Aboitiz expands cement output to meet robust demand
Aboitiz Equity Ventures Inc. is investing as much $300 million to boost its cement production capacity to take advantage of the government’s massive infrastructure development program.
The Duterte administration is ramping up infrastructure spending to P8 trillion to build new roads, bridges,railways, and to redevelop airports.
In a briefing, AEV officials said they were targeting to increase Republic Cement’s capacity to around one million tons a year in the next two to three years.
Officials said the expansion is aimed at meeting demand for cement which is expected to increase as the government accelerates infrastructure development to fill the existing infrastructure gap.
Cement demand in the Philippines has grown by compounded 4.8 percent from 2000 to 2015 to 24.4 million metric tons.
Republic Cement is also looking at building production facilities in Visayas and Mindanao as the government is keen on spreading development nationwide.
It currently has five integrated plants, four of which are located in Luzon. It also has a cement plant in Iligan City and a grinding station in Danao City in Cebu.