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.
