By Kris Crismundo/PNA
MANILA — One of the country’s largest cement manufacturers, Republic Cement, welcomed the Department of Trade and Industry’s (DTI) decision to impose an PHP8.40-per-bag provisional safeguard duty on imported cement as a measure to protect the local industry.
Republic Cement President Nabil Francis told reporters Wednesday that the safeguard measure on imported cement will help the local industry recover this year.
“The DTI has taken a very positive step. It’s a good measure that somehow is going to help the industry to recover, and this will also foster further investment in the industry,” Francis said.
To recall, the DTI initiated its own investigation on imported cement as it found out that inward shipments of this product surged in the past years. Its probe led to its decision to slap imported cement with safeguard measures from duty-free shipment of this product. [READ: DTI slaps P8.40 per bag provisional duty on imported cement http://www.pna.gov.ph/articles/1059278]
Francis said the local industry is optimistic this year following DTI’s decision.
“2018 was a year of transition. We’ve seen a good market, still with its own difficulties. Now in the wake of very positive and encouraging step taken by DTI, we are a bit optimistic this year,” the Republic Cement executive said.
Contrary to the statement of importers that there might be a shortage of cement supply in the country since the cost will be higher for shipping cement here, Francis said manufacturers have enough supply to meet the demand of the domestic market.
“Local players still have enough capacity. Lot of investments is ongoing. Many people have announced increasing its output. Many of the new equipment will be commissioned no later in this year,” he added.
For this year, Francis said Republic Cement will boost its capacity with its two new finish mills.
Although the executive did not disclose the company’s investment for the new facilities, he said average cost to put up a finish mill with a capacity of one million metric tons (MT) annually is about USD20 million.
He said Republic Cement’s new finish mills will have a combined output of two million MT or about 50 million bags.
“At the end of this year, the total capacity will cover around nine million (metric tons),” he said.
