Claims imports cause no impairment to local industry
CEMENT importers on Wednesday opposed the imposition of safeguard duties on imported cement, saying the imports have not caused significant impairment to the overall domestic industry as local manufacturers continue to account for at least 80 percent of production and sales.
In an interview at the end of the Tariff Commission hearing on the imposition of a definitive safeguard measure on cement imports, Philcement Corp. President and Chief Executive Officer Eduardo Sahagun belied the claims of the multinational-dominant Cement Manufacturers Association of the Philippines (CeMAP) that imports impair their operations.
Sahagun told Malaya Business Insight that the alleged negative impact of imports claimed by CeMAP members can be attributed to the inefficiencies of their plants, some of them aged 40 years or more, and the payment of royalties to their principals abroad that run to billions of pesos.
In a presentation on Wednesday at the Tariff Commission, Monica Mamites, Philcement vice president for business development, said domestic production continued to enjoy dominance at 81 percent of total supply between the period of investigation (POI) of the safeguard measure of 2019 and 2024, citing the staff report of the Commission dated June 2, 2025.
Mamites said domestic production, based on the staff report, accounted for 80.51 percent of the total market as of 2021, which is the mid-point of the POI.
Imports only accounted for 19.4 percent in 2021, the report added.
Mamites said in fact, there are domestic players that have shown resilience, competitiveness, and growth over the POI, particularly those that are not members of the Cement Manufacturers Association of the Philippines (CeMAP).
Mamites cited annual financial statements and reports filed with the Securities and Exchange Commission that showed revenues of companies that are non-CeMAP members grew on average by 7 percent annually during POI.
In the presentation, Philcement said while operating income during the POI generally declined, non-CeMAP members had an average annual growth of 0.5 percent and a compounded annual growth rate of -6 percent.
“This indicates better cost control,” Mamites said.
She said new domestic producers are, in fact, benefiting from their investments, indicative of a healthy market competition.
She cited Century Peak located in Cebu, which is a stronghold of Apo and Taiheiyo. The company registered revenues of P2.7 billion in 2024, up from P1.5 billion in 2023.
Mamites also cited Abbah King, which logged P324 million in revenue and achieved P29 million in net income in its first reported year. The company started commercial operation in July 2024.
On Monday, the president of the CeMAP, Reinier Dizon, presented to the Tariff Commission’s public hearing the industry position on this issue: Impose a definitive safeguard duty on imported cement beyond the provisional 200 days from February 2025.
The CeMAP head pointed out a current production overcapacity, made worse by imports from China, Vietnam, Indonesia, and Thailand.
Related story: https://malaya.com.ph/business/corporate/imports-threaten-cement-industry-cemap-bats-for-definitive-duty/
