LOCAL cement producers are urging Filipinos and developers to embrace the “Buy local, Build local” initiative amid the continuing influx of imports, mostly from Vietnam.
This campaign spearheaded by the Cement Manufacturers Association of the Philippines (Cemap) and Eagle Cement Corp., in partnership with the Department of Trade and Industry, encourages local consumers and developers to protect the domestic industry by prioritizing the use of locally manufactured cement.
According to Cemap, despite the adequate cement supply, the industry continues to be plagued by the continuing influx of imports, mostly from Vietnam, despite the imposition of dumping duties to certain manufacturers and exporters.
The group reported that importers brought in nearly seven million tons (MT) in 2023, surpassing the figure from 2022. Local players anticipate further increases in imports, especially as the Vietnamese cement market contracts by six percent and shifts focus towards exports to enhance industry performance.
“This indicates that more imports are on their way to be dumped in the Philippines in the coming months, further causing serious injury to the already beleaguered Philippine cement industry,” Cemap said in a statement.
GDP contribution
The local cement industry accounts for at least one percent of the gross domestic product. Local companies have invested billions in the manufacturing sector, creating about 130,000 direct and indirect jobs and a multiplier effect of around 3x to the economy.
Over the past few years, the local cement industry has invested in additional capacity to make sure that the industry has adequate supply to provide for the nation’s cement demand.
Local manufacturers are investing in additional capacity totaling to 17 million tons per annum (MTPA) over the last five years—San Miguel Group +6 MTPA, Taiheiyo +3 MTPA, Republic +2 MTPA, Cemex +1.5 MTPA, Holcim +1.4 MTPA, and other players +3 MTPA. This brings total local cement production capacity to 53 MT in 2024 while demand continues to contract and currently forecasted to rest at 34.5 MT.
But despite the economic contribution and additional investments, Cemap said the country’s cement industry has been forced to downscale operations as imports continue to cannibalize the market, and in certain cases lay off workers due to the worsening market situation.
“With the projected increase of cement imports, local manufacturers will be forced to further downscale operations until demand recovers or importers cease dumping and exploiting the local market,” the group said.
Government projects
Moreover, besides urging consumers and developers to use local cement products, the group also urge the government to prefer and prioritize procuring locally manufactured cement for government infrastructure projects.
By starting with government-led consumption, which accounts for 40 percent of total demand, Cemap said this will reduce reliance on imported products, encourage investments in the sector, create and maintain thousands of jobs, generate more tax revenues, significantly save the country’s dollar reserves, and ultimately support the growth of the industry and boost economic development. / KOC