Phinma expects to recoup plant investment in ‘few years’
Credit to Author: Tyrone Jasper C. Piad| Date: Tue, 04 Feb 2020 14:00:37 +0000
It would only take Phinma Corp. a “pretty short” time to recoup the P2.5-billion investment in its cement plant in Bataan province as the government continues to aggressively implement its infrastructure program, its top official said.
“Actually, pretty short. Few years. It depends on how we do but we have very optimistic expectations,” Phinma President Ramon del Rosario Jr. told The Manila Times after he was asked on when his firm would see a return on its investment.
“We think it gives us a lot of efficiencies and there is really a strong demand. We are counting on the government’s Build, Build, Build program to go [at] a very aggressive pace,” he said.
His remarks come after Phinma’s cement arm Philcement Corp. inaugurated last month the cement plant and port in Bataan’s Mariveles town.
The facility, which has an annual production capacity of 2 million tons, marked the company’s reentry into the cement market after it stopped for more than two decades because of the Asian financial crisis.
The plant is expected to meet growing cement demand as the local construction industry booms, the company said.
“This will be our main terminal for the time being, but this depends on how the business grows,” del Rosario said, noting that expansion was possible in the future.
Also, the Phinma chief lamented the P10 safeguard duty imposed on cement imports. The firm currently sources cement from Vietnam-based Song Lam Cement Joint Stock Co. after inking a $50-million investment deal last year.
Song Lam is a subsidiary of Vissai Ninh Binh Joint Stock Co., a privately owned cement manufacturer with 37 export channels, including the Philippines.
“It was unfortunate that it (safeguard duty) was imposed because it’s a time when there’s a shortage of cement. But it’s there and we got to live with it for the time being. We’re challenging it, together with other importers, because we think it doesn’t make sense,” del Rosario said.
Phinma shares added 20 centavos or 2.06 percent to end at P9.90 apiece on Tuesday.