Llyods Richfield Industrial Corp. (LRIC), a wholly-owned subsidiary of Southeast Asia Cement Holdings Inc. (Seacem), said it has ceased its manufacturing activities in its Cebu plant effective close of business hours last Monday, Nov. 5, 2001.
Roland Ngo, Seacem acting corporate information officer, told the Philippine Stock Exchange that the closure was a "consequence of poor cement market conditions and today’s unpromising future predictions of construction activity in the Philippines."
LRIC’s decision followed similar recent cases of temporary shutdown or production cutbacks by other major cement firms such as Solid Cement, Apo Cement, Continental Cement and even LRIC sister company FR Cement.
"This temporary measure arises from a strategic review of market conditions, costs and capacity utilization and is aimed at rationalizing costs and maximizing competitiveness," Ngo said.
He added, however, that LRIC will continue its trading operations, utilizing products purchased from other cement manufacturers as well. Among the cement brands it markets in the Visayas include Falcon and Eagle.
Ngo said all personnel affected by the temporary suspension of operations will be laid off up to a maximum period of six months as allowed by law.
"The management will, however, continue to review the state of the cement business to determine the viability of resuming its activities, which would enable employees to be recalled to work," he added.
LRIC’s management consists of the publicly-listed Seacem – one of the country’s largest cement producers – and its foreign partner France’s Lafarge S.A., a global leader in the building and construction field.
Lafarge, however, continue to view the Philippine market favorably after it acquired Blue Circle Philippines Inc., the foreign partner of Fortune Cement, whose majority shareholder is the SM Group of retail tycoon Henry Sy.
In August last year, FCC started integrating its operations with three other cement companies: Republic Cement, Zeus Holdings Inc. and Iligan Cement through a simultaneous share exchange to create the country’s second largest cement manufacturing bloc. – Conrado Diaz Jr.