Displaying items by tag: Philippines
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.
Philippines: Cemex Philippines has announced that it will undertake a US$60m expansion at its APO Cement Plant in Cebu to increase its production capacity by 1.5Mt/yr. The plant currently has a production capacity of 2.9Mt/yr. It wants to keep pace with the rapid growth of the Philippines market. It is also expanding its Antipolo plant, which currently has a mixture of dry and wet process kilns.
Cemex Philippines has supplied cement to numerous road paving projects in the country, which is rapidly developing. Its president Pedro Palomino said, "All industries, all sectors of an economy, rely on a country's infrastructure to support their economic activities. Factors such as reliable transportation and communication networks ensure smooth business operations, that products and services are delivered efficiently, on time and at competitive costs."
Three stories this week from the Philippines build a complex picture of a booming cement industry. San Miguel purchased a 25% stake in Northern Cement, Lafarge Republic announced its capital expenditure budget for 2013 and the country's on-going price probe reported on its progress.
San Miguel's entry into the market should raise the most interest since its president stated that the company intends to spend US$750m on the construction of three cement plants. Each plant will have a cement production capacity of 2Mt/yr with construction timed to start in 2013 and finish by the end of 2015.
This level of investment, if it happens, surpasses the last major build announcement in the Philippines. In May 2013 Holcim released details of a US$550m plant in Bulacan with a capacity of 2.5Mt/yr. Some indication of the viability of San Miguel's plans may be gleaned from the comparative costs of the projects. San Miguel's plans will cost US$125/t of installed capacity, less than half of Holcim's US$220/t. Possible reasons for this difference may lie in San Miguel releasing the wrong figures or a reliance on lower build quality. However San Miguel's sheer size - its net income was US$2.25bn in 2011 - may itself herald the start of a major player in the domestic cement industry.
Meanwhile the Department of Trade and Industry (DTI) has continued to investigate why the price of cement has risen since 2012. Currently prices are about 5% above the suggested retail price for cement. Cement producers blamed the increases on a higher cost of coal.
The Philippines is currently experiencing massive cement sales increases. In 2012 sales rose by 17.5% to 18.4Mt from 15.6Mt in 2011. With a total capacity of 21Mt/yr and a capacity utilisation rate of 85% in 2012, this growth looks set to continue in 2013, as confirmed by more rises in sales in the first quarter.
Philippines: Lafarge Republic has set aside US$47m for capital expenditure in the Philippines in 2013 to increase cement production capacity to meet demand. President Renato Sunico made the announcement at the company's annual stockholders' meeting in response to a profit of US$23.6m in the first quarter of 2013, a 35% increase year-on-year from US$17.5m in 2012. He added that the industry expects total demand for cement to increase by 6 to 8% in 2013.
Lafarge Republic is increasing its capital expenditure for a new mill at its plant located in Teresa, Rizal which will have a capacity to produce 850,000t/yr from 2015 onwards. It is also automating the processes of some of its plants, including that in Norzagaray, Bulacan. Sunico added that various productivity improvement projects are also expected to deliver additional capacity to supply the rising cement consumption. He noted that the company is planning to add an additional 2.3Mt/yr in cement milling capacity by 2015 to its current capacity of 6Mt/yr.
"We are predominantly strong in Luzon because all our four plants are here. We wanted a national footprint so we are moving to Davao, Iloilo, Batangas and mostly to Cagayan," said Sunico. He added the company is relying on the growth of high-rise real estate projects, increasing remittances of overseas Filipino workers and increases in the call centre industry to boost cement demand.
In 2012 Lafarge Republic spent US$35.3m on improvements at its cement plant in Danao City, for its Iligan City pre-heater project and the construction of the feeding system for refuse-derived fuel (RDF) at its Bulacan plant.
Philippines: The Department of Trade and Industry (DTI) has asked cement producers in the Philippines to justify recent price hikes that led prices to exceed the suggested levels set by the agency.
Trade Undersecretary Zenaida C Maglaya said the three largest cement firms in the country - Holcim Philippines, Lafarge Republic, Cemex Philippines - have started submitting documents to support adjustments in their prices. Eagle Cement is set to meet with DTI and Board of Investment (BOI) officials to explain its pricing scheme. Maglaya said one of the large cement manufacturers had made a submission but had yet to complete all requested data due to 'antitrust issues', referring to laws addressing anti-competitive behavior among corporations.
In April 2013, Maglaya said that cement companies had increased their prices due to the higher cost of coal, a raw material that accounted for about 25% of the cement industry's manufacturing costs. Holcim reportedly raised its price by 11%, Lafarge by 7%, Cemex by 15% and Eagle Cement by 5%.
In 2012, the Cement Manufacturers' Association of the Philippines (Cemap) reported record-high sales of 18.4Mt, up by 17.5% from 15.6Mt in 2011. This was due to the boom in public and private construction projects. In the fourth quarter of 2012, 4.4Mt of cement were sold compared to 4Mt in the fourth quarter of 2011.
Philippines: San Miguel Corporation has purchased a 35% stake in Northern Cement Corporation for US$72.1m and plans to finance the aggressive expansion of the company. San Miguel president Ramon Ang said the conglomerate would spend US$750m for the construction of new cement plants for Northern Cement, a company that is controlled by San Miguel chairman Eduardo Cojuangco.
Ang, who is also the chief of operations of San Miguel, said the company plans to expand the operation of Northern Cement by building three more plants at a cost of US$250m each.
Ang said that one plant would be built in the existing site in Pangasinan, another in Southern Luzon and a third in Cebu. Each plant will have a capacity of 2Mt/yr.
"All of these projects will happen within 2013 and are likely to be completed within two years," said Ang. "Eventually, San Miguel wants to build more plants to become the dominant cement manufacturing company in the Philippines." He added that Northern Cement aims to secure at least a 30% share of the cement market, which had 'huge potential.' "The revenue potential for each 2Mt/yr plant is estimated at US$200m/yr," he said.
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.