MANILA -- Eagle Cement Corp. is working on its fourth cement production plant in Malabuyoc, Cebu to meet rising demand, aiming to lead the industry in terms of capacity by 2020 after posting a record profit last year.
“By 2020, Line 4 (Cebu) completion will raise production capacity to 9.1 million MT (metric tons),” Eagle President and Chief Executive Officer John Paul Ang told reporters after the company’s stockholders’ meeting Thursday.
Ang said the Cebu line will provide the company a nationwide reach through markets in the Visayas and Mindanao.
Eagle Cement’s current production capacity is 5.1 million MT.
He noted that it would also commission within the year its third production line in Bulacan, adding 2 million metric tons to its current capacity, and expand its market reach to the Bicol and Mimaropa (Mindoro, Marinduque, Romblon, Palawan) regions.
The company’s expansion strategy indicates its bullish outlook for the local cement sector, he said.
“Private consumption is still strong as conglomerates embark on expansion strategies, and the government remains steadfast in its national infrastructure push,” added Ang.
Meanwhile, Eagle Cement reported that it registered a record-high PHP4.26 billion in net income for 2017, up 4 percent from the previous year.
Robust growth in sales volume and cost efficiencies achieved through upgrading and de-bottlenecking efforts in existing production lines boosted profits.
The company also remained resilient amid last year’s tighter competition in the industry, as it posted PHP14.27 billion in net sales, a 12-percent jump from 2016. (PNA)
