Displaying items by tag: Philippines

Philippines: Arsenio Balisacan, the chairman of the Philippine Competition Commission (PCC), says that the commission has 90 days in which to conduct an investigation into the local cement industry. It is expected to complete its probe in the first half of 2017, according to the Manila Bulletin newspaper. The investigation period follows the point at which the PCC found reasonable grounds of alleged violations of competitive practice. Potential fines the local industry could face are US$2m for a first offence and US$5m for a second.

The PCC announced in early March 2017 that was preparing to investigate the cement sector for alleged violations of competitive practice following a legal statement by Victorio Dimagiba, the head of Laban Konsyumer – a consumer rights organisation, accusing the Cement Manufacturers Association of the Philippines (CEMAP), LafargeHolcim Philippines and Republic Cement and Building Materials of engaging in anti-competitive agreements.

Philippines: APO Cement Corporation, a subsidiary of Cemex Philippines, has ordered a 4.5MW waste heat recovery unit from China’s Sinoma Energy Conservation. Sinoma will build and operate it. The new unit is expected to reduce the negative effects of power cuts, save energy costs and reduce the cement plant’s carbon emissions. No delivery date or cost of the order has been disclosed.

Philippines: The Mines and Geosciences Bureau (MGB) has reduced the permit requirements for cement producers and other mineral extractors. Following orders by President Rodrigo Duterte to reduce red tape and redundancy in government the bureau says that cement producers and contractors holding quarry and industrial sand and gravel (ISG) permits are no longer required to secure mineral processing permits (MPP). The change is effective immediately. It has also clarified that the actual production of cement is covered already under the manufacturing sector and does not require an MPP. The MGB added that it is reviewing other existing policies on mining tenement requirements.

Philippines: The Cement Manufacturers Association of the Philippines (CEMAP) has asked that the local industry be treated fairly in an investigation by the Philippine Competition Commission (PCC). In a press statement, Ernesto M Ordoñez, President of CEMAP said that his association had not been notified or given a copy of a compliant filed by a legal firm, according to the Manila Bulletin. He added that the association’s lawyers had previously tried to find out more about the complaint in late January 2017 but had not had a reply.

"Fairness requires that both sides are heard. Not only were we not given a chance to be heard. More than a month after our letter to PCC asking for what the complaint is about so we could give our side, we still have no reply from PCC. We just found out about the nature of the complaint through the newspapers. This is one-sided and unfair, specially considering the track records of the subjects of the complaint," said Ordoñez.

The PCC announced in early March 2017 that was preparing to investigate the cement industry for alleged violations of competitive practice following a legal statement by Victorio Dimagiba, a former trade undersecretary, in August 2016 accusing CEMAP, LafargeHolcim Philippines and Republic Cement and Building Materials of engaging in anti-competitive agreements.

Philippines: The Philippine Competition Commission (PCC) is preparing to investigate the cement industry for alleged violations of competitive practice. It says it has found reasonable grounds to proceed to a full administrative investigation on the cement industry for possible violations of Sections 14 and 15 of the Philippine Competition Act, according to the Philippine Star newspaper. This follows a legal statement by Victorio Dimagiba, a former trade undersecretary, in August 2016 accusing the Cement Manufacturers Association of the Philippines (CEMAP), LafargeHolcim Philippines and Republic Cement and Building Materials of engaging in anti-competitive agreements.

Dimagiba has accused the cement producers of striking illegal agreements including, “restricting competition as to price or components thereof or other terms of trade, abusing their dominant position by engaging in conduct that substantially prevents, restricts, or lessens competition, imposing barriers to entry, or committing acts that prevent competitors from growing within the market.” He has also alleged that Ernesto Ordonez, the head of CEMAP, has used the trade association to justify violating the Philippine Competition Act, as well as maintaining prices of domestic cement in the retail market ‘unreasonably’ high.

Ordonez responded to the claims saying that he was puzzled about the PCC’s decision and that CEMAP had not been informed about a preliminary inquiry.

Philippines: Eagle Cement is planned an initial public offering (IPO) of US$183m to partly pay for a US$249m cement plant it wants to build in Cebu. The plant will have a cement production capacity of 2Mt/yr when complete, according to the Philippines Star newspaper. The project will also include building a distribution centre and marine terminals in Southern Luzon, Visayas and Mindanao regions. Additional financing will be sourced though debt funding and internal sources. Construction is scheduled to start in the fourth quarter of 2017 and the project is anticipated to be finished in the first quarter of 2010.

Philippines: Cement sales rose by 6.6% year-on-year to 26Mt in 2016 from 24.4Mt in 2015 the Cement Manufacturers Association of the Philippines (CEMAP) has said. CEMAP president Ernesto Ordonez attributed the increase in sales to ‘continuing momentum for increased infrastructure,’ according to the Philippines Star newspaper. Despite this sales, volumes fell in the fourth quarter of the year. Ordonez blamed this on the run-up to the elections in 2016 and bad weather. Increased public and private infrastructure spending is expected to keep the local cement industry buoyant in 2017.

Vietnam: Data from the General Department of Vietnam Customs has shown that exports of cement fell by 7.1% year-on-year to 14.7Mt in 2016 and by 16% year-on-year to US$561m in value. Bangladesh and the Philippines remained the major importers of cement and clinker from Vietnam in 2016, according to the Vietnam News newspaper. The Philippines imported 3.8Mt of cement and clinker worth US$185m from Vietnam in 2016 and Bangladesh imported 4.7Mt worth US$141m, accounting for 33% and 25.1% respectively of the country’s total clinker and cement exports in 2016. Increased competition in export markets has been blamed on rival products from Thailand and China.

Philippines: Holcim Philippines’ Bacnotan and Norzagaray cement plants have won awards for energy efficiency at the 2016 Don Emilio Abello Energy Efficiency Awards. The plants won Awards of Recognition for representing the Philippines in the Association of Southeast Asian Nations (ASEAN) Competition Best Practice for Energy Management in Buildings and Industries. The La Union plant was cited for its use of alternative fuel and raw materials to reduce its coal consumption, while Bulacan was recognized for its best practices in energy management through process improvements.

Plants operated by Holcim Philippines in Misamis Oriental and Davao City picked up awards for energy efficiency in 2015. In 2014, the company’s Bulacan plant was elevated to the Hall of Fame for receiving the Outstanding Award for three consecutive years.

The Don Emilio Abello Energy Efficiency Awards, run by the Department of Energy, recognise firms that significantly reduce their energy consumption. Participating companies submit consumption reports that are evaluated by energy officials from the public and private sector. The award is a tribute to Emilio Abello, the former Meralco chairman and chief executive officer.

As a companion to the trends based article in the December 2016 issue of Global Cement Magazine, here are some of the major news stories from the industry in 2016. Remember this is just one view of the year's events. If you think we've missed anything important let us know via LinkedIn, Twitter or This email address is being protected from spambots. You need JavaScript enabled to view it..

HeidelbergCement buys Italcementi
Undeniably the big story of the year, HeidelbergCement has gradually acquired Italcementi throughout 2016. Notably, unlike the merger of Lafarge and Holcim, the cement producer has not held a party to mark the occasion. Instead each major step of the process has been reported upon incrementally in press releases and other sources throughout the year. The enlarged HeidelbergCement appears to be in a better market position than LafargeHolcim but it will be watched carefully in 2017 for signs of weakness.

LafargeHolcim faces accusations over conduct in Syria
The general theme for LafargeHolcim in 2016 has been one of divestments to shore up its balance sheet. However, one news story could potentially sum up its decline for the wider public. In June 2016 French newspaper Le Monde alleged that Lafarge had struck deals with armed groups in Syria, including so-called Islamic State (IS), to protect its assets in 2013 and 2014. LafargeHolcim didn’t deny the claims directly in June. Then in response to a legal challenge on the issue mounted in November 2016 its language tightened to statements condoning terrorism whilst still allowing some wriggle room. As almost all of the international groups in Syria are opposed to IS, should these allegations prove to be true it will not look good for the world’s largest cement producer.

China and India balance sector restructuring with production growth
Both China and India seem to have turned a corner in 2016 with growing cement production and a generally more upbeat feeling for the industries. Both have also seen some high profile consolidations or mergers underway which will hopefully cut inefficiencies. China’s focus on its ‘One Belt, One Road’ appears to be delivering foreign contracts as CBMI’s recent flurry of orders in Africa attests although Sinoma’s equipment arm was losing money in the first half of 2016. Meanwhile, India may have damaged its own growth in the short term through its demonetisation policy to take high value Indian rupee currency notes out of circulation. In November 2016 cement demand was believed to have dropped by up to half as the real estate sector struggled to adapt. The pain is anticipated to carry on until the end of March 2017.

US industry growth stuck in the slow lane
The US cement industry has failed to take off yet again in 2016 with growth lagging below 5%. The United States Geological Survey (USGS) has reported that clinker production has risen by 1% in the first ten months of 2016 and that it fell in the third quarter of the year. In response, the Portland Cement Association (PCA) lowered its forecasts for both 2016 and 2017. One unknown here has been the election of President-elect Donald Trump and the uncertainty over what his policies might bring. If he ‘goes large,’ as he said he wants to, on infrastructure then the cement industry will benefit. Yet, knock-on effects from other potential policies like restricting migrant labour might have unpredictable consequences upon the general construction industry.

African expansion follows the money
International cement producers have prospered at the expense of local ones in 2016. The big shock this year was when Nigeria’s Dangote announced that it was scaling back its expansion plans in response to problems in Nigeria principally with the devaluation of the Naira. Since then it has also faced local problems in Ghana, Ethiopia and Tanzania. Its sub-Saharan competitor PPC has also had problems too. By contrast, foreign investors from outside the continent, led by China, have scented opportunity and opened their wallets.

Changes in store for the European Union Emissions Trading Scheme
A late entry to this roundup is the proposed amendment to the European Union (EU) Emissions Trading Scheme (ETS). This may entail the introduction of a Border Adjustment Measure (BAM) with the loss of free allowances for the cement sector in Phase IV. Cembureau, the European Cement Association, has slammed the changes as ‘discriminatory’ and raised concerns over how this would affect competitiveness. In opposition the environmental campaign group Sandbag has defended the changes as ones that could put a stop to the ‘cement sector’s windfall profits from the ETS.’

High growth shifts to Philippines and other territories
Indonesia may be lurching towards production overcapacity, but fear not, the Philippines have arrived on the scene to provide high double-digit growth on the back of the Duterte Infrastructure Plan. The Cement Manufacturers Association of the Philippines (CEMAP) has said that cement sales have risen by 10.1% year-on-year to 20.1Mt in the first three quarters of 2016 and lots of new plants and upgrade projects are underway. The other place drawing attention in the second half of the year has been Pakistan with cement sales jumping in response to projects being built by the China-Pakistan Economic Corridor.

Global Cement Weekly will return on 4 January 2016