Cebu cement firm hikes production

CEBU CITY—Encouraged by the bright prospects in the construction sector, a cement company in Cebu is set to increase production in the coming months.

Satoshi Asami, president and chief executive officer of Taiheiyo Cement Philippines Inc. (TCPI), told the Inquirer that the company has been implementing measures to raise production so it can meet the rising demand.

To improve productivity, TCPI will maximize the capacity of its existing mills, as well as its cement packing system and jetty facility, Asami said.

In 2011, the company produced 800,000 tons of cement products. This year, the company plans to expand production to 1.3 million tons—a 60-percent increase over that of last year, he explained.

The increase in production will be enough to serve the demands of the company’s customers in the next five years, Asami said, adding that TCPI is prepared to increase output to 1.5 million tons if need be.

TCPI is based in San Fernando, about 23 kilometers from Cebu City. The company supplies cement products to Cebu, the rest of the Visayas and parts of Mindanao.

The company has cornered 50 percent of the cement market in Cebu, and serves up to 40 of the Visayas market.

According to Asami, the domestic economy continues to be buoyed by the dollar remittances from Filipinos abroad and the thriving business process outsourcing (BPO) sector.

He noted the changing makeup of overseas Filipino workers (OFWs), with more being hired for sophisticated, high-paying jobs.

Also, the Philippines continues to be an attractive location for BPO companies, partly due to the English proficiency of Filipino workers, Asami said.

OFW demand for their own houses or the renovation of existing ones will continue, while the need for more office space for BPO operations is expected to grow further, he said.

Rising investments in residences, as well as private and public infrastructure projects, will greatly boost the cement sector, the executive said.

Asami cited the various construction projects in the province, including those at the Cebu Business Park where TCPI holds office.

“A year ago, I had a clear view of the area. But now, all I can see are the cranes,” he said.

At the Cebu Business Park alone, there are several residential and commercial buildings being put up, such as the Solinea, a 2.6-hectare multi-tower development. Other major real estate projects include the 30-hectare SM Seaside City of SM Prime Holdings Inc. and the 50-hectare Citta di Mare (City by the Sea) of Filinvest Land Inc., both located at the South Road Properties—the reclaimed area owned by the Cebu City government.

Asami also revealed that the Philippines has become a more attractive location for many manufacturing companies, particularly Japanese firms that are looking at alternative sites for their facilities.

These companies, some of which have facilities in other countries such as China and Thailand, are now considering the relocation of their facilities to the Philippines, he said.

The Philippine government, Asami said, is expected to finance more infrastructure projects such as the construction and improvement of roads, ports and airports, among others, to make the Philippines more attractive to investors.

All these developments will help drive up sales in the cement sector, which is projected to grow by up to 20 percent by the end of the year, he said.

In 2011, the sales volume of the cement sector reached 15.5 million tons.

In the Philippines, Asami said, per-capita consumption of cement stands at only 150 kilogram compared with the 200- to 300-kilo consumption observed in other Asian countries.

This only shows that, for the cement sector, there is plenty of room to grow in the Philippines, he said.