De­mand for ce­ment in Min­danao high

Sun.Star Davao - - BUSINESS - By Jen­nie P. Arado

THERE is cur­rently a high de­mand for ce­ment in Min­danao given the boom­ing con­struc­tion in­dus­try in the dif­fer­ent ur­ban ar­eas in the is­land and a lot of lo­cal and in­ter­na­tional ce­ment com­pa­nies have al­ready ex­pressed in­ter­est in in­vest­ing and ex­pand­ing to Min­danao.

With the Build, build, build project of the cur­rent ad­min­is­tra­tion is the in­crease de­mand of con­struc­tion man­power and ma­te­ri­als in­clud­ing ce­ment.

“Con­struc­tion will def­i­nitely con­tinue to be a ma­jor player in terms of our eco­nomic growth as we’ve seen left and right con­struc­tion from small build­ings, com­mer­cial es­tab­lish­ments, to high-rise tow­ers across ma­jor ur­ban cen­ters in Min­danao. That’s why this means in­creased de­mand of ce­ment for Min­danao. Im­port of ce­ment is also grow­ing be­cause our own do­mes­tic de­mand needs to be com­ple­mented by those that have been sourced out,” Min­danao De­vel­op­ment Author­ity (Minda) deputy ex­ec­u­tive di­rec­tor as­sis­tant sec­re­tary Romeo Mon­tene­gro said.

Just Oc­to­ber of this year, it was re­ported that Hol­cim Philip­pines plant in Davao City in­vested about P1.5 bil­lion for its ex­pan­sion with tar­get in­creased an­nual ca­pac­ity of 2.2 mil­lion met­ric tons from its cur­rent 1.4 mil­lion tons. Their ex­pan­sion was com­posed of two com­po­nents which in­clude (1) the mech­a­nize ship un­load­ing and load­ing fa­cil­ity (2) and the grind­ing fa­cil­ity in­creased ca­pac­ity.

“Hol­cim Philip­pines firmly be­lieves in the gov­ern­ment’s com­mit­ment on in­fra­struc­ture growth that would spur the econ­omy and im­prove the lives of the peo­ple. The gov­ern­ment needs sup­port to make that hap­pen and that is where we come in,” said Hol­cim Philip­pines pres­i­dent and CEO Sapna Sood in an ear­lier in­ter­view.

Aside from Hol­cim Philip­pines, Tai­heyo Ce­ment Philip­pines, Inc. (TCPI) will in­vest P30 mil­lion for the ex­pan­sion their op­er­a­tion through a ce­ment plant in Panacan, Davao City that is tar­geted to open early 2018. On an ear­lier pub­lished re­port, Davao City has an es­ti­mated an­nual ce­ment de­mand of 10 mil­lion boxes and about 100 mil­lion boxes an­nu­ally for Min­danao.

Pres­i­dent Ro­drigo Duterte’s visit to Ja­pan last Oc­to­ber 30 re­sulted to a P6 bil­lion worth of signed busi­ness agree­ments be­tween Ja­panese and Filipino busi­ness­men and gov­ern­ment in­sti­tu­tions. In­cluded in this amount is the plant and pro­duc­tion-re­lated in­fra­struc­ture ex­pan­sion project of Tai­heiyo Ce­ment Cor­po­ra­tion.

Se­men In­done­sia In­ter­na­tional (SII), an In­done­sian ce­ment com­pany, has also ear­lier ex­pressed in­ter­est in ex­pand­ing to Min­danao. Cur­rently, SII is ex­port­ing about 20,000 met­ric tons (MT) of ce­ment to Min­danao. Their fa­cil­ity in In­done­sia has an an­nual pro­duc­tion ca­pac­ity of 30 mil­lion MT.

“We are look­ing for op­por­tu­ni­ties here be­cause the Pres­i­dent (Ro­drigo Duterte) is claim­ing to do a mas­sive in­fra­struc­ture de­vel­op­ment in the south­ern part of the Philip­pines, which is very close to our fa­cil­ity and we want to par­tic­i­pate in that de­vel­op­ment,” SII Manag­ing Di­rec­tor Rah­man Kur­ni­awan said in an ear­lier in­ter­view.

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