Cement makers in the Philippines fear the influx of undervalued imported clinker cement once the Board of Investments grants tax and fiscal incentives to cement projects based on imported clinker, a move that would kill the country’s lone integrated manufacturing industry.
Ernesto M. Ordonez, president of the Cement Manufacturers Association of the Philippines (CeMAP), said in an interview that the move of the BoI to allow the registration of clinker based cement would spell doom to the lone integrated manufacturing industry in the country.
“By giving incentives to clinker based cement projects, we are just announcing to the whole world that we want clinker cement and not the huge investments in kiln for cement manufacturing,” Ordonez stressed.
Ordonez stressed that kiln accounts for 80 percent in the cost of putting up a cement manufacturing plant while clinker facility investment accounts for only 20 percent.
“This move by the BoI is going to kill the industry,” Ordonez said.
Source: Manila Bulletin