SMC builds up cement capacity

MANILA, Philippines — San Miguel Corp. (SMC) will beef up its cement capacity in Davao to avoid delays in delivering critical infrastructure projects in the region.

SMC president and CEO Ramon Ang said the company is looking to double the capacity of its P10-billion advanced cement manufacturing facility in Davao.

This would reduce the company’s reliance on imports and avoid delays in delivering critical infrastructure projects in the region.

SMC’s cement unit, Southern Concrete Industries Corp., previously Oro Cemento Industries Corp., is eyeing to work immediately on an expansion plan for the new cement grinding plant, which started commissioning activities late 2021.

Full commercial operations are expected by July 2022, Ang said.

“We will make sure we will hit the ground running when we start operations by July this year,” Ang said.

The facility uses the latest technology in cement grinding as well as in pollution abatement.

It was recently granted fiscal incentives by the Inter-Agency Fiscal Incentives Review Board (FIRB), chaired by Finance Secretary Carlos Dominguez III, SMC said.

“We are grateful for the support of government and our communities in Darong, Davao del Sur, who immediately saw the many benefits and advantages of this modern cement facility. 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,” Ang said.

The cement grinding plant, which can produce up to two million metric tons of cement per year, equivalent to some 50 million bags, is designed with a provision to readily 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,” said Ang.

SMC also invested in building its own pier facility, which can receive clinker, gypsum, and limestone, a move that would help decongest the Davao commercial port.

The expansion of the plant is part of SMC’s long-term plan to help development in Mindanao.