Wednesday, 28 May 2025, 11:33 pm

Concreat eyes turnaround amid industry headwinds with expansion and DMCI synergy

Concreat Holdings Philippines Inc., formerly Cemex Holdings Philippines Inc., is aiming to reverse its fortunes over the next three years despite ongoing challenges in the cement industry. Speaking at the company’s first stockholders’ meeting under new parent firm DMCI Holdings Inc., Concreat president and CEO Herbert M. Consunji emphasized a medium-term recovery outlook, backed by government infrastructure spending and a growing housing backlog projected to hit 10 million units by 2028.

Consunji highlighted a range of operational and strategic reforms introduced since the change in management. Notably, the company ramped up its production capacity by 26 percent to 7.2 million tons annually with the opening of a new 1.5 million-ton cement line. It also launched ordinary Portland cement to target large-scale construction projects.

Despite a difficult 2024—characterized by weak demand, an 8 percent drop in average prices, and flat sales volumes at 4 million tons—Concreat has taken decisive steps to improve cost efficiency. These include reducing reliance on imported fuel by sourcing coal locally from DMCI’s Semirara Island operations and utilizing fly ash from the Calaca power plant to enhance cement output.

Concreat is also leveraging DMCI’s nationwide footprint to bolster distribution in Visayas and Mindanao, while securing internal demand by supplying DMCI Group’s infrastructure and housing projects. Consunji acknowledged that the transformation will take time but affirmed the company’s commitment to sustainable growth, saying, “We are confident that the steps we are taking today are steering Concreat towards strength, efficiency, and long-term competitiveness.”

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