Holcim Philippines is investing up to $40 million to expand its production capacity from eight million tonnes to 10 million by next year.
Holcim Philippines president Eduardo A Sahagun said the company was gearing up to improve its sites in Calaca and Mabini in Batangas; and in Norzagaray in Bulacan.
Sahagun said the newly acquired Star terminal of Lafarge Republic Inc. can also enable Holcim to increase its production capacity.
Last week, Holcim Philippines closed a deal to buy Lafarge Republic terminal in Manila and aggregates business in Rizal as part of the global merger of their parent firms Holcim and Lafarge.
“We are reviving a lot of projects. Our Calaca plant is easily adjustable to additional volume as well as the Mabini plant and the Star terminal. The Star terminal could double our capacity (Cement) demand is growing, we have no option but to raise our supply,” Sahagun said.
He sees surging market demand on account of the public-private partnership projects and as more infrastructure major players in the country announced expansion plans.
“The market prospects remain bright as construction activity is expected to continue,” Sahagun said, attributing the growth to higher private construction activities and accelerated government infrastructure spending.
Holcim’s sales surged by 9.7 percent to P9.4 billion in the second quarter of 2015 as its plants delivered production records. Its net income improved by 1.6 percent in the second quarter to P1.5 billion due to higher volume and prices.
Holcim’s first half profits reached P3 billion, slightly lower than last year, due to the early implementation of plant maintenance activities and higher use of more expensive imported clinker in the first quarter.
“Our investment in facility upgrades allows our plants to run longer before scheduled maintenance activities. This will pay off in the current market environment as we are able to meet the demands of customers,” Sahagun said.