San Miguel Corporation (SMC) is planning to double the capacity of its P10-billion advanced cement manufacturing facility in Davao to 100 million bags after it starts full commercial operations later this year.
In a statement, SMC said its aim is to reduce reliance on imports and avoid delays in delivering critical infrastructure projects in the region.
SMC President and Chief Executive Officer Ramon S. Ang said that its cement unit, Southern Concrete Industries Corp., previously Oro Cemento Industries Corp., is eyeing to work immediately on an expansion plan for the new cement grinding plant.
The plant started commissioning activities late 2021 while full commercial operations are expected by July 2022.
The facility, which started construction in 2018, uses the latest technology and world-leading brands in cement grinding as well as in pollution abatement.
It was recently granted fiscal incentives by the Inter-Agency Fiscal Incentives Review Board (FIRB), chaired by Finance Secretary Carlos Dominguez III.
“We are grateful for the support of government and our communities in Darong, Davao del Sur, who immediately saw the many benefits and advantages of this modern cement facility,” said Ang.
He added that, “This plant was built to support infrastructure development and investments in Mindanao--to help sustain economic development, growth of local industries, and the creation of jobs. We will make sure we will hit the ground running when we start operations by July this year.”
The cement grinding plant, which can produce up to 2 million metric tons of cement per year, equivalent to some 50 million bags, is designed with a provision to readily expand capacity to 100 million bags.
“Our focus will be to immediately serve the needs of the Mindanao region, to fill in supply gaps, especially the demand for local cement,” Ang said.
He explained that, “Right now there is heavy reliance on imported cement. But our government’s goal is to lessen our dependence on imports, especially since supply, price, or quality issues directly impact, disrupt, or delay critical infrastructure development.”
“That is why we will look right away at doubling the capacity of the plant,” said Ang.
Apart from the plant itself, SMC also invested in building its own pier facility, which can receive clinker, gypsum, and limestone. It is also seen to help decongest the Davao commercial port.
“As with any project, we also encountered many challenges in finishing construction of the project during this pandemic. But we never wavered in our goal of completing it as safely and as quickly as possible. This way, by the time our country is in full recovery and build-back-better mode, Mindanao will also be fully ready,” Ang said.
According to the FIRB, the project’s benefits, including “stimulating forward linkages, promoting the use of energy-efficient equipment that can lead to transfer of knowledge, and improved productivity”, are seen to exceed foregone revenues in the form of tax exemptions.
During the project phase alone, the facility, located in an underdeveloped area, was able to provide 5,000 jobs. Meanwhile, full manning, once operational, is seen at over 600.
According to Ang, the plant is part of SMC’s long-term plan to help development in Mindanao.
Apart from other facilities currently being planned, constructed, or about to be completed, SMC has long had major operations in the region, where it has breweries, agro-industrial and food manufacturing facilities, and a power generation plant.