Eagle Cement gears up for Vis-Min market

railway systems, airports, and transport terminals. All are poised to increase the activity in constructionand its allied sectors, including cement manufacturing.

In 2016, domestic cement consumption already reached an all-time high of 26 million metric tons. Local cement manufacturers only delivered 22.2 million, while the 3.7 million shortfall came from mostly regional imports.

Eagle Cement Corporation (ECC), a firm controlled by tycoon Ramon S. Ang, announced that it is preparing to take on landmark infrastructure projects in Visayas and Mindanao after securing the Securities and Exchange Commission’s nod to conduct its R9.2 billion initial public offering.

The firm is the country’s largest Filipino-owned cement company based on sales volume and currently manufacroads, tures and distributes its products in Luzon.

Eagle Cement intends to use the proceeds of its IPO to partially finance a new 2-million metric ton plant in Cebu, its fourth production line.

Eagle Cement said that Visayas and Mindanao are still underserved markets and that a massive infrastructure program would put a squeeze to the cement supply. By 2020, Eagle Cement’s new Cebu plant would solely service these specific territories.

Apart from this new production hub, which can accommodate the same capacity of its Bulacan plant, Eagle is also setting up marine terminals in strategic areas to hasten deployment of products and better facilitate logistics.

Eagle Cement said this move is a form of “futureproofing” while the company prepares for the government’s R3.6-trillion infrastructure outlay from 2018 to 2020.

Of the said amount, R31.5 billion is allotted for the Mindanao Railway that will connect Tagum and Digos and R40.6 billion is allotted for the Davao Airport. Other notable VisMin government projects include New Cebu International Container Port, the MatnogSamar Link, Cebu, and Panay railways.

A 6-year horizon would further put the government’s total outlay at R8 trillion, going mostly to

To date, Eagle Cement has two lines in its San Ildefonso, Bulacan plant with a total capacity of 5.1 million metric tons or about 150 million bags per annum.

A third line, which is already fullyfunded and under construction, will be completed by the first quarter of 2018 — this would put Eagle’s capacity at 7.1 million metric tons or 180 million bags per annum.