Philippines' Aboitiz to boost cement output
Conglomerate anticipates demand from country's infrastructure push
JUN ENDO, Nikkei staff writer
MANILA -- Aboitiz Equity Ventures said Monday it will spend roughly $300 million to increase annual cement production by 14% to 8 million tons, aiming to meet an expected rise in demand from government plans to step up infrastructure construction.
The Philippine conglomerate -- whose operations span electricity, finance, food, infrastructure and real estate -- runs its cement business through a partnership with Irish building materials maker CRH. The business operates six production bases throughout the Philippines. Aboitiz Equity laid out plans to expand capacity over the next three to five years after a shareholders meeting Monday.
The government's drive under President Rodrigo Duterte to build roads and other infrastructure nationwide is expected to provide a tailwind to related industries such as materials and construction. Aboitiz Equity CEO Erramon Aboitiz sees infrastructure and housing booms lifting cement demand.