EAGLE Cement Corporation said it is on track to nearly double its production capacity to 9.1 million metric tons (MT) or about 230 million cement bags by 2020, from its current capacity of 5.1 million MT annually.
The increase will be driven by the company’s construction of plants in Bulacan and Cebu, which are scheduled to be completed in 2018 and 2020, respectively, Eagle’s Chief Executive Officer Paul Ang said in a media briefing on Tuesday at the Makati Shangri-la.
Each plant has a capacity of 2 million metric tons, Ang said. The two current existing plants are located in Bulacan.
Upon completion, the Cebu plant is expected to cater to the Visayas and Mindanao market.
Ang noted that the cement market nationwide grew by five to six percent in the first half of the year, based on the company’s internal data and data from the Bureau of Customs.
“We believe the market grew in the first half even with all the challenges in the industry,” said Ang.
Also on Tuesday, Eagle Cement reported that its net sales in the first half of this year reached P7.5 billion, an increase of 12 percent from P6.7 billion recorded in the first half of 2016.
The company said the growth was driven by an increase in sales volume of both bagged and bulk cement, partially offset by a decline in the average selling price of cement.
Eagle reported a 13 percent increase in net profit to P2.2 billion in the first half of this year from P1.97 billion in the same period last year
“Infrastructure spending, if it arrives, will be an add-on to our company,” Ang said.