Mindanao region poised for higher cement demand

Currently in the Philippines, there are about 60 nationwide infrastructure development projects related to Build, Build, Build scheme and about 14 of these are in Mindanao. Most of those in Mindanao are still in the feasibility study stages and may start construction by next year.

Mindanao Development Authority (Minda) Assistant Secretary, Romeo Montenegro, said as there are no apparent shortages yet, there is also a continuing rise in the demand for cement and steel. They have yet to foresee up to what end where they see it peaking.

Mr Montenegro said the infrastructure projects seen today are mostly of private sectors such as hotels, malls, and real estate projects which still all increases the demand for steel and cement.

Holcim Philippines is aiming to keep ahead of demand by investing about PHP1.5bn (US$28m) at its Davao plant to increase the plant's cement capacity to 2.2Mta by 2019 from the current 1.4Mta. This project involves the installation of mechanized ship unloading and loading facility and increasing grinding capacity, said Holcim Philippines Senior Vice President for Sales, William Sumalinog.

With this amount Holcim Philippines is dedicated to invest in their Davao plant, Mr Sumalinog said it only shows their confidence of the industry especially with the infrastructure program of the current administration.

“When you look at the scenario, there's no shortage actually of cement. Also there are many other cement suppliers in Mindanao aside from Holcim Philippines unlike many years back that only Holcim is here in Davao City." said Mr Sumalinog.

He added the two Holcim Philippines plants in Mindanao has a capacity to produce about eight to nine million bags of cement per month.