Holcim Philippines, one of the leading building solution companies in the country, is investing close to $300 million (P15.7 billion) to raise its cement production capacity by 30 per cent to 13 million metric tons by 2020.
In a disclosure to the Philippine Stock Exchange on Monday, the company said its expansion plan is part of its efforts “to better support the country’s strong economic development and robust construction activity”.
Holcim Philippines said it will upgrade its facilities in Bulacan and Misamis Oriental with the installation of new and efficient kilns and mills and waste heat recovery systems as part of its cost focus.
The projects are part of the continuous capacity and productivity investments that the company started in 2012 with the rehabilitation of its grinding plant in Mabini, Batangas. This was followed by debottlenecking of plants in 2015 and expansion projects in La Union and Davao that are set to be completed in 2019.
“Our company believes in the sustained development of the Philippines. This investment is proof of our confidence in the country and our commitment to be a strong partner for progress,” said Holcim Philippines chairman Tomas Alcantara.
These projects enable the company to continue playing an important role in the country’s growth, according to its president and CEO John Stull.
“Our capacity expansion ensures that we can provide a steady supply of quality building materials to support the government’s infrastructure program and the resulting construction activity from the economy’s sustained rise,” Stull added.
In a meeting with the Department of Trade and Industry’s (DTI) leadership team in August, Alcantara and Stull expressed the company’s willingness to further build up its production capacities to support the country’s infrastructure thrust.
Holcim Philippines also assured the DTI compliance to product standards to ensure highest quality and performance.
For the third quarter, the company reported net sales of P8.5 billion, 3 per cent growth from P8.2 billion in the same period last year. From January to September of this year, sales grew 6 per cent from a year earlier to P27.3 billion.