Holcim eyes reopening 3 idle cement plants

10/22/2009

Holcim Philippines Inc., the country’s largest producer and supplier of cement, plans to open three of its mothballed production plants due to the rising demand for cement in Mindanao.

Holcim senior vice president for sales, marketing, distribution and technical services Eduardo Sahagun said the increasing construction activities in Mindanao where most of the government infrastructure projects are concentrated, raised the demand for cement products to 5 million bags a year, the highest in 20 years.

At present, Holcim is actively involved in government projects in the country, a significant share of these are located in Mindanao.

Among its major projects are the Cagayan Airport, the 400- to 500-kilometer road in Davao del Norte. He added Holcim has also bagged the controversial Northrail project.

Due to these projects, the industry is expected to growth by an average of 10 percent within the year. Government infra projects are the main driver of growth, he added.

Holcim assured that its capacity is enough to supply the requirements of these projects but Sahagun said, if there is a need for an additional capacity, the company may consider to open its facilities in Davao, Bulacan and Batangas. These plants have been closed for operations for 4 years.

But not likely before the coming elections next year, Sahagun said, “not that soon but the possibility is there.”

Despite the recent calamities, the industry is not expected to benefit through increase in demand for construction materials, not at the moment, he added, “We are more on recovery and not yet on rehabilitation.” Ayen Infante

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