Displaying items by tag: Philippines
Philippines: Aboitiz Equity Ventures Inc, a Philippine investment holding company, has signed a US$400m loan to help fund the acquisition of the Philippine assets and business of cement maker Lafarge SA. The loan is being provided by The Bank of Tokyo-Mitsubishi UFJ Ltd.
Aboitiz Equity signed a deal with CRH in May 2015 to allow it to join the Irish building materials company in buying Lafarge's cement plants in the Philippines. CRH earlier agreed to buy the assets as part of Lafarge and Holcim assets that were due to be sold off prior to the formation of LafargeHolcim. Aboitiz Equity had said the investment is part of efforts to expand in infrastructure development.
Philippines: Holcim Philippines will invest up to US$40m to expand its production capacity from 8Mt/yr to 10Mt/yr target by the end of 2016.
Holcim Philippines president and CEO Eduardo A Sahagun said that the company was gearing up to improve its facilities in Calaca and Mabini in Batangas, as well as in Norzagaray in Bulacan. Sahagun said that the newly-acquired Star terminal of Lafarge Republic would also increase its production capacity.
"We are reviving a lot of projects. Our Calaca plant is easily adjustable to additional volume as well as the Mabini plant and the Star terminal. The Star terminal could double our capacity. Cement demand is growing and we have no option but to raise our supply," said Sahagun. He expects to see surging market demand due to new public-private partnership (PPP) projects and as more infrastructure major players in the country have announced expansion plans.
"The market prospects remain bright as construction activity is expected to continue," said Sahagun. He attributed the growth to higher private construction activities and accelerated government infrastructure spending.
"Our investment in plant upgrades allows our plants to run longer before scheduled maintenance activities. This will pay off in the current market environment as we are able to meet the demands of customers," Sahagun added.
Philippines: Philippine construction activity growth, which slowed to 4.4% in the first quarter of the 2016 fiscal year compared with an average 5% growth in the previous three quarters, appears to have picked up in the second quarter of fiscal 2016, which ended on 30 June 2015, as indicated by Holcim Philippines' sales over the period and reported by Dow Jones.
In the second quarter of its 2016 financial year, Holcim Philippines' net sales rose by 9.7% year-on-year to US$212m, aided by higher sales volumes and prices. Holcim president Eduardo Sahagun said that the company was improving plant efficiency and upgrading it to run longer to cover strong demand. He said that cement prices don't appear to be as big a concern as supply. "We understand that contractors are most concerned with steady cement supply and this is what we are trying to address in the second half," said Sahagun.
Philippines: Holcim Philippines Inc plans to expand its market and offer a wider range of construction solutions following its acquisition of Lafarge Republic Inc's Star terminal in Manila and its aggregates business in Rizal. Holcim Philippines president and CEO Eduardo Sahagun said that the purchase is a welcome addition to the company's business.
"These assets further strengthen our ability to provide products and solutions that help our customers and partners in the construction industry," said Sahagun. He said Lafarge's Star terminal would strengthen Holcim Philippines' ability to support customers in Metro Manila and South Luzon, while the acquisition of Lafarge Republic Aggregates Inc, located in Angono, Rizal, would provide the company an established aggregates business. Holcim Philippines closed the deal on 4 August 2015 and paid US$67.5m for the assets.
Philippines: Cement sales have surged in the first six months of the year behind robust construction activities in the country, according to the Cement Manufacturers Association of the Philippines (CeMAP).
CeMAP president Ernesto Ordoñez said that total cement sales rose by 11.1% to 11.9Mt in the first half of 2015 from 10.7Mt in the same period of 2014, according to The Philippine Star. Ordoñez said that construction activity remained strong in the first semester, fuelled primarily by growing business confidence in the country. "The weather was also exceptionally good in the first half of 2015. There were some rains, but generally the weather cooperated very well," said Ordoñez.
For the second quarter of 2015, cement sales grew by 12.5% year-on-year to 6.21Mt. This followed 9.6% growth in the first quarter. According to Ordoñez, growth was higher in the second quarter because the government accelerated its spending. The government, for its part, has been increasing the budget for infrastructure to address gaps and support economic growth. CeMAP is banking on the increase of construction activities in the country to support higher cement sales.
Philippines: According to BusinessWorld, San Miguel Group plans to invest US$2bn to build two cement facilities and a nickel processing plant as part of its diversification efforts into new growth areas.
San Miguel has allocated US$800m for the two 2Mt/yr cement facilities, according to San Miguel president Ramon S Ang. Construction has already begun. One of the facilities is located at Northern Cement's plant in Pangasinan, while the other is being built in Quezon. In 2013, San Miguel paid US$77.5m for a 35% stake in Northern Cement, which is owned by the conglomerate's chairman, Eduardo M Cojuangco, Jr. The facilities, which are expected to be completed in 2017, will be funded by 50% debt and 50% equity.
San Miguel's venture into the cement business comes as it participates in major infrastructure projects. San Miguel-led Optimal Infrastructure Development won the contract for the US$351m second stage of the Ninoy Aquino International Airport Expressway Project. San Miguel is also building the US$591m third stage of the Metro Manila Skyway and the Tarlac- Pangasinan-La Union Expressway, as well as expanding the South Luzon Expressway.
South America/Asia: Mexican cement company Cemex has confirmed plans to expand its social responsibility programme to Guatemala, Bangladesh and the Philippines by 2016. The firm intends to installed self-employment production centres (CPA) in these countries to help low-income families renovate their houses.
The initiative, developed in collaboration with authorities and non-governmental organisations, provides construction training and teaches how to manufacture concrete blocks. Half of the production obtained at these centres is used in the construction or renovation of the participants' houses and the other half is bought by local governments to develop infrastructure projects. The income achieved by the initiative is then reinvested by Cemex in the centres.
Cemex already operates 80 CPAs in Mexico and expects to open 20 additional centres in 2015. It has also developed the initiative in Colombia since 2010.
Philippines: The Manila Bulletin has reported that the capacity utilisation of local cement plants has increased to 85% from 68% in 2014 due to strong domestic construction activities, according to the Department of Trade and Industry (DTI).
DTI undersecretary Victorio Mario Dimagiba said that there is enough cement supply to meet demand. He added that the Philippines had 31.3Mt/yr of cement production capacity in 2014, when consumption was 21.3Mt, or 68%. At present, however, plant capacity utilisation has reached 85%.
The increase in demand in the Visayas and Mindanao areas in the past two weeks was to pre-empt the onset of the rainy season. Dimagiba said that, even though there are cement plants in these regions, there is a huge logistical challenge in the transport of cement to the islands. He added that should local demand in these regions exceed production, imports could augment the shortfall.
Philippines: According to the Philippine Daily Inquirer, on 24 June 2015 the Pasig City government brought online what it described as, 'The country's largest facility for turning rubbish into fuel, capable of processing 600t/day of trash.'
The plant, which is Pasig City's joint project with the IPM Construction & Development Corp (IPM) and the Metro Manila Development Authority (MMDA), can process almost all of the city's daily waste production into refuse-derived fuel (RDF). Pasig City mayor Maribel Eusebio said that the plant would produce fuel pellets from the waste, which would then be supplied as an alternative fuel to cement plants. The RDF is majority-owned by Basic Environmental Systems & Technologies (BEST), a subsidiary of publicly-listed Minerales Industrias Corp, as well as France-based Lafarge Industrial Ecology International.
The plant mechanically segregates waste, selecting garbage with high thermal value that will be shredded, made into pellets and wrapped into bales. The plant is expected to convert 25 – 35% of the processed waste into alternative fuel for cement kilns. "The plant addresses serious concerns on increasing municipal solid waste and disposal," said Eusebio. "The RDF plant also complies with the waste diversion requirement of Republic Act No 9003 or Ecological Solid Waste Management Act of 2000. It also addresses climate change issues associated with how municipal wastes are managed."
The use of RDF in lieu of coal addresses the twin issues of solid waste management and climate change. "This is the largest RDF plant in the Philippines to date," said Isabelita P Mercado, president of IPM, which operates and manages the plant. "This is also a pioneering endeavour to save the environment by reducing our dependence on fossil fuel."
Philippines: According to IHS Maritime 360, the UK's Nectar Group and Seasia Nectar Port Services Inc (SNPSI), which are in a joint venture project to build a US$185.5m dry bulk terminal in Bataan, expect the new facility to launch in early 2016.
"The current schedule is for phase one to be operational from the first quarter of 2016," said a Nectar Group official. "There are planned timeframes for the other two phases, but they are dependent on how well the first phase operates."
The new dry bulk terminal is designed to handle shipments of coal, clinker, silica sand, cement raw materials, steel, fertiliser and other dry bulk cargo. Construction of the terminal will be completed in three phases covering 114,000m2. The first phase covers the development of the port facility with a 247m quay and a 14m draft. Once completed, the terminal will have 3Mt/yr of cargo capacity.
In addition to quayside and open storage areas, SNPSI will also build facilities for warehousing, stevedoring, lightering and other services.