Cemex subsidiary suspends Davao operations

MANILA, Philippines — A subsidiary of Cemex Holdings Philippines Inc. is temporarily suspending operations of its Davao terminal due to increasing costs and lower volumes amid the influx of cement imports from Vietnam.

In a statement yesterday, APO Cement Corp. said the continued influx of cement imports, particularly those coming from Vietnam, has made it increasingly difficult to maintain its operations in the Davao terminal due to rising costs and decreased volumes.

“Our operational costs in maintaining the Davao terminal have increased and continue to increase, while our volumes are decreasing due to the unabated entry of cement imports from Vietnam. Given these, we are constrained to suspend terminal operations in Davao,” Cemex Philippines VP for supply chain Edwin Hufemia said.

He said the suspension of operations in the Davao terminal would allow the company to continue focusing on efficiently running its plant and other terminals and warehouses.

“We remain committed to supporting the country’s development program and support the administration’s Build, Better, More infrastructure program, and we assure the public that there will be no disruption on the supply and delivery of our cement,” Hufemia said.

The Davao terminal has a dispatching capacity estimated at 25,000 bags daily.

APO Cement, whose cement manufacturing plant is located in Naga City, Cebu, is one of the principal operating subsidiaries of Cemex Holdings Philippines, Inc.

A petition for anti-dumping filed by local cement manufacturers against imported cement from Vietnam is pending before the Tariff Commission.

Last year, the Department of Trade Industry (DTI) imposed provisional anti-dumping duties on specific cement brands imported from Vietnam after conducting a preliminary determination on anti-dumping.

Former Trade Secretary Ramon Lopez earlier said the DTI found out that Type 1 and Type 1P cement from Vietnam were being dumped in the country and causing injury to the domestic cement industry.

The computed dumping margin or amount of bond for Type 1 cement imports from Vietnam ranges from $1.02 per metric ton (MT) to $10.53 per MT or 2.69 percent to 31.87 percent of the export price.

For Type 1P cement imports from Vietnam, the computed dumping margin or amount of bond ranges from $1.16 per MT to $12.79 per MT or 3.8 percent to 29.2 percent of the export price.

Type 1 cement is ordinary Portland cement, which has 90 to 95 percent clinker content and is used for high concrete designs with a minimal cement factor requirement. Meanwhile, Type 1P is blended cement composed of Portland cement and other natural mineral materials and is used for general purpose construction.

Under Republic Act 8752 or the Anti-Dumping Act of 1999, the DTI may initiate an anti-dumping investigation following receipt of a written application for such from the domestic industry.

Dumping occurs when an exporter sells products to an importer in the Philippines at prices lower than the normal value in its home country.

The DTI’s findings are based on its preliminary investigation of a petition filed by cement manufacturers Republic Cement & Building Materials Inc., CEMEX Philippines Holdings Inc.’s subsidiaries Solid Cement Corp. and Apo Cement Corp., and Holcim Philippines Inc. for anti-dumping duties on cement imports from Vietnam.