INVESTMENTS continue to pour in Mindanao, as Taiheyo Cement Philippines Inc. (TCPI), one of the leading cement industry players in the country, is expanding its operations in Davao City in a bid to equalize the level playing field here.
TCPI distribution manager Cesar Fernandez Jr., in an interview with SunStar Davao at the sidelines of the company's product launching at the Marco Polo Hotel-Davao Tuesday evening, said that the firm's expansion in Davao City will bring in more quality, affordable and locally made cement products.
"We chose Davao to be one of the top areas of expansion as demand for cement products here is on upward trajectory," he said, adding they also would want to take part in the development of Davao and Mindanao as a whole, as it is fast becoming the investment and infrastructure hub in the country.
TCPI will open a sales office and a 1,500-square-meter warehouse worth P30 million in Panacan, with a capacity of producing 200,000 bags of cement monthly. The warehouse is eyed to be opened early next year.
Davao area has an estimated demand of 10 million box of cement annually, while Mindanao's demand is estimated by industry players at 100 million boxes yearly.
Fernandez said that after the construction of its eight cement mills in Visayas, the company's capacity reached a staggering five million bags of cement a month, up to some 150 percent as compared to its previous capacity only at two million bags monthly.
"With our increased capacity, Cebu is saturated so we see the need to bring our products to other areas and Davao City was on top of the list. Our products reached here through our distributors but they don't know of the product, they think it's an imported brand but it is locally made," he said, adding that they are also eyeing Luzon as their expansion area.
TCPI, as a company, is managed by the Japanese counterpart. Their product is branded as "Grand." It follows the standard set by Japan International Standard.
TCPI regional sales manager Nestor Saldivar, for his part, said, "We are bringing cement that is very competitive to end-users so that cement industry will not be monopolized. We want everyone to know that there is a better competition. What we are bringing here are quality products to end users especially to common ordinary people. They can consume our products with cheaper, competitive price."
rFernandez also said that a huge demand of cement products was noted in the Philippine market for the past years, leaving players incapable of accommodating the surge of demand, thus the proliferation of imported cement products.
Saldivar projected that the industry will grow in multiple folds especially with the current administration's direction -- increase infrastructure spending.
Two years ago, Saldivar said, the country's demand for cement products are only at 21 million metric tons (MT) a year but now, it reached to 27 million.
"We expect bigger demand especially in Mindanao," Saldivar said.
He added that with their presence here, they will bring the company's thrust and be focused on their motto: "Our strength is your guarantee."
TCPI also intends to expand in some areas in the island including the cities of Cagayan de Oro City and General Santos, among others, after Davao City.