Holcim Philippines Inc will set aside PHP2bn (US$44.8m) for its capital expenditures (capex) this year to boost capacity in a bid to meet rising demand amid sustained construction activity nationwide. The company noted that government spending for infrastructure, the expansion of the private commercial, residential and industrial developments and the increased pace of public-private partnerships (PPP) will provide greater opportunities for the company. Holcim Phillipines will increase its capacity to 10Mta of cement.
"We have to invest more than we invest today to be able to meet demand. Maybe the whole expansion project will cost US$4m," said Holcim Philippine president and chief executive officer, Eduardo Sahagun, to the press.
The company posted a 10.10 per cent decline in profit in 1Q15. Its net income reached PHP1.5bn in January to March from PHP1.67bn during the same period last year. The company recorded higher sales at PHP8.58bn in the first quarter this year from PHP8.05bn last year.
Mr Sahagun said it used higher volumes of imported clinker given the strong demand and changes in plant shutdown schedules. "The strong demand for cement required us to use imported clinker, which costs almost twice as much as our own, to support the market and meet our commitment to provide stable supply," he added.