Cemex sees Philippine infrastructure overhaul driving demand

Philippine’s President Rodrigo Duterte’s infrastructure overhaul is expected to drive demand for cement and create a “multiplier effect” in the construction sector, Cemex says, according to a report by ABS–CBN News.

Paul Arcenas, vice president investor relations, Cemex Holdings, said the private sector will match spending by government on more roads, bridges, railways and airports.

“We continue to remain optimistic about the infrastructure program, as the government creates this multiplier effect owing to public construction,” Arcenas told ANC’s “Market Edge with Cathy Yang.”

Moreover, Arcenas said the government’s recent decision to lift a moratorium on mining for limestone and other non-metallic substances would help Cemex’s business.

Cemex, through its ownership of Apo Cement and Solid Cement, is the third largest producer in the Philippines. Apo operates a 3.8Mta plant in Naga, while Solid has a 1.9Mta plant in Antipolo which it is in the process of upgrading to add an extra 1.5Mta of capacity.