Eagle Cement inks supply deal with EEI
EAGLE CEMENT Corp. forged a supply agreement with Yuchengco-led EEI Corp., riding on the strong pipeline of infrastructure projects throughout the country.
In a statement on Monday, Eagle said the strategic alliance will strengthen the two companies’ existing partnership, as it will expand the EEI projects that will be supplied by the cement manufacturer.
The government is ushering in the “golden age of infrastructure” with a bold P8-trillion “Build, Build, Build” initiative complemented by strong private construction activity.
“This contract is another feather on our cap,” said Eagle Chief Operating Officer and General Manager Manny C. Teng was quoted in the statement as saying.
“EEI is among the biggest players in the infrastructure industry and their confidence in Eagle, as exemplified by this partnership, is testament to the quality of our products and service.”
Eagle is exclusively supplying two landmark EEI projects: the P37.4-billion Metro Manila Skyway Stage 3 Project and the P62.7-billion Metro Rail Transit Line 7 Project.
Both projects are owned by San Miguel Corp., which has Eagle Chairman Ramon S. Ang as its president and chief operating officer.
EEI tapped Eagle to provide its cement requirements ahead of the completion of the latter’s capacity.
“With the excellent experience we’ve had with Eagle Cement, along with the expansion of their capacity, they will be able to provide companies like us with cement that matches the scale and requirements of our projects. Eagle’s cement meets the required strength that we need to be able to build our projects successfully,” EEI Vice- President and Chief Procurement Officer Edwin Constantino said.
Eagle Cement is beefing up its capacity with the completion of a third production line in Bulacan by early 2018, which will add 2 million metric tons (MT) to the firm’s annual capacity. The new line will bring Eagle’s capacity up to 7.1 million metric tons per year.
Construction of its Cebu cement plant will begin in the fourth quarter of 2017, and is slated for completion by 2020. With another 2 million MT in annual capacity, the plant is set to supply the Visayas and Mindanao region.
After the completion of these plants, Eagle will have a total capacity of 9.1 million MT or 230 million cement bags annually. Eagle said this would make it the largest cement firm in the Philippines, in terms of capacity.
Eagle registered a 13% uptick in net income to P2.2 billion in the first half, which the company attributed to higher sales volume despite tight competition and an industrywide decline in prices.
Shares in Eagle added six centavos or 0.4% to close at P15.10 each. —