Lafarge bullish on Philippine outlook

Lafarge bullish on Philippine outlook
19 September 2013

Lafarge Republic sees sustained cement demand growth in the Philippines through the year as the company prepares to lift capacity to meet future requirements.

While demand in the first half of the year is traditionally stronger for the local cement industry, the company remains bullish for the remainder of the year. “I think because of the continuing projects of the government, continuing projects in the commercial and residential sectors, there might still be a good growth in demand [this semester],” Mr. Sunico said, noting that cement demand grew by six per cent in the first six months.

For the first half of the year Lafarge Republic reported a 76.8 per cent rise in net income to PHP1.36bn as volumes and selling prices increased.

In May the company’s board of directors approved the construction of a new grinding mill at its plant in Teresa, Rizal, the groundbreaking ceremony for which is expected this year. The new milling facility will start producing an additional 850,000t by the first quarter, according to Mr Sunico. This will add to the company’s existing production capacity of 6Mta.

Earlier this week, the company inaugurated its refuse derived fuel facility at its Teresa plant. It also has RDF facilities in Norzagaray, Bulacan; Taysan, Batangas; and Danao City, Cebu. Aside from the RDF facility, the Teresa plant also features a waste heat recovery system which has enabled a 12,000tpa reduction in emission and made the plant 30 per cent less reliant on the Luzon energy grid.

Published under Cement News