Displaying items by tag: Philippines
Philippines: Holcim Philippines plans to construct a 2.5Mt/yr cement plant in Bulacan costing US$550m. Holcim Philippines chief executive Ed Sahagun said in a news briefing that the company had obtained first phase approval from its parent company Holcim.
The approval will allow the cement producer to obtain quotations, organise a project team and proceed with securing permit requirements. Final approval will be discussed in September 2013. Holcim Philippines plans to have the new plant on stream by 2016. Sahagun said that he expected demand for cement to further improve, once the public-private partnership projects were implemented.
Holcim Philippines' net income in the first quarter of 2013 grew by 77.2% to US$35.1m from US$19.8m in the same period in 2012, due to increased demand and higher cement prices.
Philippines: A consortium, including a Lafarge subsidiary, has officially opened a refuse-derived fuel (RDF) facility at the Payatas landfill in Quezon City in the Philippines. Mundo Verde consists of Lafarge Industrial Ecology International SA, landfill operator IPM Environmental Services (IPM- ESI), waste management consultancy Basic Environmental Systems & Technologies (BEST), as well as engineering consultancy Pennies and Pounds Holdings.
"The facility will help reduce the volume of waste in the Payatas landfill, while at the same time produce RDF, an alternative fuel that can be used in the cement-making process," said Mundo Verde in a statement.
The facility started operations on 22 January 2013 and it is expected to increase RDF production to 150t/day from 50t/day. The landfill site receives an estimated 1200t/day of solid water of which about 30% will be processed by the facility. Waste processing is expected to prolong the lifespan of the landfill by three to four years.
The facility's RDF will be used at Lafarge Republic cement plants. Currently, coal comprises 75% of the cement producer's fuel with the remaining 25% made up of alternative fuels such as rice husks, discarded plastics, and sludge. RDF comprises 5 - 10% of the producer's alternative fuel use.
Philippines: Cement sales in the first quarter of 2013 have risen by 3% to 4.80Mt from 4.63Mt in the same period in 2012, due to increased demand driven by the peak construction season. Compared to the fourth quarter of 2012, sales rose by 8.5% from 4.41Mt.
Cement producers are preparing for capacity expansion due to existing strong domestic demand and an expected boost from the full implementation of huge infrastructure projects under the government's Public-Private Partnership (PPP) programme.
Capacity expansion projects include a Holcim Philippines plant of up to 2.5Mt/yr costing up to US$500m. The project, which is awaiting approval, is expected to be operational by 2017. Cemex is to raise capacity at its plant in APO by 1.5Mt/yr with an investment of US$65m. The project is expected to be operational by 2014. Lafarge Republic plans raise capacity by 1Mt/yr with an upgrade of its Danao grinding plant in Cebu and debottlenecking its Norzagaray plant's mill in Bulacan. By the first quarter of 2013, Lafarge hopes to supply an additional 0.2Mt/yr to Luzon, 0.65Mt/yr to Visayas and another 0.1Mt/yr to Mindanao.
The Cement Manufacturers Association of the Philippines (CeMAP) has petitioned the Board of Investments for the inclusion of the industry in the 2013 Investment Priorities Plan (IPP) to be eligible for government incentives, including an income tax holiday.
According to Eduardo Sahagun, CEO of Holcim Philippines, the Philippines cement industry has a total capacity of 21Mt/yr and in 2012 it sold 18.5Mt, a capacity utilisation rate of 85%. In 2012 the industry grew by an 'extraordinary' 18%, fuelled by private and public construction projects.
Philippines: The National Price Coordinating Council (NPCC) in the Philippines announced on 8 April 2013 that it was concerned about rising prices for cement.
"We will be sending letters to cement producers to ask them why their prices have gone up," said Trade Undersecretary Zenaida C Maglaya in a briefing after a meeting of the NPCC. "We have to ask them the reason because it may be that they consumed more coal, which went up (in price), but there might be another reason." She added that the firms have to send in their reports within the week.
The Trade department also reported that it was investigating Eagle Cement for increasing its prices after it had agreed earlier with the government to sell lower-priced cement. The firm was granted tax perks by the government for its Bulacan cement plant in November 2006.
Philippines: A total of 38 laboratories that conduct proficiency tests on cement products have participated in the fourth round of the Cement Manufacturers Association of the Philippines' (CeMAP) proficiency testing programme. Twelve of the laboratories were from the Department of Public Works and Highways (DPWH), 15 from CeMAP members and 11 were non-member or private laboratories. These laboratories are subjected to proficiency test as a requirement for the renewal of their DPWH certificate of accreditation.
"Participation in the proficiency testing programme is a crucial component in our responsibility to ensure that only quality cement products are available in the market," said CeMAP president Ernesto Ordoñez.
Ordoñez disclosed that the programme's first round in 2006 only had CeMAP member laboratories, while rounds two and three involved both CeMAP member and DPWH laboratories. Round four was significant as all the private laboratories involved were required to seek DPWH accreditation. Ordoñez added that this proficiency testing is the first and only one in Southeast Asia. CeMAP intend to conduct the testing annually to monitor the competency and performance of the laboratories.
Philippines: Holcim Philippines has plans to invest US$350m to US$450m on building a new 2Mt/yr cement plant due to increased demand and sales in the third quarter. This quarter is normally a weak season for the construction industry because of monsoon rains.
Holcim Philippines' chief operating officer Roland van Wijnen said that cement demand remained robust on account of sustained government infrastructure spending and steady rollout of residential and commercial projects. The Cement Manufacturers Association of the Philippines (CEMAP) has reported a growth rate of 20% since October 2011.
Holcim Philippines reported a 22.5% growth in its net income to US$61.5m in the first nine months of 2012 from US$50.3m in the same period of 2011. Revenues for the past nine months reached US$491m, an increase of 22.5% year on year. However, third quarter earnings in 2012 declined to US$12.5m from US$15.2m in 2011. The company attributed this to having to import clinker to augment production given that several of its facilities were under preventive maintenance.
"The challenge for us is to meet increasing demand over the longer term. We have begun reactivating our idle facilities, beginning with our terminal in Calaca, Batangas in 2011. Our grinding plant in Mabini will be operational by the third quarter of 2011," said van Wijnen. Holcim Philippines is now preparing a proposal for a new cement plant to be submitted for board approval in the first half of 2013. If built this will boost the firm's cement capacity to about 9.5Mt/yr with a completion date of 2016.
Philippines: Cemex has announced that it is planning to expand the cement production capacity of its APO plant in the Philippines by 1.5 Mt/yr. Through an investment of approximately US$65m, the company will increase production and strengthen its distribution network to better serve high-demand areas throughout the country. The increase is expected to be operational by the first quarter of 2014.
With this new investment, Cemex says that it will keep pace with the Filipino market's rapid growth. The country registered a GDP growth of 6.1% in the first half of 2012, according to its National Statistical Coordination Board. The Metropolitan Manila Development Authority has begun multiple infrastructure projects as the country recovers from damage caused by extreme weather conditions.
"Infrastructure development has been one of the constant needs of the country and it has to be addressed with urgency," said Pedro Palomino, president of Cemex in the Philippines. "We are proud to be a part of the development of the Philippines and wish to be a long-term partner on its path to a prosperous, sustainable future."
Coal ash seems to be in short supply in the Philippines. Lafarge Republic has signed a deal with a local energy producer to buy coal ash from a new 600MW coal plant.
Although the cost of the deal was not announced, the agreement will run from when the plant starts operation until 2019. This move follows a similar arrangement by Cemex Philippines in June 2012. In that instance Cemex agreed to purchase coal ash from the 200MW Kepco SPC Power Corp plant in Naga, Cebu for US$0.95/t.
Distinctively both arrangements were set up in conjunction with local government. For the Lafarge deal part of the agreement involved donating at least 10,000 bags of cement per month for use in various infrastructure projects of the province. Bataan governor Enrique Garcia put the value of the deal at US$1.19m/yr. For the Cemex deal the Cebu Provincial Government signed the agreement. In November 2009 Cebu Province and Kepco entered into an Ash Disposal Agreement, where Cebu Province was granted exclusive rights to the ash produced by the power plant.
Adding to the suspicion that the Philippines lacks sufficient coal ash, back in the autumn of 2011, the Cement Manufacturers' Association of the Philippines (CeMAP) asked the Department of Trade and Industry (DTI) to impose mandatory quality standards on raw materials, such as coal ash. This followed accusations by CeMAP that poor quality coal ash might be behind complaints from contractors working on infrastructure projects. In 2009 a DTI profile on the cement industry placed the demand for Portland cement at 73% and the demand for pozzolan cement at 27% of the total.
Cement sales in the Philippines have been steadily growing over the last decade. Lafarge Republic announced in August 2012 that it was increasing its capacity to just below 9Mt/yr in 2013. Around the same time CeMAP released data showing that sales were up 20% year-on-year for the first half of 2012. The local industry reported combined sales of 15.6Mt in 2011. Previous to this, Holcim Philippines announced the US$9.46m upgrade to a previously closed mill in Batangas.
Philippines: Lafarge Republic has signed a deal with the provincial government of Bataan and GNPower Mariveles Coal Plant to buy coal ash from the latter company's 600MW power plant.
Lafarge Republic, formerly Republic Cement, said the deal will start once the power plant begins producing coal ash. It will expire in November 2019. The company didn't provide financial details of the deal.
In a transaction announced in June 2012, Cemex Philippines said it will buy for around US$1 each ton of coal ash to be produced by the 200MW power plant of Korea Electric Power in the central province of Cebu.
Philippines: Lafarge Republic plans to increase its production capacity by roughly 1Mt/yr starting in 2013 to meet strong public and private sector demand for cement in the Philippines.
The firm, whose production capacity was reported at 7.7Mt/yr in early 2011, said it will be refurbishing its grinding plant in Danao, Cebu and the mill at its plant in Norzagaray, Bulacan, yielding a capacity of 650,000t/yr in Visayas, as well as another 200,000t/yr in Luzon and 100,000t/yr in Mindanao.
"Based upon the strong demand growth for building materials during the first half of 2012 and our understanding of the order backlog of construction projects for the leading construction companies, we expect another year of sales and earnings growth in 2013," said Dong H Lee, country chief executive of Lafarge in the Philippines.