Lafarge to reopen revamped Danao plant, Philippines

Lafarge Republic is to reopen its facility in Dano, Cebu, in the Philippines as part of the company’s drive to raise output due to increasing domestic sales.

“The revamped plant in Danao City is one of several capacity expansion projects being undertaken by LRI to respond to the growing demand for building materials and the order backlog of construction projects of the leading construction companies.” Lafarge Republic said in a disclosure to the Philippine Stock Exchange.

The plant will be able to produce an additional 1Mta in the first half of this year. It is targeting to supply another 200,000tpa in Luzon, 650,000tpa in Visayas and 100,000tpa in Mindanao. The company is also debottlenecking its Norzagaray the mill in Bulacan.

Following muted growth in 2011 of 1.1 per cent to 15.63Mt, cement demand is expected to have increased by 10 per cent in 2012 to 17.9Mt. While the growth outlook for 2013 is more conservative, the Cement Manufacturers Association of the Philippines (CeMAP) has said it is optimistic for the year  due to expected increases in government spending on infrastructure.

Holcim Philippines has also begun reactivating its idle facilities beginning with its terminal in Calaca, Batangas and its grinding plant in Mabini will be operational  by 3Q13. It is also preparing a proposal for a new 2Mta cement plant to be presented to the board in the first half of this year.

Meanwhile, Cemex is to increase capacity at its plant in APO by 1.5Mta through an investment of US$65m. The project is expected to be operational by 2014.