Holcim to reopen plant in Batangas
Holcim Philippines is reopening its grinding plant in Mabini, Batangas next year looking at the continued strong demand for cement in the country.
In a disclosure to the stock exchange, Holcim said it is optimistic that demand for cement will continue to flourish, especially with the government's infrastructure projects and boom in housing.The company will spend around P400 million to rehabilitate the Mabini plant, which will boost its capacity by up to 22.5 million cement bags a year. The Mabini plant, which was acquired in 2003, will be the company's second facility in Batangas, after its terminal in Calaca, Batangas was reactivated last year.
In the first quarter of 2012, Holcim Philippines' sales grew nearly 20% compared to the previous year, due to steady stream of private and public construction projects. Net sales in the first quarter stood at P6.6 billion, from P5.7 billion during the same period in 2011.Volume may be growing, but the company's profits have been eroded by high production costs, especially electricity and coal.
"Prices are still below what they were in 2010, which puts us in a difficult situation as we are faced with increased cost of inputs, particularly electricity and coal," he said.