Extending incentives to clinker-based projects or to investments in cement grinding mills will negate the forward and backward integration that has been making the local cement industry a strong and consistent contributor to the national coffers, according to the Cement Manufacturers Association of the Philippines (CeMAP).
According to a report in local newspaper, the Philippine Star, the association has argued that new investors looking to set up grinding mills will only make the local cement industry more import-dependant and might cause the industry an ‘untimely demise.’
CeMAP has reiterated its appeal to the Department of Trade and Industry (DTI) to reconsider its plan to provide incentives to grinding mills, close on the heels of DTI’s recent announcement to do so in its 2010 Investment Priorities Plan (IPP).
The association warned that if grinding mills are set up in the country due to these incentives, the Philippines might again become the dumping ground for substandard clinker.
CeMAP also argued that the entry of new players to the cement industry will only worsen the current oversupply-under capacity problem plaguing many cement makers.