Megawide Construction Corp. plans to spend as much as ₱2 billion to expand its precast manufacturing capacity, positioning the infrastructure giant to absorb a record-breaking surge in its order book driven by government-backed socialized housing.

Edgar Saavedra,Megawide chairman, said the company is scouting for a site for an additional precast facility to meet the requirements of a massive residential pipeline.

“We are in expansion mode because we have to build up our capacity,” Saavedra told reporters.

The expansion comes as Megawide commits to delivering an initial 7,000 housing units for the Home Development Mutual Fund, the state-run agency widely known as Pag-IBIG Fund.

Saavedra said the commitment is expected to lift Megawide’s total order book by ₱20 billion, propelling it to an all-time high ranging from ₱70 billion to ₱80 billion.

The influx of work will rely heavily on the firm’s Precast and Construction Solutions unit, which provides the structural components for Megawide’s external developer clients, its own property arm PH1 World Developers, and the new Pag-IBIG projects managed directly by the parent company.

Saavedra said the company aims to scale far beyond the initial 7,000 units, citing a massive national housing backlog.

While many traditional real estate players avoid mass housing due to thin profit margins, Saavedra said Megawide’s background as a builder gives it a competitive edge.

The company is comfortable with low margins and can generate cost savings by acting as both developer and contractor, Saavedra said.

He added that Megawide will focus on high-volume delivery to ensure the business segment remains profitable.

To fuel this expansion, Pag-IBIG is injecting ₱10 billion into Megawide Dreamrise Residences Inc., a wholly owned subsidiary. The investment, structured as a subscription to perpetual preferred shares, will be paid in three tranches.

The capital is earmarked for the government’s expanded Pambansang Pabahay Para sa Pilipino program, which seeks to accelerate the delivery of affordable homes over the next two to three years.

Saavedra described the partnership with Pag-IBIG as a strategic move to address the chronic imbalance between supply and demand in the Philippine housing sector.

He noted that the company’s technical proficiency allows it to deliver high-quality units with the speed and consistency required by the state program.

Megawide has set a long-term goal of launching 100,000 units under the government program. The first 50,000 units are already identified in a five-year pipeline, with planned project launches across five locations in Cavite, including Imus, Dasmariñas, and Bacoor.