Cement firm increases production of local plant

HOLCIM Philippines has increased its capacity and production of its local plant as it wants to take advantage of the upsurge of infrastructure development in Mindanao.

Officials of the company announced on Friday its plans to increase production from 1.4 million metric tons per year to 2.2 million metric tons

Holcim on Friday broke ground at its facility in Panacan two major projects that would not only automate the loading of products to and from ships at its dock but also increase its grinding capacity.

Dubbed the Kalayaan project, Holcim and key officials welcomed the beginning of its P1.5 billion investment.

Sapna Sood, Holcim Philippines president and chief executive officer, said that the national capacity of its plants would also be increased in the coming months as the company’s contribution to the government’s influx of infrastructure projects.

“The decision to bring this program in Davao reflects the government’s efforts to make resources available for developing Mindanao,” Sood said.

Mindanao, she said, “holds a special place in the heart of Holcim,” as it is home to two of its plants and hundreds of its people.

Holcim also runs a plant in Lugait, Misamis Oriental.

“Davao and the rest of the country can expect Holcim to do more to support what is being described as the golden age of infrastructure,” she said.

Meanwhile, Sood said that the company will be revealing its construction solutions, such as those for road development, in the next few months.

“Everyone here in Davao and across Mindanao and across the country can count on us to continuously support and explore better ways to better move the country forward,” she said.

The plant improvements will be spread out in the next two years, Holcim said in a statement.

“We are proud of our many years of partnership in the city’s development and excited to support its sustained growth. This investment is an important part of our commitment for a reliable supply to support the government’s infrastructure drive in the region,” she said.

The Davao expansion is part of Holcim Philippines’s Php2.7 billion investment to raise its nationwide cement production to 12 million metric tons from the present 10 million metric tons.

The increased capacity allows Holcim Philippines to continue supporting the country’s development as the government ramps up infrastructure spending up to 7% of GDP by 2022.

The government has identified upgrading infrastructure in Mindanao as a key priority and plans to steadily increase allocations for development works in the region. This year, the government allocated around Php476 billion for the Department of Public Works and Highways (DPWH) of which almost 40% will be spent for road building in Mindanao.

Davao City is also set to receive increased public funding for infrastructure, with recent reports saying close to P50 billion will be spent for road projects to improve the traffic flow of the growing city and the overall logistics environment.

Davao is also included in the planned Mindanao Railway project, with a 105-kilometer segment that opens up more economic opportunities for Davao and its people.

Posted in Business