SAN MIGUEL Corp. (SMC) said it wants to double the capacity of its P10-billion cement manufacturing facility in Davao to lessen the delays of infrastructure projects.
SMC’s cement unit, Southern Concrete Industries Corp., will work on an expansion plan for the new cement grinding plant. It is expected to be ready for commercial operations in July.
“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,” SMC President and Chief Executive Officer Ramon S. Ang said in a media release.
The cement grinding plant can produce up to 2 million metric tons of cement per year, equivalent to around 50 million bags. It is expected to eventually 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. 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,” Mr. Ang said.
“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,” he added.
In the third quarter of 2021, the company’s net loss attributable to parent was at P1.1 billion, a reversal of its P7.17-billion profit year on year.
From January to September 2021, attributable net income was at P11.97 billion, a turnaround from its net loss of P425 million the year before.
At the stock exchange on Thursday, SMC shares rose 0.83% or 90 centavos to close at P109.90 apiece. — Luisa Maria Jacinta C. Jocson
