APO Cement Corporation (APO Cement) said it will close its terminal in Davao and suspend one of its kiln operations in Cebu as suspension of its quarry operations in Cebu has affected supply sourcing. In a statement, APO said it has decided to implement additional measures to deal with the continuing challenges of having to source raw materials from different regions of the Philippines and from outside of the Philippines in order to produce cement. Earlier, APO Cement announced that its production costs have gone up and has impacted its operations due to the continued suspension of the quarry operations of APO Land & Quarry Corporation (ALQC), a principal raw material provider of APO Cement, following the landslide that claimed the lives of 56 people. The kiln is the heart of the cement manufacturing process and is the main equipment utilized to produce clinker, the primary component for cement. The Davao terminal holds and dispatches 25,000 bags on a daily basis. As much as the company commits to support the government’s massive infrastructure program, APO Cement has no choice but to also indefinitely suspend the operation of one of its kilns in Cebu. APO Cement is likewise constrained to engage with its suppliers in Cebu and neighboring provinces and is required to take actions in order to further reduce cost and extend payment terms. Furthermore, with the anticipated depressed output of the plant, APO Cement will implement a reduced workweek to decrease its fixed costs and expenses. This is in addition to the temporary suspensions earlier announced, affecting at least 30 percent of its workforce and reducing around 40 percent of its contractors. Lastly, to try to partially recover the increase in its production costs, APO Cement intends to implement price increase of its cement products by P20. “It is regrettable that these difficult decisions had to be made, but APO Cement needs to take remedial measures to reduce the adverse impact of the current situation in this period of uncertainty brought about by the disruption in APO Cement’s source of raw materials and to pursue the best interest of the organization’s various stakeholders,” the company said. Technical experts from the DENR presented an official report in October 22 stating that the Sept. 20 landslide in Naga, Cebu was due to natural causes. This was the same findings from the companies’ private geology experts from the US, Mexico and the Philippines.