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Holcim Philippines to hike Davao cement production to 2.2 million tons

October 27, 2017

Building solutions provider Holcim Philippines, Inc. has started its Php1.5 billion project to raise the production capacity of its Davao plant to 2.2 million metric tons to support the government’s infrastructure thrust in the region.

To better support the government’s infrastructure drive in Mindanao, building solutions provider Holcim Philippines, Inc. will invest close to Php1.5 billion in the next two years to raise its cement production capacity in Davao by more than half to 2.2 million metric tons.

Holcim Philippines President and CEO Sapna Sood along with local government officials, customers and company leaders, led the groundbreaking ceremonies on October 27 for the upgrading of the company’s facilities targeted for completion in the first half of 2019.

“We are proud of our many years of partnership in the city’s development and excited to support its sustained growth. This investment is an important part of our commitment for a reliable supply to support the government’s infrastructure drive in the region,” she said.

The Davao expansion is part of Holcim Philippines’s Php2.7 billion investment to raise its nationwide cement production to 12 million metric tons from the present 10 million metric tons. The increased capacity allows Holcim Philippines to continue supporting the country’s development as the government ramps up infrastructure spending up to 7% of GDP by 2022.

The government has identified upgrading infrastructure in Mindanao as a key priority and plans to steadily increase allocations for development works in the region. This year, the government allocated around Php476 billion for the Department of Public Works and Highways (DPWH) of which almost 40% will be spent for road building in Mindanao.

Davao City is also set to receive increased public funding for infrastructure, with recent reports saying close to Php50 billion will be spent for road projects to improve the traffic flow of the growing city and the overall logistics environment. Davao is also included in the planned Mindanao Railway project, with a 105-kilometer segment that opens up more economic opportunities for Davao and its people.