Cement producers warn of dying local industry

The local cement sector is plagued by low capacity utilization, raising concerns over manufacturers’ viability. / INQUIRER FILES

MANILA, Philippines – Only 53 percent of the country’s cement production capacity is currently in use, raising concerns over the long-term sustainability of local manufacturers amid the influx of cheap imported products.

“The oversupply in the Philippines is concerning at around 53 percent utilization,” Reinier Dizon, president of the Cement Manufacturers of the Philippines said during the public hearing of the Tariff Commission on Monday.

The commission has scheduled five days of public hearings, or until Friday, to examine the merits of imposing definitive safeguard measures on imported Portland and blended cement from other countries.

READ: DTI slaps duties on imported cement

According to Dizon, the situation is not unique to the Philippines, as many countries face similar challenges.

However, he highlighted the importance of taking initiative domestically by maximizing the country’s own capacity to improve the situation.

In late February, the Department of Trade and Industry (DTI) imposed provisional safeguard measures on these two types of imported cement, requiring importers to pay a cash bond of P400 per metric ton for 200 days.

This decision follows an investigation into imported cement covering the period from 2019 to June 2024.

Based on evidence, a DTI preliminary investigation determined that the rise in imports caused serious injury to the local industry, leading to its significant decline.

Even with the safeguard measure, however, more than 190 foreign sources and countries were exempted from posting the cash bond.

Vietnam, which accounts for approximately 93 percent of the country’s cement imports, and Indonesia, which holds a 5-percent share, were not included in the exemption list.

Meanwhile, China, with a 1-percent share of imports, was exempted.