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News Cemex Philippines

Displaying items by tag: Cemex Philippines

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Cemex Philippines secures biosolids supply

10 February 2023

Philippines: Cemex Philippines has secured a contract with Manila Water Company for the supply of biosolids from sewage processing for use as alternative fuel (AF). Cemex Philippines has already taken receipt of 10t of biosolids at its Antipolo cement plant in Luzon's Calabarzon Region.

Cemex Philippines’ sustainability and public affairs director Christer Gaudiano said “As pioneers of the use of biosolids as AF in the country, we have just signed what will now create the series of significant steps towards making circular economy a reality."

Sustainability initiatives form one arm of Asian Development Bank (ADB) and the ASEAN Capital Markets Forum's Golden Arrow award for good management, which Cemex Philippines won for the second time on 9 February 2023.

Published in Global Cement News
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Cemex seeks to increase Cemex Philippines stake to 90% with a view to selling up

27 January 2023

Philippines: Cemex has launched an offer to acquire 12% of outstanding shares in Cemex Philippines, giving it a 90% stake in the company, for US$38m. Axis Negocios News has reported that the group is seeking to increase and consolidate its interests in Cemex Philippines in order to assess a potential divestment from its position.

In December 2020, Cemex increased its stake in its subsidiary Cemex Latam Holdings by 20% to 93%. It subsequently divested part of that business in 2022.

Published in Global Cement News
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Update on the Philippines, October 2022

12 October 2022

Cement imports are back on the agenda this week in the Philippines with the news that the Tariff Commission has backed repealing the duties currently being implemented. If it’s anything like what happened last time, back in 2019, the commission’s opinion will once again be passed back to the Department of Trade and Industry (DTI) for the final decision. The safeguard measure the commission wants to cut covers Ordinary Portland Cement (OPC) and Blended Cement. It summarised the situation as follows, “There is no existence of an imminent threat of serious injury and significant overall impairment to the position of the domestic cement industry in the near future.”

The commission reviewed the sector between 2019 and 2021 and concluded that the domestic cement industry maintained its market position, increased its mill capacities, stabilised its manufacturing costs and improved its profitability. It found that local producers recovered their profits in 2021, following the coronavirus pandemic. It also noted that imports continued to rise whilst the safeguard measure was in force. Volumes of imported OPC and blended cements increased at levels above 10% year-on-year in both the 2019 – 2020 and 2020 – 2021 periods. They also rose by 7% year-on-year to 3.51Mt in the first half of 2022 compared to the half-year average from 2019 - 2021. In the commission’s view, relaxing the duties on imported cement would slow price rises for both locally produced and imported cement leading to an overall national economic benefit.

Local cement producers in the Philippines are likely to be unhappy with the Tariff Commission’s recommendation. The Cement Manufacturers Association of the Philippines (CEMAP) spent the summer of 2022 lobbying for the safeguard measure to be extended past October 2022. It too pointed out that imports of cement had continued to grow even whilst the increased duties had been levied from 2019. A few days before the commission’s decision was published, APO Cement said that it had temporarily suspended operations at its Davao terminal. The subsidiary of Cemex Philippines blamed imports of cement, particularly from Vietnam, for the decision.

Yet, the local sector has been active over the last year with a number of capacity upgrades being launched or underway. In January 2022 the government gave tax breaks to San Miguel Equity Investments for the construction of a 2Mt/yr cement plant in Mindanao. In February 2022 San Miguel subsidiary Southern Concrete Industries said it was doubling the capacity of an upgrade to its grinding plant at Davao del Sur, with initial commissioning planned in mid-2022. Meanwhile, Solid Cement’s upgrade of a new production line at its integrated plant in Antipolo, Rizal, has been ongoing since it officially started in 2019. The current commissioning date for the subsidiary of Cemex is now expected in early 2024. In August 2022 Taiheiyo Cement Philippines held a groundbreaking ceremony for the start of construction of a new production line at its integrated San Fernando plant in Cebu. The US$85m project is due to be commissioned in mid-2024. Finally, importer Philcement revealed in late September 2022 that it had taken out a US$1.73m loan for an expansion and upgrades to its Mariveles cement terminal in Bataan.

Holcim Philippines’ president and chief executive officer Horia Adrain told local press in July 2022 that the cement sector was continuing to recover in 2022, following the coronavirus pandemic in 2020, but that the pace would be slower. And so it proved, with reduced revenue, earnings and profits reported by Holcim for the first half of 2022. Costs rose due to higher fuel and energy prices like elsewhere in the world but a construction ban in connection with the presidential election in May 2022 didn’t help either. Both CRH and Cemex Philippines reported a similar situation in their financial results. However, Eagle Cement did manage to raise its revenue in the same period.

The Tariff Commission has been explicit with its opinion about the impact of imports upon the local cement sector. Investment by the local producers has been forthcoming with a number of new plants and upgrades on the way. Finally, despite the market recovering since 2020, there has been less growth in the first half of 2022 due to global energy prices and the country’s elections. This last point has handed a gift to the cement producers as any further reductions in growth can be blamed on imports, whether it is connected or not. One thing is certain, if or when the safeguard measures are lifted, then the regular calls to restrict imports will resume just like they did prior to 2019.

Published in Analysis
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APO Cement suspends Davao cement terminal operations due to low sales

05 October 2022

Philippines: Cemex Holdings Philippines subsidiary APO Cement has suspended operations at its 25,000 bag/day Davao cement terminal. The Philippines Star newspaper has reported that the cement producer and importer cited low sales volumes, along with high operating costs, as the cause of its decision. It added that an 'influx' of Vietnamese cement imports had precipitated the situation. Cemex's Philippines supply chain vice president Edwin Hufemia said that the suspension will allow the company to keep its focus on its cement plant and other facilities in the Philippines.

Hufemia said “We remain committed to supporting the country’s development programme and the administration’s Build, Better, More infrastructure programme, and we assure the public that there will be no disruption to the supply and delivery of our cement."

Published in Global Cement News
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Cemex supplies cement for longest bridge in the Philippines

08 September 2022

Philippines: Cemex Philippines says that it was the sole supplier of cement for the construction of the Cordova Link Expressway, the longest bridge in the country. It supplied nearly 70,000t of cement for the project. It connects Cebu City to the municipality of Cordova on Mactan Island and spans a total of 8.9km standing on twin tower pylons reaching 145m in height. The bridge opened to road traffic in 2022.

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Solid Cement to commission expanded Antipolo cement plant in April 2024

22 July 2022

Philippines: Cemex subsidiary Solid Cement is installing a new US$356m, 1.5Mt/yr line at its Antipolo cement plant. When operational in April 2024, the line will increase the plant’s capacity by 79% to 3.4Mt/yr. Over the first four months of the project since March 2022, Solid Cement invested US$197m in silos and mechanical installation. The new 1.5Mt/yr line will use Low Temperature Clinker technology to reduce its CO2 emissions, and will also recycle waste hot gases for raw materials drying.

Solid Cement is building the plant using 6000t of its own Vertua reduced-CO2 cement, which it says will further reduce its net carbon footprint by 564t.

Philippines president and CEO Luis Franco said “We will maintain our active role in supporting the development of this nation, as we have done in the past 25 years.”

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Luis Guillermo Franco Carrillo appointed as head of Cemex Holdings Philippines

13 July 2022

Philippines: Cemex Holdings Philippines has appointed Luis Guillermo Franco Carrillo as its president and chief executive with effect from 1 June 2022. He has succeeded Ignacio Mijares, who will now lead Corporate Strategic Planning at the Cemex central office.

Franco Carrillo previously worked as the Builders Segment Vice President for Cemex Mexico. He holds over 23 years of experience with Cemex, since joining the company in 1999. Prior to his assignment to the Philippines, Luis worked in senior positions in the UK, Hungary and Mexico. He holds a bachelor’s degree in Chemical Engineering from the Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM) and a master’s degree in Business Administration (MBA) from the Stanford Graduate School of Business.

Published in People
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Department of Trade and Industry introduces temporary import duty on some Vietnamese cement

06 December 2021

Philippines: The Philippines Department of Trade and Industry has enacted a temporary duty on some imports of cement from Vietnam. The Manila Times newspaper has reported that the measure will be in force until April 2022 and only apply to ‘dumped’ cement. Importers will pay a duty of between US$1.02/t and US$10.50/t on ordinary Portland cement and between US$1.16/t and US$12.80/t on blended cement.

The measure follows a probe carried out on the basis of a petition by domestic cement producers APO Cement, Holcim Philippines, Republic Cement and Solid Cement. The probe found that the domestic cement industry had suffered a loss of market share and declining domestic sales between July 2019 and December 2020.

Trade Secretary Ramon Lopez said "We do not anticipate that these duties will result in an increase in the retail price of cement, because its effect on landed cost is minimal.” He added “Any price increases in imported cement will be discouraged by competition from domestic cement producers. The provisional anti-dumping duties will be imposed only on specific Vietnamese exporters found to be dumping cement to the Philippines. Vietnamese exporters who are not dumping can continue to export cement without having to post the provisional anti-dumping cash bond.”

Published in Global Cement News
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Cemex Philippines Solid Cement plant lifts new kiln into place

19 January 2021

Philippines: Cemex Philippines Solid Cement plant in Antipolo has lifted a new rotary kiln into position as part of a US$235m installation of a new production line at the site. Once complete the new line will add 1.5Mt/yr to the unit’s production capacity increasing the total to 3.4Mt/yr. The new production line will reuse waste hot gases to dry raw materials and high efficiency bag filters reduce improve emissions control. Cemex is also using its proprietary Low Temperature Clinker technology to reduce carbon dioxide emissions.

"This milestone demonstrates our full commitment to the development of the country and brings us closer to further strengthening our position in providing the infrastructure and building needs for economic development," said Ignacio Mijares, the chief executive officer (CEO) and president of Cemex Holdings Philippines.

China-based CBMI Construction has been contracted to build the new line. It lifted the new kiln in two days. Tong Laigou, chairman and general manager of CBMI Construction, said that the CBMI and Cemex Philippines' teams worked under strict protocols to secure the safety of the site.

Published in Global Cement News
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Cemex Philippines orders cement mill from Gebr. Pfeiffer

07 October 2019

Philippines: Cemex Philippines has ordered a MVR type mill for cement raw material grinding from Germany’s Gebr. Pfeiffer for a plant in Antipolo. The order also includes a MPS mill to grind coal. Gebr. Pfeiffer said that the order was received through a Chinese general contractor. No value for the order or timescale was disclosed.

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