Displaying items by tag: Department of Trade and Industry

Congratulations to Taiheiyo Cement Philippines (TCPI) this week for inaugurating its new 3Mt/yr production line at its Cebu plant. The US$220m line replaces the old line at the site that was closed in late 2021.

The plant was originally built by Grand Cement Manufacturing in the early 1990s. Japan-based Taiheiyo Cement took over in 2001 and later made the decision to upgrade the site in 2017. It then contracted China-based Anhui Conch and Sinoma (Handan) Construction for the project in 2021 and groundbreaking took place in mid-2022. Commercial operation of the new line was previously scheduled from May 2024. TCPI has also invested around US$140m in related projects such as its Jetty and Marine Belt Conveyor project, which links the Cebu plant to the coast via a conveyor. Other parts of this expenditure encompass the Luzon Distribution Terminal Project at Calaca in Batangas and general port development in San Fernando.

The Department of Trade and Industry (DTI) was keen to promote this example of a foreign-owned company investing in local manufacturing. DTI Secretary Fred Pascual pointed out that Japan is the country’s “second-largest trading partner and third-largest source of foreign investment.” He also linked the project to the national Build Better More infrastructure development programme and the Tatak Pinoy Act that was introduced in early 2024 to promote local industry. Along these lines, Republic Cement was awarded the Domestic Bidder’s Certificate of Preference this week. It is the first cement company to receive it. The initiative promotes the use of local manufactured materials in government projects as part of the Tatak Pinoy Act. As one might expect, the Cement Manufacturers Association of the Philippines (CEMAP) supports the Tatak Pinoy Act. It voiced its support for the legislation in June 2024 when the DTI started to implement it. It noted that cement imports were just under 7Mt/yr in 2023 despite the anti-dumping duties imposed on a number of Vietnam-based producers and traders. This compares to a local production capacity of nearly 50Mt/yr.

CEMAP mentioned that new production lines from both TCPI and Solid Cement were expected in 2024. The latter project is a new production line being built at Solid Cement’s Antipolo plant near Manilla in Rizal province. Cemex Philippines held a groundbreaking ceremony for the 1.5Mt/yr line at its subsidiary back in 2019. However, Cemex said it was selling its Philippines-based business to DMCI Holdings and related companies in April 2024. As part of this process Cemex sold its local cement brands to the Consunji family, the owners of DMCI Holdings, in June 2024. Regulatory approval of the divestment is still pending but the sale of the brands suggest that the transaction is progressing. Completion is expected by the end of 2024. Operation of the new line at the Antipolo plant is anticipated from September 2024.

Another forthcoming plant project was announced by PHINMA Corporation in June 2024. It signed a joint venture deal with investment company Anflo Group to build a 2Mt/yr cement plant in Davao del Norte. The project is scheduled to be operational by 2026. Cement from the plant will be marketed under the Union Cement brand. The sums involved suggest a grinding plant but PHINMA’s cement division, Philcement Corporation, is involved with both manufacture and importation. PHINMA also signed a deal to buy Petra Cement in May 2024. The latter company runs a 0.5Mt/yr cement grinding plant in Zamboanga del Norte. PHINMA re-entered the cement market in the late 2010s when it bought the Union Cement brand and built a cement processing plant at Mariveles, Bataan in 2020.

The battles between cement producers and importers continue to play out in the Philippines as the country’s infrastructure plans gather pace. Yet the balance seems to be tilting more towards the favour of the local manufacturers at the moment, as new capacity gets proposed and built. Anti-dumping duties on imports, particularly those from Vietnam, have now been followed up with local procurement rules in the guise of the Tatak Pinoy Act. Whether this is enough remains to be seen. This kind of environment and the departure of Cemex may also start to revive questions about whether any other foreign-owned cement companies might be considering their options too.

Philippines: The Department of Trade and Industry (DTI) has urged local cement manufacturers to apply for Tatak Pinoy certification, as the government promotes Philippine-made products. Local manufacturer Republic Cement was awarded the first Domestic Bidder’s Certificate of Preference (DOBID), ensuring the use of local materials in government projects.

DTI Undersecretary Rafaelita Aldaba said "One of our main priority industries under Tatak Pinoy is manufacturing. Hence, we really want local manufacturing companies to apply for the DOBID certificate so we can help them expand their market, boost growth and enhance competitiveness."

Philippines: The Department of Trade and Industry (DTI) is enforcing stricter measures against non-compliant cement importers to protect the local market from substandard products. The DTI Bureau of Philippine Standards recently made a suspension after it conducted a market surveillance in Iloilo as part of its intensified monitoring of cement imports entering the country. The Cement Manufacturers Association of the Philippines (CeMAP) praised the recent actions of the DTI against cement importers, arguing that there has been ‘excessive’ and ‘unfairly priced’ volume of imported cement in the country to the detriment of local manufacturers, according to The Philippine Star.

CeMAP said “This recent action of the DTI-BPS sends a resounding message that non-compliance and unfair trade practices will not be tolerated. The impact of the DTI’s actions extend beyond the cement industry itself. A strong and competitive local cement sector is vital in supporting the Philippines’ continued infrastructure development and economic growth.”

Philippines: The Cement Manufacturers Association of the Philippines (CMAP) is working with the government to attract both domestic and foreign investment to the sector to expand domestic production at low cost. Alongside the Philippine Iron Steel Institute (PISI), CMAP also renewed calls for the promotion of locally produced construction materials with the help of the Department of Trade and Industry (DTI), according to the Manila Bulletin newspaper.

CMAP President Reiner Dizon said “If you buy locally and if there is a problem, it's easy to chase or ask the manufacturer because it's here in the Philippines. Imagine if there is a problem with the cement but it comes from another country, it's quite a complicated process.” Dizon further stressed that enjoying local produce also benefits the economy and fellow Filipinos by creating a circular advantage where profits are shared among the community.

DTI Assistant Secretary Mary Jean Pacheco said that the DTI promotes local construction products and demonstrates confidence that local suppliers provide quality products. Pacheco assured CMAP and PISI that the DTI will strive to advocate standardised products to ensure safety and quality when using construction materials.

Philippines: Taiheiyo Cement Philippines plans to install a second production line at its 0.8Mt/yr San Fernando cement plant in Cebu. The Philippines Department of Trade and industry says that the new line will more than double the plant’s capacity to 3Mt/yr. It will also entail an upgrade to reduce its total energy-related CO2 emissions by 10%. The Philippine Daily Enquirer newspaper has reported that the producer will additionally build a 700,000t/yr terminal at Calaca in Batangas. The facility will cost US$68.4m. Altogether, the company expects its growth plans to generate 2000 new jobs in the Philippines. The Philippines government has committed 6% of gross domestic product (GDP) to infrastructure investments annually.

Taiheiyo Cement Philippines previously indicated in August 2022 that the San Fernando cement plant might eventually expand to a capacity of 5Mt/yr. At that time, it expected to commission the new Line 2 in May 2024.

Special trade representative to the Philippine Trade and Investment Centre in Tokyo, Dita Angara-Mathay, said "The company's latest announcement materialises its plans to expand to Luzon from its long-time base in the Visayan region."

Philippines: Century Peak Cement Manufacturing has started distributed its cement products to the Visayas region. Its blended hydraulic and ordinary Portland cement product received quality standard certification from the Department of Trade and Industry in January 2023.

Century Peak Cement operates a plant at Pinamungajan in Cebu with associated limestone reserves. The unit has its own pier.

Philippines: The Department of Trade and Industry (DTI) has decided to impose anti-dumping duties on cement imported from Vietnam. Trade Secretary Alfredo E Pascual said that the dumping of Ordinary Portland Cement (OPC) and Blended Cement from Vietnam posed an "imminent threat of material injury to the domestic cement industry," according to the BusinessWorld newspaper. The duties will comprise 4 – 28% of the export price of OPC and 3 – 55% of the price of Blended Cement. The DTI has identified 11 cement companies from Vietnam that will be targeted with the anti-dumping tariffs.

A report by the Tariff Commission found that 53% of the total cement imported from July 2019 to December 2020 comprised product originating from Vietnam at dumped prices. Overall the country’s OPC and Blended Cement imports rose by 11% year-on-year to 5.90Mt in 2020 and by 16.2% to 6.85Mt in 2021. Imports rose by a further 7% year-on-year to 3.50Mt in the first half of 2022 compared to an average of 3.27Mt for the same half-year periods in 2019, 2020 and 2021. The TC said, "The existence of threat of material injury to the domestic industry is imminent in the near future, as indicated by the significant rate of increase of dumped imports into the Philippines capturing substantial market share, presence of price undercutting, price depression and price suppression.”

Philippines: The Department of Trade and Industry (DTI) has backed a recommendation from the Tariff Commission (TC) to repeal import duties on Ordinary Portland Cement and Blended Cement. The so-called safeguard measures were originally introduced in October 2019 for a period of three years, according to the Philippine Star newspaper. The latest investigation by the TC was started due to a request by the Cement Manufacturers Association of the Philippines (CEMAP). However, it found that the domestic cement industry was generally profitable and it said, “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.” CEMAP said it was saddened by the recommendation of the TC and that it would jeopardise the local sector’s progress.

Philippines: The Tariff Commission has reversed a decision recommending that the government implement anti-dumping duties on imports of cement from Vietnam. Việt Nam News has reported that the commission withdrew the recommendation after the Philippine government's Department of Trade and Industry ruled that imports from Vietnam do not have a harmful impact on the domestic cement industry.

Philippines: The Tariff Commission (TC) has ordered that new duties be applied to imported Vietnamese cement for a five-year period up to 2027. The Department of Trade and Industry concluded a dumping investigation into Vietnamese cement exports to the Philippines in mid-October 2022, according to the Manila Bulletin newspaper. It found that imports of ordinary Portland cement (OPC) and blended cement from Vietnam were not injurious to the domestic cement sector at present. However, it also found the threat of material injury to be 'imminent.' This is due to Vietnam's 'substantial' cement overcapacity, which may enable it to rapidly increase its exports. The conclusion provided the basis for the TC's latest order.

Any new duty will replace provisional 2.7 - 32% duties introduced in December 2021. Previously, strong competition reportedly prevented the measures from causing price rises. Commentators now predict that the TC's proposed measures will result in a rise in prices.