- A Japanese cement manufacturer, Taiheiyo Cement, announced Tuesday that the construction of a new production line worth P15 billion in Cebu, Philippines is underway to increase production capacity.
- The “Build, Build, Build” program has helped accelerate demand for cement.
- A Philippines’ market share increase by 10% from the current 7% is expected as a result of increased capacity.
The new production line is an answer to the surging demand for cement in the Philippines, thanks to the increase in housing, commercial, and infrastructure investments.
Taiheiyo Cement Philippines, Inc. estimated a 30% demand increase from 2015 to 2019 recording 32 million tons of cement. The demand is expected to grow by 5.3% in the first quarter of 2021 as the economy recovers from the Covid-19 impact.
The project, valued at P15 billion, includes a state-of-the-art facility employing novel and advanced technologies from developers in Europe and other leading global technology providers.
“The new Taiheiyo Cement expansion project is a strategic investment not only in the context of the President’s ‘Build, Build, Build’ program, but also from the perspective of meeting the demand of our country’s economic recovery. This is estimated by both the World Bank and the International Monetary Fund to reach 6.2% to 6.8% in 2021,” said Ramon Lopez, a Secretary of Department of Trade and Industry.
Further, the expansion promises to increase TCPI’s cement capacity by 50% in the immediate term and by 150% in the medium term. The enhanced capacity is projected to increase Taiheiyo’s current Philippine market share from 7% to 10%.
Part of the company’s mission is to improve the logistics infrastructure and promote sustainability. TCPI will install a 2-kilometer marine belt conveyor, expand the berth and jetty in San Fernando, Cebu, and adopting energy-efficient production processes to reduce emissions by 10%.
The Philippines is the third-largest cement importer in the world after the US and China. In 2019, the country’s cement imports valued at $543.9 million, up 213.8% on average from 2015.
Japanese investments in the Philippines are pouring in this year. Yokowo invested $4.8 million to build a new wiring harness manufacturing facility, and Yokoisada announced production expansion for face masks.