DTI affirms cement industry backing

The Department of Trade and Industry (DTI) maintained support for the continued imposition of the safeguard that protects local cement manufacturers from imported cement products dumping.

“We are in support of the imposition. I am personally in touch with the industry. Not just cement but all the industries, we are supporting them. The President specifically told me to pay attention to it,” said Trade Secretary Cristina Roque.

She said safeguarding the cement industry would mean protecting the small and medium enterprises (MSMEs) in the industry.

“The safeguard measure is for MSMEs not to suffer. The local players play a pivotal role in the economy. Malaki ang economic benefits if they can supply all the local construction, from small houses to big buildings. But we can talk to them (Tariff Commission),” Roque said.

Proof of injury

During the first day of hearing on the formal probe of imposing a definitive safeguard duty against importations of Ordinary Portland Cement (AHTN 2022 Subheading No. 2523.29.90) and Blended Cement (AHTN 2022 Subheading 2523.90.00 on Monday, CeMAP presented strong and compelling evidence showing that the surge in imports during the period of investigation caused material injury to the local industry.

According to the Staff Report of the Tariff Commission, cement imports grew at a cumulative aggregate rate of 8 percent during the period of investigation, confirming the significant and sustained increase in import volumes.

During the hearing, CeMAP officers and members underscored the urgency of the matter due to the continuing decline in sales volume, revenue, operating profit, and employment, among others, caused by the surge in imports.

Further, CeMap officials reiterated that the cement manufacturing industry is a highly strategic sector in the Philippines, with one of the highest employment multipliers, also a key partner in achieving the government’s sustainability and infrastructure goals.

CeMAP emphasized that the local industry has more than enough capacity to meet national demand.

“Total installed capacity now stands at 51 million metric tons, following new capacity additions by both CeMAP and non-CeMAP members over the past two years. Notably, Solid Cement Corporation invested in an additional 1.5 million metric tons of capacity and recently commissioned. Meanwhile, Taiheiyo Cement with its new line increased its capacity by 3 million metric tons per annum,” Ray Baja, CeMap executive director, said.

Despite these expansions, capacity utilization is currently only at 53 percent, indicating significant underuse of local production capabilities.

“This low capacity utilization is allegedly caused by the influx of imports, according to the CeMAP official.”