Local manufacturers are poised to continue their strong performance this year on account of the boom in the real estate and construction industries, according to an industry official.
On the sidelines of the 2nd Vehicle and Traffic Safety Conference Friday, Don H. Lee, president of Lafarge Cement Services Philippines Inc. (LCSPI) noted that local cement players have adequate supplies to serve the growth, as it can supply some 20 to 21 million tons of cement products. Sales last year reached 18.5 million tons.
Because of the demand, the capacity utilization in cement plants is likewise expected to reach more than 80 percent this year, added Ernesto M. Ordoñez, president of Cement Manufacturers Association of the Philippines (CeMAP).
The industry’s growth is expected to continue despite the challenges that cement manufacturers continue to face, namely the high costs of power and transport. Electricity alone account for about 40 percent to 60 percent of a cement company’s total operating costs, according to Lee.
“We have to manage or reduce other costs instead,” Lee added.
Meanwhile, Cemap yesterday held the Vehicle and Traffic Safety Conference to underscore the group’s passionate safety advocacy.
“Cement haulers and drivers traverse the country’s city and countryside roads, highways and expressways everyday. These highly mobile transport equipment and people on the road have a significant impact on our economy. That’s why transport safety is high on our agenda,” Ordoñez said.
All cement firms represented in CeMAP, as well as haulers and drivers, have signed the shared Code of Accountability, assuring both customers and the larger public that “responsible and safe driving shall henceforth be the general rule on the road—not the exception,” Ordoñez pointed out. Amy R. Remo