Cement firm mulls price increase

The proliferation of cheap cement imports has left yet another big player in limbo as the British-based Blue Circle Phils. Inc. said it is contemplating on raising its prices amid a huge 20 percent cutdown in its market share eaten up by imports.

Officials of the cement giant yesterday aired their grievances to the Board of Investments (BOI), which promised to look seriously into the matter after the industry-wide Philippine Cement Manufacturers Corp. (Philcemcor) filed an anti-dumping protest against cement producers from Taiwan and Japan.

Blue Circle is one of the four big foreign players in the global cement business that has entered the Philippine market through their tie-ups and buy-outs of existing local firms. The others are Mexico’s Cemex, Swiss-based Holderbank and Lafarge of France.

"We’re looking into the case of unfair imports since the cement industry is very strategic with respect to economic development," BOI managing head Raul Hernandez told reporters.

He said Blue Circle insinuated that it could raise its prices to cope with the reduced profit margin but added they could go as far as 10 percent under the law.

"But if you increase, it will just encourage demand for the cheaper imports," Hernandez pointed out.

In the meantime, the BOI head said the agency can help Blue Circle and the other cement makers in sourcing cheaper raw materials to gain competitiveness against the less expensive imports.

Blue Circle has bought into local cement companies Republic Cement, Mindanao Portland Cement, Iligan Cement and Fortune Cement.