2014 Annual Cement Industry Report
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1 2014 Annual Cement Industry Report Building Beyond Business A Sustainable Partner in Nation Building Cement Manufacturers Association of the Philippines Inc. (CeMAP)
2 CONTENTS A. Message from the President B. Directory of CeMAP Members CEMEX Philippines Group of Companies Solid Cement Corporation APO Cement Corporation Holcim Philippines, Inc. Lafarge Associated Companies Bulacan Plant Norzagaray Plant Batangas Plant Teresa Plant Lafarge Iligan, Inc./ Lafarge Mindanao, Inc. Northern Cement Corporation Pacific Cement Corporation Taiheiyo Cement Philippines Inc. C. Tables and Figures Figure 1. Total Sales & Imports of Cement ( ) Table 1. Capacity, Production, Sales and Consumption ( ) Figure 2. Total Cement Imports ( ) Figure 3. Total Cement Exports ( ) Figure 4. Gross Value of Construction: Public versus Private ( ) Table 2. Gross Value of Construction ( ) Table 3. Annual Growth Rates of Construction ( ) D The Association Our Vision Our Mission Goals Board of Trustees Committees CeMAP Address, Contact Information, Location Map
3 PRESIDENT S MESSAGE In 2014, the cement demand of 21.3 million tons breached the 20 million ton level which is higher by 8.7% from the demand of 19.6 million tons in From 15.2 million tons in 1997, cement demand fluctuated and was not able to reach the same level for 13 years until After 2010 cement demand is seen to continuously increase at an average of 9.5% per year. A study by Professor Antoniette Rosete of the University of Santo Tomas projected a demand of 26.6 million tons by With government stepping up its public works program, demand is set to grow further. There are also bigger investments in residential, commercial and industrial structures coming from both public and private sectors. Expansion plans are, thus, on the drawing board of many cement manufacturers. The cement manufacturer members of CeMAP continue its stringent monitoring of cement quality to ensure the safety and protection of the general public in the light of increasing cement demand. The cement quality produced by CeMAP members do not only comply with the standards set by Government and that of the American Society for Testing and materials (ASTM) but also surpasses these standards. Every cement plant of CeMAP members undergo monthly testing by the Cement Testing Center or CTC of CeMAP. CTC tests each cement type produced by the plant: three samples from the plant and two samples from the market. CeMAP went one step further to ensure that consumers get good quality cement. The Association provides yearly proficiency testing for cement testing laboratories in the country. This service establishes the capability of testing laboratories to correctly analyze cement quality and be able to issue reliable test certificates on cement quality specifications. The proficiency testing program of CeMAP is now on its sixth year participated in by 33 cement testing laboratories all over the country: 24 from private sector and 9 from government Sustainable Development measures are an integral part of CeMAP member s standard operating procedures. The members continue to provide high quality cement through minimized use of raw material, fuel and water. Cemap was thus adjudged the most outstanding industry association in the optimum use of resources category in the Federation of Philippine Industries (FPI) Manufacturers and Producers Summit held at the Hotel Intercon. Concepts and practices that uphold the best interest of the environment and the local communities are promoted by CeMAP to its members. A major initiative is the use of alternative fuels to minimize use of expensive coal, oil, and electricity. Examples of alternative fuels are rice hulls, wood scrap, refuse derived fuel and fly ash from coming from coal fired power plants. Refuse derived fuel is segregated shredded municipal waste. CeMAP members are able to help municipal government reduce solid waste that they dump in landfills by taking in the municipality s wastes.
4 CeMAP members make use of Alternative Fuels and also Alternative Raw Materials as well or AFR. The procedure is called co-processing. Through this procedure, agricultural and industrial residual waste is used in place of limestone as raw material. The reduced usage of limestone (CaCO3) translates to reduced CO2 emission. With global warming now being experienced worldwide, all CeMAP members are now engaged in co-processing. The end product of co processing is blended cement which is highly endorsed by CeMAP. Besides being good for the environment, an advantage of blended cement is the attainment of higher compressive strength in the long run. Optimized use of electricity and water is promoted by CeMAP among its members. CeMAP members installed waste heat recovery facilities in their cement plants. These facilities convert excess heat in the plant into usable electricity. Through these waste heat recovery facilities, members are able to reduce its use of power from power grids by as much 30%. Through electricity optimization strategies, high efficiencies in the use of electricity are attained by the members. A member reduced its use of electricity by as much as 102 kwh of electricity per ton of cement produced. World average in the electricity consumption of cement plants is more than 110 kwh/ton of cement. Not only is electricity conserved by members, electricity is also shared. A CeMAP member backed up the power capacity of its host municipality by entering into an Ancillary Services Procurement Agreement (ASPA) with the municipality. In the use of water, CeMAP members adopt waste recycling systems to reduce use of water. As much as 100% of the water used in plants are recycled. Recovery of the water is as much as 60%. Reduction in the consumption of water by as much as 81% was also attained during The members also share their expertise with their host and neighboring communities. They enhance local water management by conducting water risk assessments and resource planning to ensure water sustainability. CeMAP members participate actively in supporting the National Greening Program of Government. The cement companies have whole departments with personnel to implement tree planting activities and production of quality seedlings. Employees welfare and well-being are also primary concerns of CeMAP members. A member was cited as the best employer from a Global Human Resource Consultancy using a globally consistent methodology that is based on over 20 years of employee research experience. The following made the cement company stand out as an employer: high employee engagement, a compelling employer brand, effective leadership, and high performance culture. With our major thrust of implementing Sustainable Development practices, CeMAP Members are Building Beyond Business. As such, we are realizing our role as a Sustainable Partner in Nation Building. Signed: ERNESTO M. ORDOÑEZ President
5 B. DIRECTORY OF CEMAP MEMBERS CEMEX Philippines Group of Companies Office Address: 8th Floor, Petron Mega Plaza, Sen. Gil Puyat Ave., Makati City, Philippines Contact Person: Mr. Chito Maniago Director for Corporate Communications and Public Affairs Telephone Nos. : +(63 2) ; Fax Nos.: +(63 2) ; Website: chito.maniago@cemex.com Solid Cement Corporation Plant Location : Antipolo City, Rizal Products Island Portland Cement 1 Rizal Portland Super Rizal Masonry Cement M Palitada King S Its Solid Cement Plant located in Baran- gay San Jose, Antipolo City has received numerous international certifications including ISO 9001:2001, ISO 4001:2004, ISO 18001:2007 and ISO APO Cement Corporation Plant Location : APO Cement Plant Compound, Tina-an, Naga City, Cebu Products APO Portland Cement 1 APO Portland Premium APO Pozzolan P APO Masonry Cement M Palitada King S Its APO Cement Plant in Naga, Cebu has received the International Management System Certification including ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007.
6 Holcim Philippines, Inc. Office Address: 7th Floor, Two World Square, Mckinley Hill, Fort Bonifacio, Taguig City Contact Person: Ma. Socorro Prado Vice President Corporate Communications Telephone No.: Fax No.: Website: Address: masocorro.prado@holcim.com Facilities: La Union Plant Quirino, Bacnotan, La Union Bulacan Plant Matictic, Norzagaray, Bulacan Lugait Plant Lugait, Misamis Oriental Davao Plant Barrio Ilang, Davao City Batangas Cement Terminal Barangay San Rafael, Calaca, Batangas Iloilo Cement Terminal Lapuz Norte, Lapaz, Iloilo City Mabini Cement Grinding Plant Bgy. Pulong Balibaguhan, Mabini, Batangas All Holcim Philippines Inc. cement plants have received the following International Certifications: QMS: ISO 9001:2008, EMS: ISO 14001:2004, & OHSMS: OHSAS 18001:2007
7 Lafarge Associated Companies Office Address: 20th Floor, Salcedo Tower, 169 H. V. Dela Costa Street Salcedo Village, Makati City, Philippines Contact Person: Cirilo M. Pestaño II Vice President Public Affairs Telephone No.: +(63 2) / Fax No.: +(63 2) / Website: cirilo.pestano@ph.lafarge.com Facilities: Lafarge Republic Bulacan Plant Plant Address: Barrio Minuyan, Norzagaray, Bulacan Products: Republic Portland Plus Rapidset 1 Republlic 1(bulk) The Bulacan Plant of Republic, Inc. has received international certifications. QMS: ISO 9001: 2000, EMS: ISO Lafarge Republic Norzagaray Plant Plant Address: Barrio Bigte, Norzagaray, Bulacan Products: Republic Portland Plus Rapidset 1 Republlic 1(bulk) Republic V V Republic Portland Duo Republic Wallmaster N Republic II II The Norzagaray Plant of Republic, Inc. has received international certifications. QMS: ISO 9001: 2000, EMS: ISO 14001: 2004, HSMS: OSHAS 18001: 2007
8 Lafarge Republic Batangas Plant Plant Address: Mapulo, Taysan, Batangas Products Republic Portland Plus Fortune Rapidset 1 Republlic 1(bulk) The Batangas Plant of Republic, Inc. has received international certi OSHAS 18001: 2007 Lafarge Republic Teresa Plant Plant Address: Barangay Dulumbayan, Teresa, Rizal Products: Republic Portland Plus Republic Fortune Republlic 1(bulk The Teresa Plant of Republic, Inc. has received international certifications. QMS: ISO 9001: 2000, EMS: ISO 14001: 2004, HSMS: OSHAS 18001: 2007 Lafarge Iligan, Inc. / Lafarge Mindanao, Inc. Products: Republic Portland Plus Mindanao Pozzolan Premium P Rapidset 1 Republlic 1(bulk) The plant of Republic Iligan, Inc. has received international certifications. QMS: ISO 9001: 2000, EMS 14001: 2004, HSMS: OSHAS 18001:2007
9 Northern Cement Corporation Office Address: 5th Floor, ECJ Condominium, Real corner Arzobispo Streets, Intramuros, Manila City, Philippines Contact Person: Richard Sebastian, Vice-President for Marketing Engr. Emeterio N. Asuncion, Plant Manager Telephone Nos.: +(63 2) ; Fax Nos.: +(63 2) ; Website: Plant Address: Northern Cement Plant, Barrio Labayug, Sison, Pangasinan Products: Northern I Northern Cement Corporation, Pangasinan, has received international certifications ISO 9001:2008, ISO 14001:2004 and ISO 18001:2007 Pacific Cement Philippines, Inc. Office Address: 3rd Floor BMMC Building, 143 Dela Rosa corner Adelantado Sts., Legazpi Village, Makati City 1229, Philippines Contact Person: Jose Ramon V. Cortes, Chairman and CEO Ma. Luisa V. Cortes, Vice Chairman Telephone No.: +(63 2) ; , Fax No.: +(63 2) Website: pacemco@pldtdsl.net dongc@pldtdsl.net, Plant Address: Pacific Cement Plant, Km. 11 Surigao del Norte, Philippines Products: Pacific Extra Super 1 Pacific Pozzolan P Pacific Super Portland Plus Pacific Cement Philippines, Inc., whose plant is located in Surigao City, has an Integrated Man- agement System for Quality and Environment which is certified to ISO 9001:2008 and ISO 14001:2004.
10 Taiheiyo Cement Philippines, Inc. Office Address: 11th Floor Insular Life Cebu Business Centre, Mindanao Avenue cor Biliran Road Cebu Business Park, Cebu City 6000, Philippines Contact Person: Mr. Nilo R. Yap Legal and Corporate Affairs, Division Manager Telephone No.: +(63 32) , Fax No.: +(63 32) Website: Plant Address: Taiheiyo Cement Philippines Inc., South Poblacion, San Fernando, 6018 Cebu Products: Grand Portland 1 Grand Premium Grand Pozzolan P Grand Masonry M Taiheiyo Cement Philippines, Inc.'s plant in San Fernando, Cebu is internationally-certified to ISO 9001:2008 (Quality Management System), ISO 14001:2004 (Environmental Management System) and OHSAS 18001:2007 (Occupational Health and Safety Assessment Series).
11 TABLES AND FIGURES Figure 1. Total Sales and Demand Consumption of Cement (In 000 MT), Table 1. Capacity, Production, Sales, and Consumption of Cement ( 000 MT) Year Kiln Capacity Grinding Capacity Production Total Sales (Local Sales + Exports) Demand (Local Sales + Imports % Change ,847 26,369 13,067 13,090 12, % ,847 26,369 13,057 12,991 12, % ,847 26,369 12,368 12,523 11, % ,847 26,369 12,033 12,195 11, % ,847 26,369 13,048 13,066 13, % ,847 26,369 13,369 14,674 13, % ,547 26,369 14,865 14,666 14, % ,547 25,886 15,900 15,449 15, % ,047 26,911 16,063 15,595 15, % ,047 26,911 18,907 18,356 18, % ,047 28,100 20,150 19,445 19, % ,047 28,100 21,305 21,301 21, %
12 Figure 2. Total Cement Imports, (in 000 Metric Tons Cement Imports in thousand tons Figure 3. Total Cement Exports, (in 000 Metric Tons) 1, ,
13 Table 3 Gross Value of Construction: Public versus Private (in Million Pesos at 2000 Constant Prices) Table 2. Gross Value of Construction ( ) Industry Group Public 16, , , , , , ,843 Private 94, , , , , , ,771 Gross Value 11, , , , , , ,614 Table 3. Annual Growth Rates of Construction ( ) Industry Group Public 18.70% 4.09% % 27.76% 5.86% -5.78% Private -5.15% 24.11% 6.35% 6.73% 10.81% 19.54% Gross Value 1.62% 17.46% -4.15% 11.28% 9.57% 13.45%
14 THE ASSOCIATION Our Vision An organization that is committed to make the cement industry a growing and sustainable partner in nation building, by ensuring that high quality cement is produced. Our Mission Promote the cement industry as: A key partner in contributing to infrastructure development and economic growth; An effective advocate for all members of the Philippine cement industry; A responsive organization in addressing industry-wide issues; A foundation for stronger, more stable relationships among all stakeholders of the Philip- pine cement industry. Goals To make the cement industry a leader in Philippine industry in four areas: 1. World-class and environment-friendly technologies and products; 2. Management Systems; 3. Corporate Social Responsibility; 4. Health and Safety Board of Trustees Chair: President: Treasurer: Corporate Secretary: Board Members: Francisco L. Viray Ernesto M. Ordoñez Veralynn A. Joromo Kenneth S. Ang Albaraccin, Magdaleno Arbis, Maria Allen Asami, Satoshi Lee, Don Mallillin, Robert Palomino, Pedro Pestano, Cirilo Sahagun, Eduardo Sunico, Renato CeMAP Committees Committees Public Policy & Legislative Sustainable Development Product Standards Chairs Sahagun, Eduardo Lee, Don Palomino, Pedro
15 CeMAP Office #1 Corporal Cruz St. corner E. Rodriguez Jr. Avenue Bagong Ilog, Pasig City 1600 Philippines Telefax Nos.: / cementinfo@cemap.org.ph Website:
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