Local cement manufacturers and other stakeholders have raised concerns over surging imports that could threaten the industry’s viability, despite the adjustments being undertaken by industry players.
The president of the Cement Manufacturers of the Philippines, 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.
During the commission’s public hearing on Monday, the CeMAP head pointed out a current production overcapacity, made worse by imports from China, Vietnam, Indonesia, and Thailand.
Cement imports accounted for 46 percent of the domestic market in 2024, up from just 25 percent in 2019, Dizon said.
This requires the imposition of a safeguard measure that is necessary to ensure the long-term viability of this strategic industry, CEMAP Executive Director Renato Baja said in a separate statement.
Citing a Staff Report of the Tariff Commission, Baja said cement imports grew at a cumulative rate of 8 percent during the period of investigation, confirming a significant and sustained increase in import volumes.
At the hearing, CeMAP officers and members emphasized the ongoing decline in sales volume, revenue, operating profit, and employment resulting from the surge in imports.
He said that the local industry has more than enough capacity to meet national demand. Total installed capacity now stands at 51 million metric tons, following new capacity additions by both CeMAP and non-CeMAP members over the past two years.
Notably, Solid Cement Corp. invested in an additional 1.5 million metric tons of capacity. Meanwhile, Taiheiyo Cement with its new line increased its capacity by 3 million metric tons per annum.
Despite these expansions, capacity utilization currently stands at only 53 percent, indicating significant underutilization of local production capabilities. The influx of imports allegedly causes this low capacity utilization,” the CeMAP statement said.
During the commission’s public hearing on Monday, the CeMAP head revealed a production overcapacity, made worse by imports from China, Vietnam, Indonesia, and Thailand.
Dizon said the demand from China, a major importer of cement in the region, is subdued, which would also contribute to the excess supply in the region.
Dizon added that the US imposition of a 46 percent tariff on Vietnam will also limit that Asian country’s cement export, rendering the Philippines vulnerable to more imports.
Citing a global cement industry report released in May 2025, Dizon stated that the Philippines became the third-largest importer of cement in 2024.
Baja said local manufacturers experienced a 42 percent profit loss in 2024 and a 49 percent reduction in employment.
Dizon said production in 2024 was estimated at 51 million tons, against a demand of 35 million tons.
The majority of the adjustment plans, including additional capacity investments, were completed, and several billion dollars were poured into the industry. However, due to COVID-19, it made it difficult for the companies to continue with the remaining adjustment plans,” he added.
Dizon said cement production is energy-intensive, and substantially all cement companies have power contracts with exposure to international coal prices.
”The Philippines’ industry is also not subsidized and has one of the highest power costs in the region. We are 2.6 times more expensive than Vietnam, where the power distributor is state-owned,” Dizon said.
In Vietnam, the total installed capacity is 123 million tons, compared to domestic demand of only 65 million tons, and capacity expansion is ongoing, he added.
The Indonesian production capacity is at 120 million tons, whereas demand is only 65 million tons. In Thailand, capacity stands at 65 million tons, against a demand of only 30 million tons, Dizon added.
Sought for comment, Trade Secretary Cristina Roque said she will ensure the viability of the cement industry due to its significant impact on the downstream sectors, which also contribute to the country’s growth and employment generation.
The Tariff Commission’s hearing is part of the formal investigation into the merits of imposing a definitive safeguard duty on the importation of certain cement products from various countries.
The DTI, through Department Administrative Order No. 25-01, imposed provisional safeguard duties for 200 days, effective as of last February. The additional duty amounted to P400 per metric ton, or P16 per 40-kilogram bag, in the form of a cash bond on imports of ordinary Portland cement and blended cement.
