Displaying items by tag: Philippines
Philippines: DMCI Holdings is planning to spend US$180m to build a 1.7Mt/yr cement plant on Semirara Island in the Visayan Islands. The plant will also include a 0.4Mt/yr grinding mill and a captive power plant. DMCI is also planning to build three cement grinding plants in Batangas, Iloilo and Zamboanga, for a cost of US$188m, to give it access to markets throughout the country, according to the Business Mirror newspaper. The plants will be completed by 2020. Victor Limlingan, the managing director of DMCI, said that the company hopes to benefit from the government’s infrastructure spending.
Philippines: Eagle Cement plans to hold the groundbreaking ceremony for its 2Mt/yr plant at Davao on 20 October 2016. The US$300m project is intended to meet demand from infrastructure development near Manila, according to the Philippines News Agency. Ramon S Ang, the owner of Eagle Cement, said that the construction of the plant is part of a plan he announced earlier in 2016 for the cement producer to help support the country's growth while strengthening its position in the industry.
Philippines: Cement sales have risen by 10.7% year-on-year to 13.2Mt in the first half of 2016 due to increased government spending on infrastructure and improved private sector involvement in construction. Ernesto Ordoñez, president of the Cement Manufacturers Association of the Philippines, also cited good weather as helping drive up sales, in comments made to the Philippine Daily Inquirer. Private sector construction constitutes 76% of cement sales, while public construction projects use the remaining 24%.
Philippines: Republic Cement is expanding its grinding capacity by over 10% in anticipation of a rise in demand prompted by increased government infrastructure spending. Other planned upgrades include an improved dust collection system at the cement producer’s plant in Bulacan. The company is also considering building new cement plants. Company president Renato C Sunico made the comments to local press at a forum on social housing.
The government of the Philippines has cited public infrastructure as one of its general spending priorities, setting aside US$18.5bn, which is equivalent to 5.4% of gross domestic product, in 2017.
Philippines: The National Consumer Affairs Council (NCAC) has warned that around 150,000 bags of cement being sold might be contaminated with seawater. NCAC chairman Jose Paredes Pepito said the contaminated cement entered stores after a ship carrying cement from Vietnam encountered a leak that caused 6000t of cement to get wet, according to the Philippines Star newspaper. The imported cement is part of a 25,000t shipment of Halong brand cement which was unloaded in La Union in March 2016.
“Besides, re-bagged cement should not be sold unless first tested by the Department of Trade and Industry (DTI). Unfortunately, the DTI does not know the location of the 150,000 bags at this point. In the meantime, the public should be very careful when choosing the cement products that they buy in the local market,” said Pepito. He added that the contaminated cement is considered substandard and dangerous if used for construction.
Philippines: Cemex Philippines plans to build a US$300m cement plant with a production capacity of 1.5Mt/yr. The plant will be in operation in the second half of 2019, according to Reuters. Company president and chief executive Pedro Jose Palomino made the announcement amid the company’s initial public offering on the Philippine Stock Exchange.
Philippines: The Department of Trade and Industry (DTI) has asked cement producers to explain differences in cement prices in certain areas of the country. Price monitoring by the DTI has spotted discrepancies between the high price of cement in Region XII, specifically in Cotabato City, and the National Capitol Region compared to a relative low price in Cebu since January 2016, according to the Philippines Star newspaper.
The DTI has asked cement producers, including Holcim Philippines, Eagle Cement Corp., Lafarge Republic and Cemex Philippines to respond about the prices of their local brands Holcim Excel, Advance, Republic, and Rizal and Apo, respectively. Cement traders such as Bojourno Trading, Summit Koncrete Products and Cohaco Merchandising & Development have also been requested to submit their response for the prices of the imported Halong, Thang Long and Conch cement brands.
Philippines: The Cement Manufacturers Association of the Philippines has warned that so-called ‘technical’ smuggling is on the rise. CEMAP president Ernesto Ordoñez claimed that the declared freight costs for nine out of 12 imported cement shipments that it inspected were undervalued at only US$3 – 10/t. These compared to the average freight costs of US$19/t for shipments from Vietnam or China. He added that the difference in the freight costs meant that the government could be losing at least US$175,000 in value added tax (VAT), according to the Philippines Daily Inquirer.
Based on the sample, Ordoñez estimates about 75% of the 161,000t of imported cement that entered the country in the first quarter of the 2016 were technically smuggled. CEMAP have called for inspection of other shipments that entered the country in last quarter of 2015 and in the first quarter of 2016. They added that unchecked smuggling might lead to violations such as cement misclassification and substandard cement that in turn might endanger public safety.
CEMAP data shows that imports of cement grew from 4000t in 2014 to 314,000t in 2015. Cement imports of 161,000t were recorded for the quarter of 2016.
Philippines: The Securities and Exchange Commission (SEC) has approved the US$857m initial public offering of Cemex Holdings Philippines. Documents filed with the SEC showed that Cemex Holdings planned to sell 2.032 billion common shares at an offer price of up to US$0.37/share to raise US$746m in proceeds. Another 304.94 million shares were allotted in case of oversubscription, which could increase total proceeds to US$857m, making it among the largest IPOs in the country, according to the Manila Standard newspaper.
Documents show that Cemex Holdings aimed to use the proceeds to repay up to US$504m worth of short-term loans from related third party New Sunward Holdings, which was used to acquire operating subsidiaries Apo Cement Corp and Solid Cement Corp. Cemex Holdings said it planned to spend US$52m for 2016 capital expenditures, including US$13m for maintenance of existing cement facilities.
Cemex Holdings is a newly formed subsidiary of Cemex Asian South East Corp., which is wholly-owned by Cemex España, which in turn is indirectly owned by Cemex. Cemex Holdings operates two cement plants in the Philippines with a cement production capacity of 5.7Mt/yr.
Philippines: Seasia Nectar Port Services has started commercial operations at Mariveles Dry Bulk Terminal in Bataan. Seasia chairman Ramon Atayde said the new facility would optimise the operations of dry bulk handling, according to the Manila Standard. The terminal is intended to handle shipments of clinker, coal, silica sand, other raw materials for cement and other dry bulk cargoes.
The company started the development of the 11.4 hectare port in 2015, including the development of a 5.9 hectare port facility with a 247m quay equipped with a 13.5m draft under the first phase. The initial phase of the project will accommodate two vessels of 120m or one supramax/panama vessel. It is designed to handle at least 3Mt/yr. The second and third phases will expand the dry bulk terminal to accommodate another two vessels or one supramax/panama vessel. Seasia is a joint venture company between Seasia Logistic Philippines and Nectar Group.