Cement manufacturers set P74B investments till ’25

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Local cement manufacturers have committed to pursue until 2025 P74-billion worth of investments previously deferred due to the pandemic.

In a report to Trade Secretary Ramon Lopez, the Tariff Commission (TC) said it has found the cement industry to be compliant with the adjustment plan it submitted in relation to the imposition of safeguard duties on imports beginning 2019.

The TC found the safeguard measures have helped the industry cushion the adverse economic effects of the new coronavirus disease 2019 and have contributed to market competitiveness.

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The TC said the reductions in sales, production and capacity utilization were less severe had the adjustment measures were not implemented.

“The Secretary may opt to (either) maintain the imposition of safeguard measures as previously determined or consider modification… taking account efforts undertaken by the domestic industry, changed economic/financial circumstances, competitive discipline and the public interest,” the report posted on the Commisson’s wesite said.

Imported cement is slapped P9.80 per bag in safeguard duty beginning October 2020, the second year of the imposition.

The Commission said the industry showed positive adjustment to imports.

“The domestic cement industry is improving the efficiency levels and hence increasing its ability to compete successfully with imports when a safeguard measure is no longer in place,” the report added.

The Commission said the imposition of safeguard duty starting February 2019 helped the domestic industry retain its dominance with a share of 79 percent as of the first half of 2020.

The commission said while some measures were deferred up to 2025 due to the pandemic, these projects will be pursued to strengthen the industry’s competitiveness vis-a-vis imports.

In its original adjustment plan, member- companies of the Cement Manufacturers Association of the Philippines have committed to pursue 20 projects that would expand their plant capacities and cut costs.

Of these, 12 projects valued at P12 billion were completed in 2019 and 2020.

But eight were either cancelled or replaced or deferred for completion between this year and 2025 due to disruptions brought by the COVID-19.

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