Cement makers posted 7.1% sales growth in first 9 months

Cement manufacturers posted a 7.1-percent growth in sales to 14.9 million metric tons in the first nine months of this year, from 13.947 million MT, according to data provided by the Cement Manufacturers Association of the Philippines (Cemap).

The group attributed the strong sales performance to the steady growth in construction activities in the country during the period. In the third quarter alone, cement sales grew by 9.2 percent to 4.8 million MT this year from 4.4 million MT in the same period in 2012. Cement sales in the first quarter reached 4.79 million MT while that in the second quarter hit 5.35 million MT.

According to Cemap president Ernesto Ordoñez, the main growth drivers for the cement industry during the period were the increase in government spending, especially for infrastructure by the Department of Public Works and Highways; improving business confidence, and a generally strong economy with good growth prospects.

Local cement manufacturers earlier said they were poised to continue their strong performance this year.

Don H. Lee, president of Lafarge Cement Services Philippines Inc. (LCSPI), earlier noted that local cement players had adequate supplies to serve growth in demand. The industry, he said, could supply 20 to 21 million tons of cement products.

Total cement sales last year reached 18.36 million tons.

Because of the strong demand, the capacity utilization of the cement plants is also seen exceeding 80 percent this year, Ordoñez said.

The industry’s growth is expected to continue despite the challenges that cement manufacturers continue to face, such as the high costs of power and transport. Electricity, alone, accounts for 40 percent to 60 percent of a cement company’s total operating costs, Lee said.