Lafarge Republic sees increased market growth, Philippines

Lafarge Republic sees increased market growth, Philippines
09 July 2012

Having witnessed flat YoY sales in 2011, Lafarge Republic (formerly Republic Cement Corp) has said it expects market growth to accelerate on the back of increased government spending on infrastructure.

During the company’s annual stakeholders meeting, company president Renato C Sunico, said that almost flat nationwide cement consumption of 15.6Mt last year was due to reduced government infrastructure spending in the first three quarters of 2011. Cement prices also softened during the year and resulted in lower sales revenue for the company despite sustained sales. Supported by the increased cement demand from the private and commercial sectors, the company ended the year with a consolidated net income of PHP2.48bn (US$59m).

During the year, the company extended its local reach to new areas in Northern Luzon, Western Visayas, Southern Mindanao and launched a new blended cement called ‘Portland Duo.’

To address rising power and fuel costs, the company has been focussing on improving operational efficiency and increased the use of alternative fuels. Mr Sunico highlighted the Teresa cement plant’s Waste Heat Recovery Project, which received a Clean Development Mechanism certification from the United Nations Framework Convention on Climate Change (UNFCCC).

On its outlook, Mr Sunico stated: 'The company is targeting to further grow its current market and is also prepared to supply the expected cement demand as the government's infrastructure projects come on stream. As with 2011, fuel and power prices will remain a concern in 2012 but I'm confident that these costs can be managed with the company's use of more alternative fuels, efficient operation of its WHR system, cost-effective schedule of milling operations and other operational efficiencies,” says Mr Sunico.

In line with this, the company has recently inked a power supply deal with Masinloc Power Partners to supply electricity to Lafarge for five years commencing 26 December 2012.

Published under Cement News