Republic Cement, a unit of the Aboitiz Group, plans to expand capacity by 25 percent to 9.37 million metric tons in 2020 to fill up the shortfall in local output and the expected demand surge amid the major infrastructure works.
“We believe that the future of the Philippines should be built by locally-manufactured cement and that’s why we have invested in growing capacity,” said Republic Cement president and chief executive Nabil Francis.
He said local demand was currently hovering at around 33.5 million MT—a number that could go up to 35 million MT next year.
“The local industry could supply the demand. Then of course, the local industry is investing in order to follow up the increase of the demand,” Francis said.
He said the safeguard tariff imposed on imported cement did not have a significant impact on local prouction.
The Trade Department earlier subjected the cement industry to a moto propio investigation following the sudden increase in cement imports.
It was found that the high volume of cement imports had impacted the local industry that prompted the government to subject imports to safeguard tariff of P8.40 per bag.
Republic Cement is currently operating plants in strategically-located facilities across the country. It has four plants in Luzon, 1 in the Visayas and 1 in Mindanao.
“Out of the six plants, we have revamped five out of the six. It will be a mix of those five plants. The only one that will not change is the one in Visayas,” Francis said.
The reconfiguration of the five plants was a part of the company’s plan to increase output.