Consumers urged: Buy local cement

Local cement manufacturers are urging consumers to support Philippine-made cement to deter the influx of imported alternatives.

Under the “Buy local, Build local” campaign, the Cement Manufacturers Association of the Philippines (Cemap) and Eagle Cement Corp., in partnership with the Department of Trade and Industry (DTI) encourage local consumers and developers to protect the domestic industry by prioritizing the use of locally manufactured cement.

Cemap reports that despite sufficient cement supply, the industry grapples with a persistent influx of imports, predominantly from Vietnam, even with the imposition of dumping duties on specific manufacturers and exporters.

According to Cemap, despite the adequate cement supply the industry continues to be plagued by the influx of imported cement. The group reported that importers brought in nearly seven million tons (MT) in 2023, surpassing the figure from 2022. Local players anticipate further increase in imports, especially as the Vietnamese cement market contracts by six percent and shifts focus towards exports to enhance industry performance.

“With the projected increase of cement imports, local manufacturers will be forced to further downscale operations until demand recovers or importers cease dumping and exploiting the local market,” the group said.

In a statement, Cemap disclosed that more imports are on their way to be dumped in the Philippines, causing serious injury to the already beleaguered Philippine cement industry.

The local cement industry accounts for at least one percent of the gross domestic product. Local companies have invested billions in the manufacturing sector, creating about 130,000 direct and indirect jobs and a multiplier effect of around three times to the economy.

Over the years, the local cement industry has invested in additional capacity to make sure that the industry has adequate supply to provide for the nation’s cement demand.

Likewise, the manufacturers are investing in additional capacity totaling to 17 million tons per annum (MTPA) over the last five years— San Miguel Group +6 MTPA, Taiheiyo +3 MTPA, Republic +2 MTPA, Cemex +1.5 MTPA, Holcim +1.4 MTPA, and other players +3 MTPA.

This brings a total local cement production capacity to 53 MT in 2024 while demand continues to contract and currently forecasted to rest at 34.5 MT. However, despite the economic contribution and additional investments, Cemap said the country’s cement industry has been forced to downscale operations as imports continue to cannibalize the market, and in certain cases lay off workers due to the worsening market situation.

Cemap also urged the government to use local cement products, and prioritize procuring locally manufactured cement for government infrastructure projects. By starting with government-led consumption, which accounts for 40 percent of total demand, Cemap said this will reduce reliance on imported products, encourage investments in the sector, create and maintain thousands of jobs, generate more tax revenues, significantly save the country’s dollar reserves, and ultimately support the growth of the industry and boost economic development.—