Holcim growth target shaky as Davao operations also halted
The country’s leading cement maker Holcim Philippines has suspended the operation of its manufacturing plant in Davao as the city goes on lockdown until April 19 to contain the COVID-19 pandemic.
With the suspension of its facilities in the whole of Luzon and in Davao City, Holcim said it could miss its full-year goals.
The halt to the operations is in compliance with Mayor Sara Duterte’s order to impose an enhanced community quarantine in Davao starting April 4.
Luzon, on the other hand, is now on the fourth week of its monthlong isolation ending on April 12. Government officials have sounded off the possibility that this could be extended.“While our Lugait Plant in Misamis Oriential will continue to operate and serve the requirements of our business partners and customers in Northern Mindanao and the Visayas, the suspension of our operations of our Luzon and Davao plants will result in the company’s inability to meet our production and sales targets, which may have material financial impact to the business,” Holcim said in its disclosure.“Cost control measures are currently being implemented to mitigate the impact of these developments to our business,” it added.
Holcim said it would continue to follow the government’s direction in addressing the current public health challenge.—Doris Dumlao-Abadilla INQ
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