ABOITIZINFRA Capital, a subsidiary of AboitizGroup, plans to spend up to $300 million over the next five years to increase the capacity of its cement business, Republic Cement and Building Materials (RCBM) in line with the Duterte administration’s thrust on infrastructure programs.
“We have agreed to increase our capacity of cement business in the Philippines. I think the investment will bring about a million tons a year of capacity,” AboitizInfra Capital President and Chief Executive Officer Sabin Aboitiz said during the parent company’s annual stockholders meeting in Makati on Monday.
“In the next five years, we’re going to need about $250 million to $300 million for the expansion,” he said.
Aside from increased production, the planned capital expenditure will also include the establishment of two to three new plants in the Philippines.
RCBM currently produces 7 million MT of cement per year from all of its plants in the country, making it the second leading cement manufacturer and supplier in the Philippines.
“We are optimistic about the national government’s plans to build, build, build the country’s infrastructure requirements. AboitizInfra Capital wants to play a significant role across various infrastructure sectors, to help drive economic progress and uplift the lives of every Filipino,” the company said.
“We expect to pour in large expenditures to narrow the current infrastructure gap in our country. We are fully committed to our mandate to deliver infrastructure projects that help bolster national development essential to the continued advancement of our economy,” it added.
For full-year 2016, Aboitiz said RCBM has contributed P1.6 billion in net income to its parent company.
Republic Cement, formerly Lafarge Republic Inc., is owned by a joint venture of Aboitiz Equity Ventures and Ireland-headquartered CRH International.