Holcim Philippines has received approval from its Swiss parent company to construct a US$550m cement plant in Bulacan, to support brisk private and public-sector investment.
Speaking to local press, the company's CEO, Ed Sahagun, said the new plant will have a capacity of 2.5Mta and is expected to come on-stream in 2016.
“The timing of the construction of new plant is perfect because the country is doing well in a lot of aspects,” Mr Sahagun said.
The company is currently resuming operations at its grinding facility in Mabini, Batangas by the third quarter of this year which will help the company ensure steady supply as demand rises.
Holcim Philippines also reported that its first quarter net income grew by 77.2 per cent to PHP1.43bn from PHP807m posted in the same period last year on surge in demand and higher cement prices.
Philippines, infrastructure projects and sustained demand for housing have been supporting local sales. Previously, Holcim had earmarked the Philippines (along with Indonesia) as one of Asia's most promising growth markets for 2013. Last year demand rose by 10 per cent YoY to 17.19Mt. First-quarter 2013 also edged ahead by 3.4 per cent to 4.787Mt, according to data from the Philippine Cement Manufacturers Association.