Digital Edition

In tone and content, the online edition mirrors the editorial thrust of the newspaper. While hewing to the traditional precepts of fairness and objectivity, MS believes the news of the day need not be staid, overly long or dry. Stories are succinct, readable and written in a lively style that has become a hallmark of the newspaper.

Download – Today’s Paper

Search

No Result
View All Result

6th Floor Universal Re Bldg., 106 Paseo De Roxas cor. Perea Street, Legaspi Village, 1226 Makati City Philippines

Trunklines: 832-5554, 832-5556, 832-5558

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Pop.Life
    • Newsmakers
    • Hangouts
    • A-Pop
    • Post Its
    • Performances
    • Malls & Bazaars
    • Hobbies & Collections
  • Technology
    • Gadgets
    • Computers
    • Business
    • Tech Plus
  • MS ON THE ROAD
    • Sedan
    • SUV
    • Truck
    • Bike
    • Accessories
    • Motoring Plus
    • Commuter’s Corner
  • Home & Design
    • Residential
    • Commercial
    • Construction
    • Interior
  • Spotlight
  • Gallery
    • Photos
    • Videos
  • Events
    • Seminars
    • Exhibits
    • Community
  • Biyahero
    • Travel Features
    • Travel Reels
    • Travel Logs
  • Pets
  • Advertise with Us

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Install Manila Standard Web App

Install App