MANILA, Philippines - Cement company Lafarge Republic Inc. (LRI) said it will increase production capacity starting the first quarter of 2013, due to strong demand in the Philippines.
With the increased capacity, it will be able to supply an additional one million ton of cement per year.
Don Lee, Country CEO of Lafarge in the Philippines and LRI Director, said the company has seen increasing demand for its products and services from both public and private sector in the first half of the year.
"Based upon the strong demand growth for building materials during the first half of 2012 and our understanding of the order backlog of construction projects for the leading construction companies, we expect another year of sales and earnings growth in 2013. LRI’s capacity expansion projects will enable us to supply more volume in FY2013," he said.
LRI will be revamping its Danao grinding plant in Cebu and debottlenecking of Norzagaray Plant’s mill in Bulacan.
By the first quarter of 2013, LRI hopes to supply an additional 200 kilo tons of cement per year in Luzon, 650 kilo tons per year in Visayas and another 100 kilotons per year in Mindanao.
"The re-commissioning of our facility in Danao will enable us to have the flexibility to serve the demand during peak periods and improve our share in the Visayas-Mindanao market," Lee said.
LRI aggregates subsidiary Batong Angono Aggregates Corporation will also boost capacity with its newly-commissioned Plant 5 in Rizal. It will supply an additional 2 million tons per year of high quality aggregates, manufactured sand and base course in the National Capital Region.
"As a leading company within the Philippine construction industry, LRI is committed to supporting the ambitious growth targets of both the government and the private sector. Despite the uncertainties and strong headwinds within the global economy, the Philippines has demonstrated a surprising resiliency that we expect to continue in the mid-term," Lee said.