Eagle Cement sees PHP350m in savings

Eagle Cement sees PHP350m in savings
22 June 2018

Eagle Cement Corp expects to generate some PHP530m in savings from the three-year income tax holiday granted by the government for the company’s recently-completed third production line in Bulacan. The savings will be generated over a three-year period between 2018-20.

"That doesn't count yet other incentives that we get in terms of tax savings from the importation of certain equipment, bringing in the required equipment machineries from abroad. So we also get some kind of savings on cost of duties for that," Eagle chief financial officer Monica Ang said in a briefing after the company's stockholders meeting.

The additional incentives, Ang explained, had partly offset the impact of peso depreciation, which in turn had made importation of capital goods more expensive for Philippine companies.

The third production line, which has a capacity of 2Mta, entered service in April. The line’s utilisation rate will gradually increase to full capacity, which is expected to be achieved in the 3Q18, according to Eagle President Paul Ang. The additional capacity will start to impact on the company’s financial performance in the 2Q18.

"The opening of our third production line will allow us to better serve new markets in Regions IV and V. This will give our company an increased role in the country's infrastructure push, as we help build the future of Filipino communities," he explained.

Published under Cement News

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