The Board of Investments has approved the P12.128bn new cement facility of South Western Cement Corp, which is partly owned by the Yuchengco group.
The board registered the project under the pioneer status but with non-pioneer incentives and no income tax holiday bonus year based on the guidelines of the 2006 Investment Priorities Plan.
The new facility will have a capacity of 1.6Mta equivalent to 39.175 million bags annually. The facility will be located in Barangay Looc, Malabuyoc in Cebu.
The proposed plant is a fully integrated cement project with its own quarry in Malabuyoc. The plant will utilise an energy efficient dry process method that will use all the latest and most modern equipment designs to ensure optimum, safe and environment-friendly operations.
It will start commercial operations in 2011. The project is projected to generate a total of 317 new jobs.
This is the second cement project approved by the BoI in two weeks. Earlier, Eagle Cement Co., which is rumored to be partly owned by businessman Eduardo Cojuangco Jr., sought incentives for its new plant in Bulacan costing over P6 billion.
The two projects are expected to lower cement prices in the Philippines.
“The BoI board has set a pre-condition that the incentives would translate to much lower prices of cement,” the BoI said. “We cannot set price reduction formula since these firms will have different operating costs because they will be using different methods. This provision will ensure that incentives availed of would translate to benefit of consumers in terms of reduced prices.”