Holcim starts P1.5-B Davao plant expansion
DAVAO CITY — Holcim Philippines, Inc. is increasing the production capacity of its cement plant here by 2.2 million metric tons (MT) through a P1.5-billion expansion project that broke ground Friday, Oct. 27.
“The Davao expansion is part of the company’s P2.7-B investment to increase the nationwide cement production to 12 million MT from the present 10 million MT,” Holcim Philippines President and Chief Executive Officer Sapna Rani Sood said during the groundbreaking ceremony.
The expansion project is expected to be completed by 2019.
“This project is part of a wider program we will embark on at Holcim Philippines to increase our cement capacity and production capacity nationwide. Holcim firmly believes that the government’s commitment to infrastructure development will spur the economy and improve lives of Filipinos,” Ms. Sood said.
The Duterte administration is aiming to bring infrastructure spending to up to 7.4% of gross domestic product by 2022, from 4.7% in 2016.
In the Davao Region, the Department of Public Works and Highways has lined up several major projects, including the coastal road and the Bypass Road in Davao City, and the first 105- kilometer segment of the Mindanao Railway Project covering the cities of Digos, Davao, and Tagum.
“Increasing our plant capacity is our contribution to making this happen. Our decision to bring this program to Davao reflects the government’s effort to make available more resources to developing Mindanao,” Ms. Sood said.
Holcim Philippines has another plant in Mindanao, located in Lugait, Misamis Oriental.
“As a member of LaFarge Holcim, the world leader of building solutions, we are well positioned to provide more than cement to help address the country’s infrastructure challenges,” she added, noting that in the past months, Holcim has engaged technical consultants in its global headquarters to help develop solutions in road-building.
“I am very happy to share our readiness to introduce these innovative offerings for the first time in the Philippines in Davao in the coming months,” Ms. Sood said.
Davao Plant Manager Xavier Kennedy, for his part, said Davao’s economy and construction activities has been growing and Holcim wants to match this growth in terms of mechanized unloading of shipments and increasing its grinding capacity.
“The company has existed for 50 years ( here) before as Union and Bacnotan cement with a very small capacity; the city is growing and also the demand and we will keep on adding to that capacity,” he said.
The Davao plant produces close to four million bags of cement per day.