The Department of Public Works and Highways said in July that major infrastructure projects

are on track and the government’s “Build, Build, Build” program will play a key role in
growing the economy amid the pandemic.

Holcim Philippines is ready to support partners in this effort. Quick actions to keep people safe
against COVID-19 in its operations enabled the company to quickly reopen all its manufacturing
facilities and ramp up operations in Luzon and Davao after the local and national governments
eased quarantines in May. Cost and efficiency initiatives across the business are also continuing
highlighted by the recent completion of maintenance activities in a number of its facilities with
minimal support from third-party contractors.

The company is also ready with commercial innovations to better support and serve partners. Digital
platforms have enabled Holcim Philippines to continue providing seamless service to
customers amid the pandemic. The company’s “Easybuild” platform allows customers to
safely and conveniently place orders, check deliveries, settle transactions and review credit
history with Holcim. Utilization rate has increased to 91% as more customers use
“Easybuild” given its advantages.

On the product side, the company is continuing to work with partners through electronic
consultations to use the right product for the right application focused on its general
purpose cement “Excel” and infrastructure and road cement “Solido.”

Holcim Philippines also plans to make available its 24-hour concrete “SuperFastCrete
(SFCrete)” across the country. Currently used for road works within Metro Manila, “SFCrete”
can help local contractors meet project deadlines despite fewer people onsite due to social
distancing measures.
https://www.holcim.ph/holcim-philippines-reports-resilient-performance

Top officials of building solutions provider Holcim Philippines, Inc. recently met with
Department of Trade and Industry (DTI) Secretary Ramon Lopez to share the company’s
initiatives to better support the government in upgrading the country’s infrastructure through
stable supply of quality cement nationwide.

Holcim Philippines Chairman Tomas Alcantara, President and CEO John Stull and Senior
Vice President for Sales William Sumalinog personally expressed the company’s willingness
to further build up its production capacities in light of the increased cement demand driven
by the government’s massive infrastructure investments. They also assured the DTI
compliance to product standards to ensure highest quality and performance.
"DTI has implemented new initiatives and policies to encourage investments to create more
employment opportunities, and at the same time support the government's plans for progress. I am
happy to hear Holcim’s commitment to implement cement capacity expansion to ensure that
our infrastructure and construction requirements will be well supported and generate
additional employment," Lopez said.

Holcim Philippines is currently implementing projects that will raise its cement capacity
nationwide to 12 million metric tons by 2019 from the current 10 million metric tons. The
Company is studying further investments on additional clinker lines with the construction sector
expected to sustain its strong growth amid the healthy economy.

“The Company recognizes the strong potential of the Philippine market and is committed to continue
being a partner in its progress as seen by our efforts to improve operations and competitiveness,”
said Alcantara.

For his part, Stull noted that the Company has been rolling out new technologies and
approaches that enable local builders to deliver projects within deadlines and budgets. A key
focus is blended cements that are not as energy intensive to produce but deliver superior
results for building.

“Our Company supports the DTI’s drive to maintain the high standards for cement which is critical
especially at this time of high construction activity. We also want to reassure them that Holcim
Philippines can be counted upon to provide the market not just with high-quality cement, but
innovative construction solutions that help the country build better with certainty,” he said.

https://www.holcim.ph/holcim-pledges-steady-cement-supply-innovations-build-build-build

Building solutions provider Holcim Philippines, Inc. assured key government stakeholders of
its commitment to the robust building activity in the country as it shared the expansion of its
La Union cement plant and new technologies for improved local road construction.

On October 26, Holcim Philippines executives toured officials of the Department of Trade and
Industry led by Undersecretary for Consumer Protection Ruth Castelo to its La Union plant and
briefed the DTI delegation on the company’s support for the strong construction activity in Northern
Luzon.

Holcim Philippines Senior Vice President for Sales William Sumalinog and La Union Plant
Manager Erano Santos highlighted the ongoing project to raise the facility’s annual cement
production capacity to 2 million metric tons by the first half of 2019. The company initiated
the project last year to meet the increasing cement demand in the region.

Also on October 18, Holcim Philippines presented its soil stabilization technology in the
4th Research Symposium on Rapid Construction Methods by the Department of Public Works
and Highways’ (DPWH) Bureau of Research Standards (BRS). Eleven other research studies
were presented during the forum on new technologies that can help the government’s “Build,
Build, Build” infrastructure program.

Holcim Philippines Head of Infrastructure John Edward Reyes discussed how soil
stabilization technology can help the DPWH and local contractors build more durable roads
and execute these faster and within budget.

Reyes noted that soil stabilization enables projects to avoid durability issues from having
less than suitable ground as sub grade and delays caused by inclement weather. The
technology can also help address the scarcity of quality aggregates and lessen emissions
from transporting more suitable soil for projects. He cited road projects in Davao in April that
realized cost and time savings after the contractor and Holcim applied soil stabilization
technology.

DPWH BRS Director Reynaldo G. Tagudando said it is important for the government to
explore new methods and technologies that can speed up the implementation of the Build
program given its scale and timelines. He cited the soil stabilization technology as among the
promising innovations that can improve local road building. Tagudando added that the BRS will
further study these technologies and issue a department order allowing their use if these are proven
to deliver their promised benefits.

Holcim Philippines Head of Sales William Sumalinog said: “These dialogues are helpful in updating
government about our programs that support infrastructure development in the country. We will
continue these engagements to reiterate our commitment to contribute more than cement to the
nation’s progress.”

https://www.holcim.ph/holcim-engages-dti-dpwh-support-build-program

Aside from providing reliable cement supply, leading cement maker Holcim Philippines is committed
to continue rolling out innovative building solutions to help the country amid the construction boom
as partners use these materials to better execute their projects.
Holcim Philippines’ latest offering is its high-performance blended cement brand Solido,
which is designed as a better alternative for infrastructure building to the commonly used
ordinary Portland cement. Designed to provide concrete with higher strength and durability
as well as better workability for faster and easier application, Holcim Solido has been
positively accepted by the company’s clients nationwide since its launch in March.

Partners also approve of Holcim Solido for being a more environmentally friendly option
since it is produced with lower emissions. Moreover, the innovative product design of Solido
enables Holcim Philippines to extend its cement volumes and improve its ability to supply
the strong construction activity in the country.

Another Holcim product that is well-received by the market is the Superfast-Crete (SFCrete),
a one-day concrete technology for quick road repairs in highly-urban areas. As of December
2018, SFCrete has been used to re-block several sections of the Epifanio de los Santos
Avenue and other major thoroughfares in Metro Manila. With SFCrete, roads are passable in
24 hours or less thus preventing commuter inconvenience from prolonged closure related to
repairs. The Department of Public Works and Highways (DPWH) approved the use of SFCrete
for road projects in December 2016 under Department Order 235.

Holcim Philippines is also currently working to get DPWH accreditation for government projects to
use its soil stabilization technology which improves the suitability of ground where roads will be built.
The better soil condition can help these projects avoid durability issues and project delays related
with inclement weather, scarcity of quality aggregates and transportation of more suitable soil.

Holcim Philippines Senior Vice President for Sales William Sumalinog said the roll out of these
solutions together with the company’s commitment to provide reliable cement supply reflect of its
intent to continue being a  partner for the country’s progress.

“As a member of the LafargeHolcim Group, Holcim Philippines has access to a wide range of proven
construction solutions to help builders all over the world. We believe that by providing our
expertise to our local builders, we can help them build better, faster, and more durable roads
and structures,” added Sumalinog.

In the coming months, Holcim Philippines will hold a series of engagements with key partners in the
public and private sectors to explain to them the advantages of its building solutions and better
understand how else the company can help them in their projects.

https://www.holcim.ph/holcim-building-solutions-helping-construction-boom-philippines

In 2017 the administration pledged that US$165bn would be spent on infrastructure by the end of
Duterte’s term in 2022. The government’s ‘Build Build Build’ programme is driving construction across
the country. Major projects include a proposed new US$14bn airport for the capital Manila and a
plethora of highways, railways, water projects and public buildings.

Cement demand, production and prices

The strong emphasis on construction has been fantastic news for the country’s cement producers.
Cement sales rose from 24.4Mt in 2015 to 26.0Mt in 2016, according to the Cement Manufacturers
Association of the Philippines (CMAP). While CMAP no longer publishes cement sales figures for the
sector, other sources indicated at the start of 2019 that demand had reached 32Mt/yr, with domestic
suppliers only able to provide 27Mt/yr. The Department for Trade and Industry reports that the
balance has been made up by imports, which increased from just 3558t in 2013 to 3Mt in 2017 and
then 5Mt in 2018.

Following a period during which it was free to import cement into the Philippines, a US$4/t import duty
was implemented in January 2019. This did not appear to have a significant impact on cement imports
during the first quarter of 2019. Indeed, imports rose by 64% during that period to 1.74Mt, according to
the Philippine News Agency.

On September 2019 the DTI introduced a permanent customs duty on imported cement of US$4.81/t.
The Manila Times reports that the measure is subject to annual review and will be in place for three
years, decreasing by US$0.48/t/yr. Philippine law allows for the imposition of such measures where an
appointed advisory body has determined that increased imports ‘threaten to substantially cause injury
to the domestic industry.’ The advisory body in question is the Tariff Commission, which had previously
suggested a levy as high as US$5.68/t.

Trade Secretary Ramon M Lopez said that the government needed to take care to manage imports while
allowing the construction sector to continue to grow. The impact on cement prices has been moderate.
From US$98.6/t in early January 2019, they reached US$108.25/t by September 2019. Vietnamese
producers have been the largest beneficiaries of the price hike, with 75% of the Philippines’ imported
cement originating in Vietnam.

When the levy was announced, the Philippine Competition Commission (PCC) said that it would impact
upon its investigations into an alleged ‘cartel’ of cement producers dating from 2017. PCC Chair Arsenio
Balisacan noted that it was a clear danger to have ‘an ongoing investigation and introducing a policy that
could influence the outcome of that investigation.’
Elsewhere, there have been rumours since at least February 2019 that the DTI would introduce a
maximum price on cement in order to protect local construction firms from high prices. However, this
has not been deemed necessary so far.

Cement plants on the ground

There are 16 active integrated cement plants in the Philippines that share a combined capacity of
33.6Mt/yr, according to research undertaken towards the publication of the Global Cement Directory
2020. The country is also home to three active grinding plants with a total of 2.2Mt/yr. Taken together,
these 19 plants have a headline capacity of 35.8Mt/yr of cement. There are also two closed /
mothballed integrated plants and two under construction, as well as three mooted grinding plants.

Figures 1 & 2 show that the majority of cement production capacity in the Philippines is located in the
most populous areas. This is clearest in the region surrounding the capital Manila. The three most
populous regions, Calabarzon, the National Capital Region (NCR) and Central Luzon, are home to 38.6
million of the Philippines’ 105 million inhabitants, 37% of the population. However, their combined
cement capacities are 20.4Mt/yr, 57% of capacity.

Cement producers background

The past five years have been a time of significant change for the cement sector in the Philippines. Prior
to the announcement of the LafargeHolcim merger, the two dominant players were Holcim Philippines
(85.5% Holcim) with 7.6Mt/yr of capacity, and Lafarge Republic (100% Lafarge), which operated
5.6Mt/yr of capacity. In July 2014 it was proposed that Lafarge Republic and Holcim Philippines would
explore the combination of their businesses other than Lafarge’s Bulacan, Norzagaray and Iligan plants,
which would have to be divested.

These were sold to Ireland’s CRH, which took on the assets of Lafarge Republic Inc., Luzon Continental
Land Corporation and Lafarge Cement Services Philippines, Inc., including assets related to the Bulacan
quarry. LafargeHolcim kept Lafarge Iligan, Inc., Lafarge Republic Aggregates, Inc., Lafarge Mindanao, Inc.,
and certain assets related to the STAR Terminal and the Pinagtulayan islands. On 18 May 2015 it was
announced that Aboitiz Equity Ventures Inc had signed a deal to join CRH as a joint-venture partner.

Top 5 players in 2020

LafargeHolcim: The largest cement producer in the Philippines at the start of 2020 is the Swiss-French
giant LafargeHolcim, which operates 9.9Mt/yr of capacity across four integrated plants (9.1Mt/yr) and
one grinding plant (0.8Mt/yr).
LafargeHolcim added 0.7Mt/yr of capacity to its Davao plant in 2019. The expansion involved the
commissioning of a finish mill and installation of a new pipe for loading cement to the plant’s silos
from its pier, eco-hoppers to improve dust emissions and an overhead crane. Cold commissioning
started in April 2019, while full production began in late June 2019. The company is also upgrading its
3.3Mt/yr Bulacan plant to 5.3Mt/yr, to give a future capacity of 11.9Mt/yr.

Holcim Philippines improved its profit in the third quarter of 2019 by 158% year-on year to US$9.00m
from US$3.48m. Its sales in the quarter fell by 2.7% year-on-year to US$163m from US$167m in 2018.
The company sustained price increases in spite of lower demand causing a fall in volumes. Holcim
Philippines’ sales in the first nine months of 2019 fell by 13% to US$465m from US$536m in the
corresponding period to 30 September 2018. Upgrades to its La Union and Davao cement plants in
previous quarters dragged on nine-month profit, which rose by 7.9% year-on-year to US$36.9m from
US$34.2m in the corresponding period of 2018, but paid dividends in the third quarter, boosted by the
resumption of state infrastructure spending.

Eagle Cement: Eagle Cement (7.7Mt/yr) is the second-largest cement producer in the Philippines. It is
locally-owned and has been making cement since 2010. In 2020 it operates a three line 7.1Mt/yr
integrated plant and 0.6Mt/yr grinding plant.

At the start of 2019 Eagle Cement’s integrated plant was already the country’s largest, with two kiln
lines and 5.1Mt/yr of capacity. In 2019 a third line was added, providing an additional 2.0Mt/yr of
capacity. The producer will shortly add a further 1.5Mt/yr of clinker grinding capacity to the plant to
fully unleash its integrated plant’s capabilities and take its overall capacity to 8.4Mt/yr. It is also
building a 2.0Mt/yr plant in Cebu.

Eagle Cement continued its positive earnings momentum in the first nine months of 2019, with a 35%
year-on-year increase in net income to US$91.9m. Its sales for the period were US$299m, a year-on-
year rise of 19%.

CRH-Aboitiz: The third largest producer and second multinational by installed capacity in the
Philippines is CRH-Aboitiz, via the subsidiary Republic Cement (6.9Mt/yr). Republic Cement is the third
largest operator overall. It runs five integrated cement plants (6.1Mt/yr) and one grinding plant
(0.8Mt/yr).

CRH’s global sales revenue grew by 4% on a like-for-like basis to Euro21.8bn in the first nine months of
2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 7% to
Euro3.2bn. The group reported lower sales in the Philippines, which it attributed to a general
slowdown in infrastructure spending over the nine month period as a whole.

Cemex: The Filipino subsidiary of Mexican cement major Cemex is the fourth-largest cement producer
in the country and third-largest multinational via two subsidiaries: APO Cement and Solid Cement. It
entered the market in 1997 and today operates two integrated plants (6.2Mt/yr).

Cemex Philippines ordered an MVR type mill for cement raw material grinding from Germany’s Gebr.
Pfeiffer for its Solid Cement plant in Antipolo in October 2019. The order also included an MPS mill to
grind coal. The order was received through a Chinese general contractor but no value or timescale was
disclosed.

Cemex Philippines recorded a profit of US$17.1m in the nine months to 30 September 2019, compared
to a loss of US$13.0m in the corresponding period of 2018. The company attributed the turn-around to
steadily growing sales, up by 1.7% year-on-year to US$360m from US$350m, foreign exchange gains and
lower income tax expenses, in spite of falling domestic volumes.

Taiheiyo Cement: The Japanese cement producer Taiheiyo Cement operates a 2.3Mt/yr integrated
cement plant in Cebu, which is currently undergoing expansion to 5.2Mt/yr.

Smaller players

The top five cement producers in the Philippines share 33.0Mt/yr (92%) of the country’s capacity. A
further three share the remaining 2.8Mt/yr (8%) of capacity across three integrated plants.

Northern Cement Corporation (NCC) was established in 1967. NCC’s integrated plant in Pangasinan was
upgraded extensively in the 1990s to a capacity of 1.2Mt/yr. NCC is reported to be in the process of
building a second plant, a 2.0Mt/yr facility in Bulacan. The company is 35% owned by First Stronghold
Cement.

Elsewhere, Goodfound Cement operates a 1.0Mt/yr integrated cement plant in Camalig, Albay, while
Mabuhay Filcement operates a 0.6Mt/yr integrated plant in South Pobacion, Cebu.

Deals to watch in 2020

The multinational left the entire South East Asian market in a major readjustment of its global footprint
in 2019. The company sold a total of 34Mt/yr of cement capacity as it left the region, cutting its capacity
by around 12% to 278Mt/yr.

However, the deal with San Miguel has attracted the attention of the Philippine Competition
Commission (PCC), which reported in November 2019 that it was considering voluntary commitments
submitted by First Stronghold Cement and related parties. This is due to First Stronghold Cement already
having a 35% stake in Eagle Cement, the country’s second-largest cement producer.

Initial findings by the PCC on the proposed purchase found it could affect the market concentration of
relevant products in parts of Luzon, and Northern and Southern Mindanao. This would normally prompt
a stage two review of the proposed acquisition. It is possible that divestments prior to completion of the
deal could help avoid this step.

The transfer of Holcim Philippines to San Miguel Group, which is likely to be completed in 2020, will
drastically alter the Philippines’ cement sector landscape (See Figure 3). This is before one even
considers the potential sale of CRH-Aboitiz’s assets. CRH engaged JP Morgan to investigate the sale of its
entire operation in the Philippines in November 2019. At the time, The Irish Times reported the
estimated value of the divestment as Euro1.82-2.73bn. No buyer has come forward to date.

New plants on the horizon

With such significant imports heading into the Philippines in 2019, there is strong impetus to build new
cement capacity in the country itself. Indeed, there are three major projects currently in the pipeline
from a mixture of established producers and newcomers.

In June 2019 Eagle Cement announced that the opening of its new Malabuyoc integrated 2.0Mt/yr plant
in Cebu has been delayed by six months to mid-2021. The new unit had been scheduled to start
operation in late 2020 but has been delayed due to issues obtaining permits. The project will bring
Eagle’s capacity to 10.4Mt/yr, perhaps enough to make it the market leader, depending on divestments
elsewhere.
Big Boss Cement and Petra Cement are spending US$193m on cement grinding plant projects in
Pampanga and Zamboanga. Big Boss Cement is building four cement lines at its Pampanga plant, while
Petra Cement is building two lines at Zamboanga del Norte. Both companies have the same
shareholders, led by prominent businessman Henry Sy Jr.

Company President Gilbert S Cruz said that the companies will spend US$135m at Pampanga plant and
US$58m at the Zamboanga plant. Each line will have a cement production capacity of around 0.5Mt/yr.
The company reports that construction of two production lines was completed at the Pampanga plant at
the end of 2019 and that the remaining two are scheduled for completion in the first quarter of 2020.
Big Boss Cement and its related companies also plan to build new plants at General Santos, Negros and
Iloilo. It aims to reach a production capacity of over 5Mt/yr by the mid-2020s.

The company says it is using a ground activated sand by heating (G-ASH) process to produce a binding
material for concrete that does not use imported clinker. It has claimed that it is the first cement
company in the world to do so.

In October 2019 Phinma Corporation announced that it would spend US$50m on a new grinding plant at
Bataan with a production capacity of 2Mt/yr. Philcement, a subsidiary of Phinma Corp. and Seasia
Nectar Port Services (SNPS), have signed a deal to take over certain construction-in-progress assets,
including the usage rights to pier facilities and land currently under lease by Philcement, for a terminal
for US$15.5m, according to the Philippine Daily Inquirer newspaper. President and CEO Eduardo
Sahagun said that the company would need up to US$35m to complete the project. Once competed it
will be possible to expand the unit to 4.0Mt/yr, depending on market demand.

In addition to the above, the major Filipino construction conglomerate DCMI Holdings has hinted at a
number of cement plant projects over the years, most recently in 2017, when it stirred rumours of a
new integrated plant on Semirara Island in Western Visayas. It previously announced three grinding
plants in 2016. However, none of these projects appears to have made it to completion at the time of
publication.

Future

Figure 3 shows that, should all of the planned capacity additions be realised, the next two years to the
end of 2021 could see the addition of a further 7.7Mt/yr of cement production capacity to 43.5Mt/yr.
This is around 21% more than 35.8Mt/yr at present. While some projects may fall by the wayside, it
seems very likely that the Philippines’ cement capacity will exceed 40Mt/yr in the near future.
There are still two and a half years of President Duterte’s six year Presidential term left. If the
emphasis on ‘Build Build Build’-ing remains strong, the cement sector of the Philippines will be well
supported by growing local demand as it expands its capacity.

https://www.globalcement.com/magazine/articles/1153-build-build-build-ing-in-the-philippines

The administration of President Rodrigo Roa Duterte aims to upgrade the country’s extensive
infrastructure network and spur economic growth in the countryside through his flagship project
called Build, Build, Build — a series of infrastructure projects worth P8 trillion and aimed for
completion by 2022.

To bolster the government’s efforts, building solutions provider Holcim Philippines, Inc. has embarked
on a series of projects in an effort to increase its cement production capacity, from the current 10
million metric tons to 12 million metric tons by 2019.

The endeavor will improve Holcim’s ability to provide its most valuable material to where it is needed
more. At the same time, the company is looking into creating a more positive impact beyond
supplying cement to industry partners and consumers in face of this large-scale infrastructure
endeavor by the government. The company aims to demonstrate to industry partners that innovative
building materials — from structural to finishing applications — are crucial in complete projects in a
faster and more cost-effective manner.

“By working hand in hand with our partners and customers at the very start, we gain a deeper
understanding of their needs, allowing us to fully and jointly focus on value to support with tailored
approaches, products and services that improve their execution of projects,” Vu Huy Dat said.

This strategy has allowed Holcim Philippines to develop an array of innovative construction solutions
and services that are useful in all phases of construction — whether in road, infrastructure, residential
and other construction projects. Dubbed PROSOLUTIONS, these construction solutions and services
reflect the company’s commitment to help industry partners and consumers build better with
certainty.

PROSOLUTIONS has already been offered in the road infrastructure segment, which is an important
aspect of the Build Build Build program. So far, it has received positive response from industry
partners working on the government’s road infrastructure projects.
One such solution already introduced is the roller-compacted concrete (RCC), which the Department
of Public Works and Highways (DPWH) has already set standards for last year. The product is seen to
hasten the road construction process, particularly for secondary roads.

Another solution also introduced is SuperFast-Crete, which has been already used in the past two
years to conduct road repairs along C5 and EDSA, two of the busiest thoroughfares in Metro Manila.
SuperFast-Crete is a fast-setting concrete solution that allows construction crews to finish road repairs
rapidly, enabling them to open the road within 12 to 24 hours after work completion.

Holcim Philippines is also putting forward its soil stabilization technology for consideration in
government projects. The said technology improves existing soil conditions in places not suited for
road construction.

Anticipating the rollout of road infrastructure projects in rural areas, Holcim Philippines also began
development of mobile laboratories last year to enable fast access to soil testing and to provide
technical support to construction crews. The mobile laboratories can be easily deployed in project
areas and are well equipped to conduct material testing of concrete, aggregates, soil and other as-
built requirements, thereby enabling contractors to optimize requirements and save on costs. These
also serve as a classroom-on-wheels for project workers that need training on best practices and
latest techniques in the building industry. A new, dedicated technical laboratory in Davao will
complement these laboratories this year.

These road solutions are among Holcim Philippines’ PROSOLUTIONS offerings. With the Build, Build,
Build Program now underway, the company is beyond ready to support the government and its
industry partners deliver additional value to their projects

https://www.philstar.com/business/2018/05/27/1818832/holcim-develops-faster-more-cost-effective-
building-solutions

In support of the “Build, Build, Build” program of the Duterte administration, the leading building
solutions provider Holcim Philippines, Inc. recently introduced a new, special blended cement product
formulated with lower impact on the environment than that of the Ordinary Portland Cement (OPC).
“Solido-made concrete is more durable and less prone to water and chemical seepage that causes
deterioration from within,” said Maganti. “This is due to Solido’s mineral additives that make concrete
less permeable while lowering heat that causes thermal cracks in the structure.”

Solido exceeds the construction industry’s compressive strength standards for the 28-day mark even
as it continues to grow stronger, as compared with OPC. Furthermore, as Solido concrete is easier to
mix and place, work becomes faster.

Part of the offering to Solido users are technical trainings and tests, and field support to provide
packaging format options that are suitable to their projects. Holcim has also scheduled road shows
nationwide to introduce Solido.

Beyond product performance, Solido is more environment-friendly than OPC due to its lower clinker
content, the intermediate product responsible for a significant amount of carbon dioxide emissions
during cement production.

Holcim Philippines is committed to the highest standards of sustainable operations and manufacturing
excellence. Its plants are certified under ISO 14001:2004 (Environmental Management System), ISO
9001:2008 (Quality Management System) and OHSAS 18001:2007 (Occupational Health and Safety
Management System).

Holcim Philippines is a member of the Lafarge Holcim Group, the world leader in the building materials
industry present in 80 countries with over 80,000 employees.

https://tribune.net.ph/index.php/2019/03/31/more-durable-cement-launched/

SEEING a strong demand for construction materials on the back of the government’s massive
infrastructure projects, Holcim Philippines Inc. is urging the shift of local contractors to blended
cement to build roads mainly because of its lesser impact on the environment and better
performance.

As part of President Duterte’s P8trillion “Build, Build, Build” program to upgrade key infrastructures in
the country, the Department of Public Works and Highways (DPWH) reported that 3,945 kilometers of
roads have been built by the current administration as of July this year, with more projects under way
until 2022.
According to Holcim Philippines Senior Vice President (SVP) for Sales William Sumalinog, the majority
of national roads are still built using Ordinary Portland Cement (OPC), which has a higher clinker
component than blended ones.

Clinker is an intermediate product and causes a significant release of carbon dioxide during cement
production. Holcim has been maximizing its production process to mitigate emissions from clinker
making with the use of blended cements as one major lever.

The top executive said that the DPWH has allowed the utilization of blended cement for road
constructions since June 2016 via Department Order (DO) 133. This directive amends building
standards for concrete pavements that previously specified OPC.

The DO 133 is aimed at helping the government’s intention to reduce greenhouse gas emissions.

“The order is aligned with Holcim Philippines’s efforts to lower emissions from cement production as
part of our overall sustainability commitment. Aside from pushing efficiency initiatives, getting our
partners to shift to blended cement products is key to meeting our environmental targets,” Sumalinog
said.

He also pointed out that the DPWH order, likewise, acknowledges that blended cement meets the
quality standards for strength and durability for roads. The SVP for sales of Holcim Philippines noted
that it may even perform better in some cases as it can be customized to address the specific
durability challenges present in sites where structures will be built.

Sumalinog shared that since the issuance of the directive, the cement manufacturer has been working
with its business partners and regional DPWH offices to highlight the benefits of blended cement over
OPC through its engagement programs such as Holcim Building Bridges.

The building solution firm offers products ranging from structuring to finishing applications for
infrastructure projects and even simple home repairs.

It has cement manufacturing facilities in La Union, Bulacan, Misamis Oriental and Davao, as well as
aggregates and dry mix business and technical support facilities for building solutions.
Holcim Philippines is a member of the LafargeHolcim Group present in 80 countries with over 80,000
employees.

To further support the nation’s strong economic development and robust construction activity, it
plans to invest nearly $300 million to increase its cement production capacity by 30 percent to 13
million metric tons by 2020.

Set to be upgraded are its facilities in Bulacan and Misamis Oriental with the installation of new and
efficient kilns and mills and waste heat recovery systems as part of its cost focus.

“Our company believes in the sustained development of the Philippines. This investment is proof of
our confidence in the country and our commitment to be a strong partner for progress,” said Tomas
Alcantara, chairman of Holcim Philippines.

“With this, Holcim Philippines will continue being a reliable partner in building a better future for the
country,” he added.

For Holcim Philippines President and CEO John Stull, these initiatives enable their company to keep on
playing a pivotal role in the country’s growth.

“Our capacity expansion ensures that we can provide a steady supply of quality building materials to
support the government’s infrastructure program and the resulting construction activity from the
economy’s sustained rise,” he said.

With interest expenses from shortterm loans related to capital expenditures to raise production
capacity, the publicly listed company reported that its net income for the third quarter of 2018 reached
P176.9 million compared with P337.4 million recorded during the same period last year.

https://www.pressreader.com/philippines/businessmirror/20181219/282316796167182

Cement maker Holcim Philippines Inc. has completed the expansion of its La Union plant two months
ahead of schedule, a statement on Thursday showed.

The project mainly involved the installation of new grinding equipment and storage facilities. With the
project, the Bacnotan, La Union plant can expect an 80-percent increase in annual cement output to
1.8 million tons.
Holcim Philippines president and CEO John Stull said the expansion project would help the company
serve its customers in North Luzon as well as the Duterte administration’s cornerstone “Build, Build,
Build” infrastructure initiative.

“This project is proof of our commitment to support our customers as construction activity picks up
with the government’s Build, Build, Build program. With our expansion and efficiency initiatives, we
can better provide a reliable supply of high-quality cement to help our partners advance the region’s
development,” Stull said in the statement.

Latest government data showed that two of the three regions in North Luzon outpaced the national
economic growth rate in 2017.

Holcim Philippines said the La Union plant upgrade was in sync with the company’s broader expansion
program in the country.

The second phase involves improvements to its Bulacan and Misamis Oriental plants amounting to
$300 million. These will raise the company’s annual cement production capacity by 30 percent to 13
million metric tons by 2020.

Holcim also operates cement manufacturing facilities in Batangas and Davao. —MIGUEL R. CAMUS

https://business.inquirer.net/265534/holcim-completes-la-union-plant-expansion

Leading cement maker Holcim Philippines, Inc. celebrated with its most valued stakeholders the
company’s improved ability to support the progress of Davao City, Mindanao and the rest of the
nation during the inauguration ceremony of new facilities there on August 16.

Holcim completed the expansion program of its Davao plant in June to raise its annual production
capacity by 700,000 metric tons to 2.4 million metric tons. The company installed a new pipe for
loading cement to the silos from the pier, eco-hoppers to improve dust emissions and an overhead
crane.
Department of Trade and Industry (DTI) Undersecretary for Consumer Protection Ruth Castelo
acknowledged the importance of Holcim’s sustained expansion and called on the company to continue
following government standards that protect customers.

“We recognize that this effort greatly contributes to the ongoing implementation of the ‘Build, Build,
Build’ Program of the government. Moreover, industry-led development initiatives such as this are
good indicators that the Philippine economy is robust and booming. But while the DTI supports the
growth of industries and the economy, it also plays a vital role in protecting the rights and welfare of
the consumers. For this reason, the DTI adopts and promulgates safety and quality standards for
products and services to protect the public against unreasonable risks of injury and product-related
deaths. We trust that Holcim Philippines, as one of the leaders in the cement industry, holds in high
regard the quality and safety of your products not just for the growth of your company, but for the
protection of your customers—the consuming public,” she said.

In a message delivered by Councilor Louie John Bonguyan, Davao City Mayor Sara Duterte-Carpio
congratulated Holcim’s expansion and its commitment to excellence.

“May this expansion invigorate your team to continue maintaining a sustainable business
environment for your customers and stakeholders, without sacrificing quality and the environment
and contributing to the socio-economic development of the country as we all continue to ‘Build, Build,
Build’ the Philippines,” she added.

Officials of Holcim Philippines thanked its partners for their continuing support and trust that have
allowed the company to thrive in its decades-long stay in Mindanao, where it operates two of the three
cement plants there including the only one in Davao.

“This milestone is not ours alone. It is a success that everyone in Davao is a part of. Davao is a home of
Holcim Philippines. Our products are made with materials from Davao by the people of Davao. The bags
of cement that come out of this facility are as native to Davao as durian. So when you see the progress
of South Mindanao in the coming years, bear in mind that these was made possible not just by Holcim
Philippines but by Davao as well,” Holcim Philippines Chairman Tomas Alcantara said.

“Our company has long promised to be a partner for progress, that we will do our part to advance the
development of this country and uplift our partners. Our expansion is a clear demonstration of this
commitment. When the Davao plant opened in 1968, it only had an annual capacity of less than 200,000
tons. Now it is capable of producing more than 10 times that, reflecting our company’s resolve to
support the sustained growth and development of this region,” Holcim Philippines President and CEO
John Stull added.
https://businessdiary.com.ph/18769/holcim-partners-inaugurate-new-davao-plant-facilities/