Cemex pins growth on govt spending

While the cement industry remains largely underutilized, increasing government spending may lift its performance before the year ends, according to building materials manufacturer Cemex Philippines. “We’re hoping the increased spending of the government on infrastructure projects this election period will continue throughout the year," said Paul Arcenas, Cemex vice president for planning. Compounded net growth in the demand for cement was between 0.5 and 1 percent from 1998 to 2007. In 2008, business started picking up, but within a limited pace. “We’re good but it could be better. Let’s hope that the investment environment will continue to improve," said Arcenas. The private sector has led the construction industry in the previous years, but government builders are slowly getting in on the action since 2008. This year, much of the public spending is on infrastructures. “There’s movement but if you compare the per capita of the Philippines, it’s way below than the per capita utilization of Malaysia and Thailand," Arcenas said. A global building materials company, Cemex capped its medium-term expansion plans because of cement oversupply in the country. “There is no immediate plan to put up another plant. Cement processing is a very capital intensive industry. We’ll need maybe billions of pesos just to put up another plant." Arcenas said. With a combined capacity of 1.8 million metric tons, the company is maximizing the capacity of its plants in Naga, Cebu and in Antipolo, Rizal. —VS, GMANews.TV