In the Philippines, second quarter cement sales grew 3.2% to 5.519 million t through the April – June period, according to data reported by the Cement Manufacturers Association of the Philippines via various local media sources. Member companies sold 5.349 million t in the January – March quarter, bringing the first half total to 10.718 million t, 6% up on the same period last year.
Higher sales are attributed to an increased budget for the Department of Public Works and Highways. The infrastructure budget was increased by 37% to P404.3 billion to support reconstruction in regions affected by the natural disasters that hit the Philippines late last year.
Last year’s total cement sales reached 19.4 million t, up from 18.4 million t in 2012.
The Oxford Business Group published a report earlier this month describing how a public-private partnership scheme is giving a push to construction projects in the country. In June, the Philippines Statistics Authority (PSA) announced that the total number of approved building permits has grown by a fifth during 1Q14, while the number of construction permits issued for additions, alterations and repairs grew 42% y/y following Typhoon Haiyan. The report also notes the shortage of cement in the Iloilo province, as reported last month.
Interesting to note that in the recent announcement from Holcim and Lafarge of planned divestments to pave the way for their merger, the companies indicated that they are looking into ways to combine their businesses alongside the planned sale of three Lafarge plants. Clearly, the Philippines remains an interesting market.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/24072014/2q14-cement-sales-up-in-the-philippines-166/