The head of Holcim Philippines Inc. expects the local cement industry to sustain its bullish run this year with sales volume seen growing by as much as 8 to 10 percent.
This was on the back of increased infrastructure spending by the government and the continuing construction activities of the private sector, said Holcim chief executive officer Eduardo A. Sahagun.
Last year, local cement manufacturers sold 24.36 million metric tons, 14.3 percent higher than year-ago level. The growth was attributed to higher public spending and the continued confidence of the private sector in the economy.
In an interview with the Inquirer, Sahagun said that for this year alone, the public works budget was about P800 billion, equivalent to about 5 percent of the country’s gross domestic domestic product. Also, the private sector has been actively pursuing new developments not only in Metro Manila but also in other key growth areas in the country, including Cebu, Davao, Cagayan de Oro, Iloilo, and Bacolod. Such projects included housing developments and commercial structures.
He said the private sector usually accounted for some 60 percent of the total cement sales, while the balance is taken up by the government.
Also boosting this optimism was the presidential candidates’ expression of support for higher infrastructure spending.
“So hopefully, whoever sits in Malacañang (under the next administration) will continue the same kind of governance and focus on infrastructure,” Sahagun said.
For Holcim Philippines, however, Sahagun declined to cite projections with the nearing release of the company’s earnings report later this month.
Last year, Holcim Philippines sold more than 200 million bags of cement, up from 186 million bags of 40 kilograms each a year ago. This enabled the company to capture 32 to 34 percent share of the domestic market. At present, Holcim’s cement facilities in the country has about 8 million tons in capacity, equivalent to total production of about 220 million bags a year.