SMC preparing to double capacity of P10-B Davao cement plant
Soon after commissioning a P10-billion cement manufacturing plant in Davao, conglomerate San Miguel Corp. (SMC) has started planning to double the capacity of the facility, citing the need to reduce the country’s reliance on imported cement.
The plant, which can produce up to 2 million metric tons of cement per year or some 50 million bags, is designed with a provision to readily expand capacity to 100 million bags.
In a press statement on Thursday, SMC president and CEO Ramon S. Ang said the group’s cement unit, Southern Concrete Industries Corp., was planning to execute such expansion.
“Our focus will be to immediately serve the needs of the Mindanao region, to fill in supply gaps, especially the demand for local cement. Right now, there is heavy reliance on imported cement. But our government’s goal is to lessen our dependence on imports, especially since supply, price, or quality issues directly impact, disrupt, or delay critical infrastructure development. That is why we will look right away at doubling the capacity of the plant,” said Ang.
The Davao plant started commissioning activities in late 2021 and is expected to reach full commercial operations by July 2022. The facility uses the “latest technology and world-leading brands in cement grinding as well as in pollution abatement,” the company said in its statement.
Government support
The Davao unit (previously Oro Cement Industries Corp.) was recently granted fiscal incentives by the Inter-Agency Fiscal Incentives Review Board (FIRB), chaired by Finance Secretary Carlos Dominguez III. The FIRB acknowledged benefits from the projects, such as “stimulating forward linkages, promoting the use of energy-efficient equipment that can lead to transfer of knowledge and improved productivity.”
“We are grateful for the support of government and our communities in Darong, Davao del Sur, who immediately saw the many benefits and advantages of this modern cement facility. This plant was built to support infrastructure development and investments in Mindanao—to help sustain economic development, growth of local industries, and the creation of jobs. We will make sure we will hit the ground running when we start operations by July this year,” Ang said.
