Displaying items by tag: Philippines
Philippines: Holcim Philippines is prepared for more competition with the integration of markets in the Association of Southeast Asian Nations (ASEAN) region by 2015. Chief executive Eduardo Sahagun said that there is no reason that imports will be cheaper than local product especially considering the logistical costs of importing cement into an archipelago, according to the Manila Bulletin.
"We see opportunities in the greater integration of the ASEAN. Our view remains that the growth of cement demand in the medium term will be sustained but are considering other options to supply the market," said Sahagun. "I am hopeful that the government will support the local cement industry given that it is one of the few remaining integrated industries in the country. Local cement manufacturers are burdened by one of the highest energy costs in the region and an improvement in this area will go a long way to improve the industry's competitiveness."
In February 2014 Holcim Philippines announced that it may delay the construction of a US$550m cement plant in Bulacan province due to increasing economic integration in the ASEAN region.
Philippines: Lafarge Republic is investing US$25m towards building a new 0.85Mt/yr cement mill at its plant in Bulacan. The plant is expected to be operational by June 2015 following the commissioning of a mill at the Teresa cement plant, which is scheduled for January 2015.
Lafarge said in a statement that the projects will enable the company to produce an additional 1.7Mt of cement by 2015. The upgrades have been commissioned to meet an expected increase in demand in response to anticipated infrastructure spending of US$8.94bn by the Philippine government.
There has been an interesting knock-on effect from further economic integration of the Association of Southeast Asian Nations (ASEAN) this week. Holcim Philippines may delay the construction of a 2.5Mt/yr cement plant in Bulacan province due to a drop in import tariffs in 2015. Vietnam or Indonesia were named as possible sources of clinker due to their excess capacity.
The ASEAN group comprises 10 countries including Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Laos, Myanmar and Cambodia. Their respective cement production capacities range from 0.3Mt/yr at a clinker grinding plant in Singapore to Indonesia's integrated cement production capacity of 45Mt/yr. In total the ASEAN countries have a production capacity of around 220Mt/yr for a population of about 600m with national gross domestic products (GDP) per capita ranging from US$900 (Laos) to US$52,000 (Singapore).
One scenario for cement producers in the ASEAN countries is that they might be swamped by exports from places like Vietnam. That country had a production capacity of 73Mt/yr in 2013 with cement sales predicted to rise to 63Mt in 2014. Assuming the government released figures are correct, that leaves at least a 10Mt of cement production-sales gap that could torpedo a neighbouring country's cement industry in the free trade area.
Indonesia, the other potential source of clinker that Holcim Philippines mentioned, has seen construction growth slow and production capacity grow. Holcim reported in its nine-month report in November 2013 that, while national cement sales had risen by 5.3% to 41.6Mt, supply capacity had risen by 9% to 59Mt/yr. Assuming equal sales distribution throughout this suggests a capacity gap of 4Mt.
Some politicians in the region have complained that impending free trade area will create winners and losers. At a recent ASEAN meeting in Yangon, Myanmar a Myanmar planning minister raised the issue of a development gap within the ASEAN region calling for renegotiation for countries like Myanmar, Cambodia and Laos.
Meanwhile both the cement industries in Vietnam and Indonesia have clearly anticipated the implications of the ASEAN Economic Community. The Vietnam National Cement Association expects to remain competitive within the ASEAN region and against Chinese imports after 2015. In Indonesia State Enterprises Minister Dahlan Iskan stated this week that the cement industry was ready for the ASEAN Economic Community thanks to the government's strategy to consolidate its major cement producers within one company, Semen Indonesia. Consistent cement industry growth in South East Asia may be about to change.
Philippines: Holcim Philippines has announced that it may delay the construction of a proposed US$550m 2.5Mt/yr capacity cement plant in Bulacan province that was due for commissioning in 2016.
The announcement was made due to the impending economic integration of the Association of Southeast Asian Nations in 2015. Southeast Asian countries, including the Philippines, will eliminate tariff rates on goods to facilitate free flow of commodities under the Asean Free Trade Area.
"We have to plan as a region because the region is consolidating," said Eduardo Sahagun, Holcim Philippines chief executive, adding that Vietnam and Indonesia both possess excess capacity. Holcim Philippines made several investments in 2013 to boost supply, including plant upgrades in La Union and Misamis Oriental provinces and the revival of a grinding facility in Mabini, Batangas, which will be operational by the third quarter of 2014.
Sahagun said that the company's outlook on cement demand in the country remained positive. "The growth scenario is the same but where the supply will come from will change," Sahagun said.
Philippines: Lafarge Republic plans to build a 0.85Mt/yr grinding plant for its Norzagaray cement plant to meet increased cement demand. The grinding plant will be commissioned in the second quarter of 2015.
The new grinding plant is intended to supplement the output of a new mill at its Teresa cement plant in Rizal province, which due to be commissioned in the first quarter of 2015. The Teresa mill is expected to have an investment of at least Euro25m and will have a production capacity of 0.85Mt/yr.
The two mills will increase Lafarge Republic's cement production capacity to 6Mt/yr. Lafarge manufactures the cement brands Portland, Pozzolan and Type 1P. It sells its products in 40kg bags or in bulk at 800kg and 1000kg per load in bulk carriers.
Philippines: Lafarge Republic signed a contract with Fives FCB for a new cement grinding plant for the Teresa plant located in Rizal province. The proposed plant will add 850,000t/yr production capacity to the Teresa plant's capacity in 2015. No financial information for the contract has been released.
The contract includes raw material feeding, with clinker and pulverised coal fed through the existing circuit and other additives, such as a limestone, gypsum, fly ash, fed by truck dump. A cement grinding workshop will be fitted with one Horomill® 3800 and one TSV™ 4500 classifier, associated with a dryer-aerodecantor and a TGT™ filter (under Fives Solios licence). A Fives Pillard vertical hot gas generator (12 MW) for the pouzzolana (25% moisture) drying will also be fitted.
The plant's cement silo will have a capacity of 5000t. A new cement transport system will connect the new silo, the site's existing silos and the packing plant. The contract also includes the control and supervision system and an electrical sub-station for the new build.
Sweden: Following the devastating hurricane in the Philippines, Sweden's Cementa AB has announced that it will donate its annual Christmas gift of Euro22,400 to Médicins sans Frontières (MSF) (Doctors Without Borders), which is operating in the worst-affected regions.
The move makes a break with Cementa's traditional method of splitting its Christmas gift to several organisations. The company said that the need was so great in selected regions that it had decided instead to support only one organisation in 2013.
"We see this as a chance to actively do something for the affected areas in the Philippines," said Fredrik Jansson, Vice President Sales and Marketing at Cementa AB. "Hopefully others in the construction industry (will support) the same initiatives in support of the affected areas."
Philippines: Thailand-based Siam Cement Group seeks to put up a manufacturing facility for fibre cement boards, smart boards and ceramic tiles, The Nation reports. These planned projects would cater to not only the domestic market but also SGC's markets across the Asean nations.
"If the products are marketable here, we plan to produce those products here. Investments would depend on market size. For example, for fibre cement board, we need (to be able to sell at least) 5Mm2 to (justify the cost of putting up a facility). The current local demand is 30Mm2," said Surasak Kraiwitchai-charoen, international business director of SCG Building Materials Group in Thailand.
Philippines: Cement sales in the second quarter of 2013 have increased by 8.8% to 5.35Mt from 4.92Mt in the same period in 2012, according to data from the Cement Manufacturers Association of the Philippines (CeMAP). CeMAP commented that it expects the industry to grow as there is an increase in building construction, infrastructure projects and farm-to- market roads, which will now be built using cement.
The increase in sales marks a return to the growth seen in the fourth quarter of 2012 when sales rose by 8.5%. In the first quarter of 2013 sales growth fell to 3%.
Filipino infrastructure spending is expected to grow in 2013. The government has budgeted around US$6.9bn, around 2.5% of the country's gross domestic product, for projects. CeMAP has not yet forecast how much sales will grow by the end of 2013.
Philippines: The Cement Manufacturers' Association of the Philippines (CeMAP) is supporting major cement players in the Philippines to tap rainwater in a move that supports national and global water conservation efforts. CeMAP said that local cement producers have decided that the use of rainwater sits well with their water-management concepts. Water is mainly used to cool cement kilns and the hot gas streams used in cement production. Production of a tonne of clinker in modern cement plants consumes an average of about 100-200L of water. The cement plants use an average of 3.2BnL/yr of water.
"Sustainability has always been a major advocacy of all cement companies. A critical strategy for sustainable development includes implementation of effective water management systems in cement plants," said CeMAP president Ernesto Ordoñez. He added that the scheme reduces the dependence of cement plants on water coming from traditional sources such as waterways and commercial suppliers. Cement producers in the Philippines are also considering installing waterless urinals at their plants, which can save an average of 180,000L/yr of water.