Taiheiyo Cement Corporation of Japan is investing 10 billion yen, approximately P3.9 billion, for the construction of a new cement distribution terminal in Batangas to supply 700,000 tons of cement annually to Luzon, the largest cement market in the country.
The Department of Trade and Industry said the Japanese cement company already disclosed last Aug. 8 the investment to be implemented by its local subsidiary Taiheiyo Cement Philippines Inc. (TCPI).
In the Philippines, TCPI is headquartered in Cebu and is targeting an annual sales volume of five million tons and a sales share of 10 percent by 2030.
The expansion in Calaca, Batangas include the construction of a new cement distribution terminal with total investment of approximately JPY 10 billion. The terminal will supply 700,000 tons of cement annually to Luzon, the largest cement consumption area in the Philippines.
Taiheiyo Cement was founded in Japan in 1881 and now has consolidated net sales of JPY 809.5 billion and 1,841 employees.
The company was among the Japanese firms that signed business agreements during President R. Marcos Jr.’s official visit to Tokyo in February this year. In the agreement, Taiheiyo expressed its intention to expand operations in the Philippines, the DTI said.
Aside from the Batangas project, DTI said that TCPI also conveyed its interest to upgrade its main facility in San Fernando, Cebu, via a Kiln Renewal Plant designed to increase current production capacity to three million tons per year while also reducing CO2 emissions intensity from energy use by 10 percent.
The company is also planning the reinforcement of the port area of their San Fernando plant. Taiheiyo’s investments under the LOI are expected to generate 2,000 new jobs.
Special Trade Representative (STR) Dita Angara-Mathay, commercial counselor of the Philippine Trade and Investment Center (PTIC) in Tokyo, stated that Taiheiyo Cement “has a good track record in keeping their avowed commitment to pour resources, capital, advanced technologies, and materials that support the infrastructure development programs of the country.
“The company’s latest announcement materializes their plans to expand to Luzon from their long-time base in the Visayan region,” she added.
DTI Secretary Alfredo E. Pascual said Taiheiyo’s cement business strategy in the country is also in line with the goals of the “Build, Better, More” infrastructure program wherein public infrastructure spending is targeted to account for six percent of GDP.
“The DTI will continue to work towards a vibrant and globally competitive construction industry that is committed to building with integrity,” he said.
The Philippine Construction Industry Roadmap envisions P130 trillion worth of business to be generated between 2020 and 2030 through the revitalization of the DTI Construction Industry Authority of the Philippines and the implementation of its 7+1 Action Plans developed with industry stakeholders through constant dialogue and engagement.
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The article was originally published inManila Bulletin and written by Bernie Cahiles-Magkilat.
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