• Holcim allots P2.4 B capex for 2018

Holcim Philippines is setting aside P2.4 billion for capital expenditure this year in line with plans to raise production capacity.

This as the company plans to hitch a ride on the ongoing construction boom in the country. It plans to improve its ability to supply the market more efficiently and provide new innovations to its partners in the industry.

“Last year, we started projects to raise cement production capacity nationwide to 12 million metric tons by 2019. While these projects have just started, we are already con- sidering more investments to raise clinker capacity given the positive projections for the construction industry,” Holcim’s newly appointed president and CEO John Stull said during the company’s annual shareholders’ meeting last week.

At the same time, he said that before the company intends to raise production capacity, it has to make sure it is getting as much from its plants.

“For this, we worked with the LafargeHolcim Group to strengthen the culture of excellence in our facilities. We also implemented logistics excellence initiatives so our business partners and customers receive products when and where they need it,” he said.

Improved production efficiency is critical, as the cost of inputs has risen because of external developments, he added.

Furthermore, he said, the company has also launched initiatives to trim down energy and logistics expenses, the biggest cost items.

Moving forward, Stull said the company would continue to prioritize improvements in operation, tightening of cost management and use of new building solutions to better benefit from and support the strengthening construction activity in the country.

Despite higher sales volumes, Holcim Philippines’s profits for the first quarter of 2018 reached P700 million, down compared to P940 million from the same period last year.

The company attributed the decline to lower cement prices from increased competition and higher production expenses.

Despite this, the company’s financial performance is steadily improving with the first quarter results up 278 percent higher than the fourth quarter numbers and the highest since the third quarter.