Cement manufacturer Concreat Holdings Philippines Inc. (CHP) has set up a plan to turn around the company in the next three years by increasing production capacity, expanding product portfolio and cutting costs.
“Turning around a company takes time, discipline and consistency. But we are confident that the steps we are taking today are steering CHP toward strength, efficiency and long-term competitiveness,” CHP president Herbert Consunji said during the company’s annual stockholders meeting.
The Consunji group took over the CHP in December.
Since taking over the management of CHP, one of the recent steps undertaken by company is the completion of new 1.5-million-ton production line in Rizal.
The new production line will boost the group’s total annual capacity by 26 percent to 7.2 million tons.
CHP has also reintroduced Ordinary Portland Cement to expand its offerings and large construction projects across the country.
The company also began using alternative fuels to improve both sustainability and cost-efficiency.
To reduce costs, Consunji said CHP now uses more Semirara coal from within the group instead of relying on imported coal. Waste from the Calaca power plants is also being reused in cement production.
“We have reduced our reliance on imported fuel — and minimized foreign exchange exposure — by shifting to greater use of locally sourced Semirara coal,” he said.
CHP is also growing its presence in Visayas and Mindanao and expanding its reach by working with DMCI’s distribution network.
Consunji said that while domestic demand remains weak, he expects demand to recover over the medium term period as the government ramps up its infrastructure spending.
“Infrastructure continues to be a government priority, backed by spending commitments of at least 5 percent of GDP. Cement consumption per capita in the Philippines remains well below regional benchmarks, suggesting strong room for growth. And the projected housing backlog, expected to reach 10 million units by 2028, presents significant upside for the industry,” Consunji said.
CHP is currently supplying the cement requirements of housing and infrastructure projects of the Consunji group.
