Japanese cement maker to build distribution terminal in Luzon

TOKYO-based Taiheiyo Cement Corp. (TCC) has decided to establish a new cement terminal in Calaca, Batangas to serve Luzon, the largest cement consumption area in the Philippines.

Its consolidated subsidiary, Taiheiyo Cement Philippines, Inc. (TCPI), which runs a cement manufacturing facility in San Fernando, Cebu, will build and operate the planned terminal, a hub to distribute its Grand branded cement products.

Masafumi Fushihara, TCC president and representative director, announced the project from the TCC headquarters Bunkyo-ku, Tokyo. The company recognizes the cement demand in the Philippines has been growing, he said.

TCPI estimates demand to have increased by approximately 30 percent from 2015 to 2019, reaching 32 million tons, noted its news release.

The new cement terminal will have a capability to supply 700,000 tons of cement annually to Luzon regions, it added.

Despite demand shrinking in 2020 during the pandemic, it is expected to rise again with strong GDP recovery, estimated to be plus 5.6 percent in 2023.

The company also looked at the massive infrastructure investment program “Build Better More” of President Marcos’s administration.

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TCPI’s strategy to advance its presence in the Philippines market targets reaching an annual sales volume of five million tons and a sales share of 10 percent by the 2030’s.

Currently, TCPI is upgrading its cement production line to introduce the most advanced technology in the world, a ₱15 billion project named Renewal, undertaken since a facility from Texas, USA got reassembled onsite in 1992 by the previous cement operator.

Upon completion, the company’s cement production capacity will be increased to three million tons per year after the start of commercial operation from May 2024.

“Following this initiative, we will build a new cement distribution terminal in Calaca city, Batangas province in southern Luzon, in order to accelerate progress toward achieving our sales targets,” noted the company statement.

Utilizing this terminal, the company plans to transport and sell blended cement, for which demand has been increasing in recent years, based on Taiheiyo’s strategy to reduce CO2 emissions per unit of production.

At the same time, TCPI is considering strengthening its marine logistics system with an eye on the future of TCC’s business in the Philippines and expects a total investment of approximately JPY10 billion (US$68.7 million; ₱3.8 billion).

Under the “Carbon Neutral Strategy 2050,” TCC is working to achieve carbon neutrality throughout the supply chain by 2050.

By continuing to demonstrate the group’s comprehensive strengths and actively focusing not only on economic development but on reducing environmental impact, the Taiheiyo aims to become a corporate group that provides safety and security to society in the Pacific Rim.