Consunji-led Concreat Holdings Philippines (CHP) , the former Cemex Holdings Philippines Inc., expects 2025 to remain a challenging year for the local cement industry but is hopeful of a recovery in the medium term and a financial turnaround in three years.

During the firm’s annual stockholders’ meeting, Concreat Chairman Isidro A. Consuji said “the road ahead will not be easy, but I have full confidence in our people's ability to bring CHP back to financial strength and market relevance to our shareholders, employees, business partners in those communities.”

“We recognize that 2025 will bring continued pressure to the industry. The cement business is highly competitive, and global challenges, from trade tension to recession, risk and geopolitical uncertainty can weigh down cost, price and demand, but these headwinds are not new to DMCI (DMCI Holdings Inc. is the parent company of Concreat),” said Concreat President and CEO Herbert M. Consunji.

He noted that, “We have a long proven history of navigating complex market cycles with fiscal discipline, determination and a strong work ethic.”

“While the short term may be challenging, we remain focused and cautiously optimistic about the future. We believe demand will recover over the medium term, infrastructure continues to be a government priority, backed by spending commitment of at least five percent of GDP (gross domestic product),” Consunji said.

He pointed out that, “Cement consumption per capita in the Philippines remain well below regional benchmarks suggesting strong room for growth. The projected housing backlog, expected to reach 10 million units by 2028, present significant upside for the industry.”

“Since management takeover, we have made a number of operational changes to position CHP for that looming demand,” Consunji said adding that the first of these steps is the completion of the major expansion of CHP’s Solid cement plant.

The firm has also reintroduced ordinary Portland cement to expand its product offering and market relevance because, with this product, he said “we can serve large scale construction projects across the country.”

Consunji said Concreat also continues to use alternative fuels, including plastic and used rubber tires, to enhance both sustainability and cost efficiency across its operations, equally important.

The firm is also drawing on synergies across the DMCI group to support its transformation, including the reduction in its reliance on imported fuel and minimized foreign exchange exposure by shifting to greater use of local resource, Semirara coal.

“We are using fly ash and bottom ash from our Calaca power plant to increase cement production while meeting quality standards. To expand our presence in the Visayas and Mindanao regions, we are strengthening our distribution network by tapping the resources of our affiliated companies.

“In addition, we are now extensively supplying the housing and infrastructure projects of the DMCI group, creating stable internal demand while continuing to serve broader markets,” he said.

Consunji noted though that, “We recognize that these steps, while timely and impactful, will not change the fortune of CHP overnight, turning around a company takes time, discipline, consistency, but we are confident that the steps we are taking today are steering CHP towards strength, efficiency and long term competitiveness. Our team in CHP is committed to find solution to turn the company around in three years time.”