The Oxford Business Group has published an Economic Update entitled ‘Philippines cement sector in shake-up’, in which it suggests the planned merger of Lafarge and Holcim could shake-up the local industry. Local subsidiaries Lafarge Republic, Inc. and Holcim Philippines Inc. have each issued statements saying they are exploring the combination of their businesses, though some assets will be sold. Indeed, the proposed sale of three Lafarge plants could be an opportunity for new players to enter the market, or for existing operators to add capacity.
The report goes on to outline the booming cement industry in the Philippines, which saw sales hit 5.2 million t in 1Q14, up 8.6% y/y. Demand is likely to continue to grow, as the government maintains its investment in public works and private investment also increases.
‘With demand forecast to hit 27 million tonnes by 2017, producers are already rolling up their sleeves to expand plant capacity,’ the report states. ‘A number of firms have already announced new investments, and total capacity is set to reach more than 38 million tonnes by 2017 with Cemex Philippines Group of Companies, Eagle Cement, Northern Cement Corp., Pacific Cement Corp., San Miguel Corp. and Taiheiyo Cement Philippines all looking to expand.’
Abridged from source by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/08082014/new-report-examines-impact-lafarge-holcim-merger-263/