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« Phivolcs says text messa...Delays, technical glitch... »

Holcim allots P2 B for plant upgrade

Post n°36 pubblicato il 20 Novembre 2009 da TRINKLED
 

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By JUDITH BALEA Holcim Philippines, one of the country's leading cement producers, is investing about P2 billion this year to rehabilitate its plants and expand production capacity to meet an anticipated increase in domestic demand.
"We are upgrading and refurbishing our plant equipment. We are also accelerating capacity improvement," said company chief operating officer Ian Thackwray.
Thackwray said the cement industry is seen to grow from 6-10 percent in terms of volume this year, depending on the government's infrastructure spending.
Increase in price of coal
While Holcim expects to achieve the same growth, he said the company remains cautious due to high fuel costs.
"Prices of coal coming from Indonesia have increased 32 percent from January to April this year to about $111.86 per metric ton," he said.
The increase in the price of coal, along with a flat growth in demand, dragged down Holcim's first-quarter net income by 8 percent to P436.37 million from P475.92 million in the same quarter last year.
Net sales during the January to March period was slightly higher at P4.3 billion, compared to P4.1 billion in 2007.
"One of the main reasons for the lower income was the Easter holiday, which fell on March rather than April. That translated to four days of no construction. Government infrastructure spending in the early part of the year was also weak," Thackwray noted.
Cement prices to go up
He said the company is looking to raise cement prices again this year to mitigate soaring production costs.
"Last month, we increased prices further to over P130 per bag and we continue to look for improvement in pricing because of high coal prices."
Holcim Philippines is a member of the Holcim Group, one of the world's leading suppliers of cement and aggregates that has operations in more than 70 countries worldwide.
The local company has cement plants in La Union, Bulacan, Davao and Misamis Oriental, with a combined capacity of 9.9 million tons of cement per year.

 
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