Displaying items by tag: Asean Free Trade Area

Indonesia: The Indonesia government says that it will ask for compensation if the Philippines Tariff Commission extends tariffs on cement. The Manila Bulletin newspaper has reported that the government suggested that the fellow Association of Southeast Asian Nations (ASEAN) member state should take more targeted measures against any country responsible for cement dumping, in line with the bloc’s rules.

In 2019 – 2021, Indonesia exported 532,000t of cement to the Philippines, constituting 2.7% of the country’s cement imports. Vietnam, meanwhile, exported 15.8Mt (80%).

Philippines: The Philippines imported 6.47Mt of cement from Vietnam in 2021, 91% of a total 7.11Mt of cement imported in the year. The Cement Manufacturers Association of the Philippines (CeMAP) recorded that total imports increased by 14% year-on-year from 6.25Mt of cement in 2020, while imports from Vietnam increased by 20% year-on-year from 5.4Mt.

The Manila Bulletin newspaper has reported that Philippine cement producers increased their production capacity by 23% year-on-year to 35.3Mt/yr at the beginning of 2022. CeMAP projected further capacity growth of 55% to 54.8Mt/yr by the end of 2025, against a domestic demand that year of 66Mt/yr.

Thailand: The cement business of Siam Cement Group (SCG) reported a 22% decrease in profit in 2015 to US$286m from US$368m in the 2014. Its revenue fell by 3% year-on-year to US$5bn from US$5.2bn. It blamed the performance on poor market recovery in Thailand. Overall, SCG reported increased profits due to its chemicals business.

"As for the progress of SCG's investments in the Association of Southeast Asian Nations (ASEAN), we are continuing as planned and are able to accommodate and meet the market demand dynamics. The cement plant in Indonesia commenced commercial operation in November 2015, while the cement plants in Myanmar and Laos are expected to begin operation in the middle of 2016 and 2017, respectively. These investments are integral to the ability to support our market expansions and serve our ASEAN customers' demands," said Roongrote Rangsiyopash, President and CEO of SCG.

SCG expects that the ASEAN Economic Community will advance its businesses in key export markets in Cambodia, Laos, Myanmar and Vietnam in 2016. Positive economic trends are also anticipated in Thailand due to government stimulus policies and projects.

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.