Cement makers suffer vs imports
‘While we advocated for safer and more reliable delivery methods, the influx of low-priced imports prevented us from fully selling and passing on these costs to the market.’
Daily Tribune‘While we advocated for safer and more reliable delivery methods, the influx of low-priced imports prevented us from fully selling and passing on these costs to the market.’
Local cement players are incurring huge losses due to the entry of imported, yet cheaper, cement products from other countries, including Vietnam.
During the second day of the Tariff Commission hearing on the formal probe of imposing a definitive safeguard duty against importations of Ordinary Portland Cement (AHTN 2022 Subheading 2523.29.90) and Blended Cement (AHTN 2022 Subheading 2523.90.00) on Tuesday, representatives from Holcim Philippines, Republic Cement, and Concreat Holdings Philippines presented proof of huge losses from competition with imports.
Counsel for the oppositors, representing cement importers, focused their questioning on excerpts from press releases, company websites, and portions of audited financial statements of local manufacturers to suggest the domestic industry has not suffered material injury or that the surge in imports did not cause any injury.
In particular, the Strategy Manager of Holcim Philippines was asked to confirm whether the company posted a P1-billion profit during the nine months from January to September 2023, to demonstrate the absence of material injury.
Maria Isabel Cleto acknowledged that the company generated profit but she emphasized the importance of examining year-on-year trends and the overall bottom line.
“Our EBIT (Earnings Before Interest and Taxes) also showed a declining trend over the POI (period of investigation) because of the surge of imports affecting our sales volume,” Cleto stated.
Check on financial state
For his part, the President of Republic Cement was asked to confirm whether their production costs had significantly increased from 2022 to 2023, and to attribute the injury to factors other than imports.
However, John Reinier Dizon explained that the rise in production costs during that period was primarily due to the company’s initiative to increase delivered sales, aimed at ensuring the safety of products, adding that the domestic player was unable to recover these additional logistics costs due to price suppression caused by imports.
“While we advocated for safer and more reliable delivery methods, the influx of low-priced imports prevented us from fully selling and passing on these costs to the market,” Dizon stated.
Lastly, Trizia Mistica, industry manager of Concreat Holdings Philippines, was quizzed whether their expansion plans were merely a continuation of previous initiatives, implying that these would have proceeded regardless of import competition.
But Mistica firmly clarified that the company’s current efforts are directly driven by the challenges posed by imports.
“We are undertaking these measures to address our main concern, which is the surge of imported products,” she stressed.
Questions were also raised regarding the industry’s sustainability initiatives, particularly about compliance with Republic Act 11898 or the Extended Producer Responsibility (EPR) Law.
Importers’ counsel attempted to frame these efforts as routine business practices or legal obligations, rather than as part of the industry’s adjustment plan in response to import injury.
CeMAP members clarified that while compliance with the EPR Law is mandatory, the domestic industry has exceeded the requirements.
These initiatives are not merely regulatory responses, but strategic and extraordinary measures aimed at mitigating the impact of import surges.
With this, CeMAP president Dizon stated, “Aside from 100 percent compliance with the EPR Law, domestic players like Republic Cement are going beyond the mandated plastic recovery targets. These efforts are not only about environmental responsibility — they are also cost-reduction strategies necessary to minimize the injurious effects of the import surge.”
Further, the group said they remain committed to presenting a full and accurate picture of the challenges faced by the domestic industry and to advocating for fair competition and the protection of national interest.
“At the end of the day, we are all after the same thing — and that is the truth. We are more than willing to share that truth with everyone,” according to Dizon.
