Taiheiyo Cement Corporation of Japan is investing P15 billion in the Philippines for the construction of new state of the art production line in Cebu that will increase it capacity by 50 percent in the immediate term.
Trade and Industry Ramon M. Lopez said the Japanese principal has given the go signal for its Philippine subsidiary, Taiheiyo Cement Philippines, Inc. (TCPI) to formally announce its decision to construct a new production line that will employ novel and advanced technologies from developers in Europe and other leading global technology providers.
Lopez said the expansion promises to increase TCPI’s cement capacity by 50 percent in the immediate term and by 150 percent in the medium term. The enhanced capacity is projected to increase Taiheiyo’s current Philippine market share from 7 percent to 10 percent. The project also adheres to green economy requirements via the introduction of energy efficient operations, which will bring about a reduction by 10 percent of carbon dioxide emissions from energy use in clinker production from the old line’s energy efficiency rates.
Trade Undersecretary Ceferino Rodolfo advised that the DTI-Board of Investments (BOI) will review the project’s new technologies for incentive eligibility. He also said that BOI will be ready to provide investment facilitation services through its standing cooperation with related agencies responsible for the issuance of relevant permits and licenses.
The Taiheiyo Cement Group headquarters in Odaiba, Tokyo, Japan runs diverse businesses from cement, mineral resources, environmental, construction materials to real estate, engineering, data processing, finance, transportation, warehousing, chemicals, and sports.
Lopez also announced that various infrastructure commitments with Taiheiyo Cement Group are underway to support the growing demand in the country’s housing, commercial, and infrastructure development sectors, especially with the massive “Build, Build, Build” program.
The agreement was part of the Letter of Intent that DTI and Taiheiyo, represented by President and Representative Director Shuji Fukuda, signed during President Rodrigo Roa Duterte’s official working visit in Tokyo last October 2017.The LOI, which pledged to increase Taiheiyo’s production capacity, included expanding shipping bases out of Cebu to areas such as Luzon, Iloilo, and Davao. The company also committed to enhance logistics and meet environmental protection programs through the installation of a 2-kilometer marine belt conveyor, expansion of the berth and jetty in San Fernando, Cebu, and the adoption of energy-efficient production processes.
The Philippines imported $543.9 million worth of cement in 2019 increasing by an average of 213.8 percent from 2015. This makes the country the third-largest cement importer in the world after the US and China.