DTI lauds new investments in support of infra program

The Department of Trade and Industry has lauded the expansion activities being undertaken by manufacturers in support of the Duterte administration’s infrastructure development agenda.

“We welcome investments for the stable supply of construction materials in support of the government’s ‘Build Build Build’ campaign,” Trade Secretary Ramon Lopez said.

“For contributing to the development of the infrastructure sector that will pave the way towards job creation and domestic growth, we thank our local manufacturing companies, which have become our partners in advocating inclusive growth,” he added.

The government has laid down a P7-trillion public infrastructure plan from 2017 until 2022 under its “Build Build Build” campaign.

With cement as one of the key materials for construction, Republic Cement & Building Materials Inc., for one, is undertaking a $300 million capacity expansion over the next five years.

Republic Cement, a joint venture of Ireland-based CRH and conglomerate Aboitiz Equity Venture, plans to increase the capacity of all its integrated plants in Luzon and Mindanao for both milling and clinker production.

Several new state-of-the-art mills in these areas will increase cement production capacity by three million tons per annum, the firm said.

In addition to new mills, Republic Cement said improved process technology would drive increased clinker output from all of its four Luzon plants, equivalent in capacity terms to a new kiln line investment.

Republic Cement will likewise seek to ensure sustainability by employing modern technologies that not only increase energy efficiency but also improve its environmental performance, in addition to its current extensive use of alternative fuels that include rice husk and municipal waste across its current manufacturing footprint.

“These investments will help ensure a continued supply of cement for the local construction sector in light of the strong demand for commercial and residential spaces and the current administration’s aggressive infrastructure plans,” the firm said.

Based on a cement market report prepared by the Cement Business Advisory Ltd. and provided by the Board of Investments, the Philippine cement industry needs an additional 11.55 million tons of cement capacity to address cement consumption requirements until 2025.

The report showed as of 2016, the local cement industry has an estimated annual clinker and cement capacity of 20.6 and 28.63 million tons, respectively, but the industry was only able to produce 16.8 million tons of clinker and 23.1 million tons of cement.

“It is to be noted even with an additional capacity of 11.55 million tons of cement by 2025, there is still a deficit of 12.4 million tons of cement for a low-growth scenario, 25 million tons of cement for a medium-growth scenario, and 37 million tons of cement for a high-growth scenario,” the report said.