Local cement manufacturers warned against the continuing influx of imported cement despite the imposition of anti-dumping duties.
The Cement Manufacturers Association of the Philippines (CeMaP) said most cement coming from Vietnam reached close to 7 million metric tons (MT) in 2023.
“The figure is expected to rise even further as the Vietnamese cement market contracts by 6 percent, and they look towards exports to improve industry performance, with local manufacturers calling for a reduction on export taxes levied on cement,” said a cement group member.
This indicates that more imports are on their way to be dumped in the Philippines in the coming months, the group said.
The local cement industry contributes significantly to the Philippine economy, accounting for at least 1 percent to the gross domestic product.
The domestic industry invested several billions in the manufacturing sector, generates an estimated 130,000 direct and indirect jobs and contributes a multiplier of around 3x to the economy.
CeMAP said that over the past few years, the local cement industry invested in additional capacity to make sure that the industry has adequate supply to provide for the nation’s cement demand.
Local manufacturers invested in additional capacity totaling to 17 million tons per annum (MTPA) over the last five years.
San Miguel Group increased its output by 6 metric tons per annum (MTPA); Taiheiyo, 3 MTPA; Republic Cement, 2 MTPA; Cemex, 1.5 MTPA; Holcim, 1.5 MTPA; and other players, 3 MTPA.
This brought total local cement production capacity to 53 MT in 2024, while demand continues to contract and is forecasted to settle at 34.5 MT in 2024.
More than its contributions to the economy and the construction industry, local cement manufacturers have also added value in improving the country’s health and safety industrial standards, environmental stewardship, and participates heavily in the country’s growing circular economy.
The Philippine cement industry has been forced to downscale operations as imports continue to cannibalize the market, and in certain cases lay-off workers while the projected increase of cement imports, local manufacturers will be forced to further downscale operations until downscale operations until demand recovers or importers cease dumping and exploiting the local market.
To directly address the threats from imported cement, CEMAP and Eagle Cement Corporation, in partnership with the Department of Trade and Industry (DTI), continues to push its Buy Local, Build Lokal campaign.
The campaign encourages the individual Filipino consumer as well as local developers to exercise sustainable business judgment and do their part in protecting the Philippine domestic industry by prioritizing the use of locally-manufactured cement.
Government-led consumption, which accounts for 40 percent of total demand, reduce reliance on imported products, encourage investments in the sector, create and maintain thousands of jobs, generate tax revenues, save dollar reserves and support industry growth.