Holcim Philippines invests to keep up with competition

Print this page

Philippines: Holcim Philippines is set to invest US$54m over the next two years to expand capacity and brace for ‘cut-throat’ competition that it says has affected is profitability. In the first six months of 2017, Holcim Philippines’ net profit fell by 42.6% year-on-year to US$41.5m on the back of a 16.7% decline in net sales to US$344.2m. For the second quarter alone, its net profit slumped by 46.2% year-on-year to US$22.9m. The decline in income was attributed by the company to lower sales alongside higher production input costs. Nonetheless, the company said that it would continue to invest to raise its cement production capacity from 10Mt/yr to 12Mt/yr to support demand as the government rolls out its flagship infrastructure projects.

In a statement Holcim Philippines president and chief executive Sapna Sood said that the investment indicated the company's continued commitment to the development of the country and its customers. "Our investments ensure that Holcim Philippines will continue to provide a reliable supply of an essential building material as cement demand increases in the country as these projects come on stream," she said. "The company will invest US$54m in the next two years to add 2Mt/yr to its current cement capacity by the first half of 2019, particularly in La Union and Davao."

Last modified on 02 August 2017

Register for the Global Cement Weekly email newsletter

Global Cement Weekly is Global Cement’s weekly email newsletter. Keep up to date with cement industry news, analysis, diary dates and news of people in the sector.

Register >

URL: https://www.globalcement.com/news/item/6382-holcim-philippines-invests-to-keep-up-with-competition

© 2024 Pro Global Media Ltd. All rights reserved.