Lafarge Republic Inc eyes further expansion, Philippines

Lafarge Republic Inc eyes further expansion, Philippines
29 May 2013

Lafarge Republic Inc (LRI) is considering further increases in capacity over the next two years as it continues to expand its production base to respond to the growing demand for building materials in the Philippines.

Speaking to reporters at the sidelines of the company’s annual shareholder meeting, company President Renato Sunico, told local press that the company is considering an additional 2.3Mt of milling capacity by 2015 on top of its current capacity of 6Mt.

For this year, LRI has set aside PHP2bn in capex for a new mill at its plant located in Teresa, Rizal which will have a capacity to produce 850,000tpa by 2015. He said they are also automating the processes of some of its plants, including that in Norzagaray, Bulacan.

In April, LRI reopened its Danao facility as part of efforts to expand its production capacity. Following the revamp of the plant, which included a third generation separator, a fully-automated weigh feeder system, and state-of-the-art control system, LRI will have the capacity to supply an additional 1Mta starting in the first half of 2013.  Specifically, LRI is targeting to supply an additional 200,000tpa of cement in Luzon, 650,000tpa in Visayas and another 100,000tpa in Mindanao.

LRI reported a net income of PHP1bn in the first quarter of 2013, up 35 per cent from PHP740.74m last year. It attributed higher earnings to increase in volume and improvements in the average selling price.

Published under Cement News