Local cement manufacturers said they have enough capacity to support local demand for cement in the wake of the planned imposition by the Department of Trade and Industry (DTI) of provisional safeguard measures on imported cement.
In a statement on Monday, the Cement Manufacturers Association of the Philippines, Inc. (CeMAP) said it concurred with the results of the preliminary safeguard investigation of the DTI which found prima facie evidence to motu proprio determine whether or not imported cement is causing serious damage to the industry.
“There is clear and sufficient evidence of the recent, sudden, sharp and significant increase in imports which is causing serious injury to the domestic industry,” CeMAP said in the statement.
The group cited publicly available data from the Bureau of Customs which said that in 2024 cement imports reached an all-time high of 7.6 million tons, 10 percent from 6.91 million tons higher than 2023.
“Through the imposition of safeguard measures, the local manufacturers are supported by the government, also its employees, both existing and potential, and the overall economy of the Philippines,” CeMAP added.
The group said the domestic industry has sufficient capacity to supply domestic demand with an annual volume of at least 50 million tons.
However, with cement demand in 2024 estimated at 35 million tons and imports at 7.6 million tons, the effective domestic capacity utilization is only 55 percent, the group added.
“As a capital and energy-intensive industry, low utilization significantly impacts the industry’s financial health,” it said.
CeMAP said advocates fair competition in the domestic cement industry but believes the continuing rise in the volume of imported cement, particularly from Vietnam, puts at risk “our country’s economic recovery as it undermines the domestic cement manufacturing industry’s capability to contribute to and catalyze inclusive growth through job creation, tax revenue generation, investments, utilization of local natural resource and overall economic revenue and growth.”
