Gypsum board manufacturer in the Philippines Knauf Gypsum Philippines Inc. seeks duty-free importation of raw materials to ensure stable pricing of the alternative housing board as demand for the product is expected to grow.
Knauf said in a public hearing at the Tariff Commission Tuesday the use of gypsum board would help the country resolve housing problems by faster completion of the mass housing projects to address the housing backlog estimated at 6.5 million units as of 2022.
Knauf imports the raw materials for the gypsum boards from Oman, Qatar.
Knauf officials said the company has the capacity to bring down pricing as they are seeking tariff exemptions. Duty-free importation will also improve the company’s viability as the only gypsum board manufacturer in the country, it said.
The company underscored the importance of gypsum boards that maybe used as an alternative to cement and/or hollow blocks that significantly lowers construction cost and makes owning a home easier especially for the mass housing projects.
Knauf has the dominant share of the gypsum board market in the Philippines at 65 percent, with imports from China, Indonesia and Thailand accounting for 35 percent.
“We would want to be consistent with better quality, the best quality for customers and innovative so we’ll have the flexibility of developing more products that are suitable for the Philippines market,” Knauf officials said during the hearing.