The proposed distribution facility will support the projected increased production of Taiheiyo Cement Philippines Inc. (TCPI), TCC’s consolidated subsidiary.
TCPI, which runs a cement manufacturing facility in San Fernando, Cebu, is expected to increase its output upon completion of a new production line in 2024.
In an emailed press statement, TCC disclosed plans to build and operate the distribution terminal, a hub to distribute its Grand-branded cement products.
Masafumi Fushihara, TCC president and representative director, announced the project from the TCC headquarters Bunkyo-ku, Tokyo. The company recognizes that the cement demand in the Philippines has been growing, he said.
TCPI estimates demand to have increased by approximately 30 percent from 2015 to 2019, reaching 32 million tons, noted its news release.
The new cement terminal will have the capability to supply 700,000 tons of cement annually to Luzon regions, it added.
In 2020, during the pandemic, the demand for cement products dropped but the company expects an increase in demand due to the Philippine’s strong gross domestic product (GDP) recovery, estimated at over 5.6 percent in 2023.
The company also looked at the massive infrastructure investment program “Build Better More” of President Marcos’s administration.
TCPI’s aims to increase its presence in the Philippine market, aiming to reach an annual sales volume of five million tons and a 10 percent share in sales in the 2030s.
Currently, TCPI is upgrading its cement production line to introduce the most advanced technology in the world. The company implemented ₱15-billion project named Renewal, since a facility from Texas, USA got reassembled onsite in 1992 by the previous cement operator.
Upon completion, the company’s cement production capacity will be increased to three million tons per year after the start of commercial operation on May 2024.
“Following this initiative, we will build a new cement distribution terminal in Calaca City, Batangas province in southern Luzon, in order to accelerate progress toward achieving our sales targets,” noted the company statement.
Utilizing this terminal, the company plans to transport and sell blended cement, for which demand has been increasing in recent years, based on Taiheiyo’s strategy to reduce CO2 emissions per unit of production.
At the same time, TCPI is considering strengthening its marine logistics system with an eye on the future of TCC’s business in the Philippines and expects a total investment of approximately JPY10 billion (US$68.7 million; ₱3.8 billion).
The new line will not only provide a stable supply of the highest quality cement by introducing state-of-the-art production technology but will also play a role in reducing CO2 emissions and recycling of waste.
Under the “Carbon Neutral Strategy 2050,” TCC is working to achieve carbon neutrality throughout the supply chain by 2050.
By continuing to demonstrate the group’s comprehensive strengths and actively focusing not only on economic development but on reducing environmental impact, the Taiheiyo aims to become a corporate group that provides safety and security to society in the Pacific Rim.