San Miguel to expand P10-B Davao cement plant’s capacity

Diversified conglomerate San Miguel Corp. (SMC) is eyeing to double the capacity of its P10-billion advanced cement manufacturing facility in Davao.

The expansion of the company’s cement plant’s capacity is aimed at reducing reliance on imports and avoiding delays in delivering critical infrastructure projects in the region.

In a statement on Thursday, SMC president and CEO Ramon Ang said that the company’s cement unit, Southern Concrete Industries Corp., previously Oro Cemento Industries Corp., is eyeing to work immediately on an expansion plan for the new cement grinding plant, which started commissioning activities late 2021. 

Full commercial operations are expected by July 2022.

Ang said that the cement grinding plant, which can produce up to two million metric tons of cement per year, equivalent to some 50 million bags, is designed with a provision to readily expand capacity to 100 million bags.

The facility, which started construction in 2018, uses the latest technology and world-leading brands in cement grinding as well as in pollution abatement.

The facility was recently granted fiscal incentives by the inter-agency Fiscal Incentives Review Board (FIRB), chaired by Finance Secretary Carlos Dominguez III. 

“We are grateful for the support of the government and our communities in Darong, Davao del Sur, who immediately saw the many benefits and advantages of this modern cement facility,” Ang said.

“This plant was built to support infrastructure development and investments in Mindanao--to help sustain economic development, growth of local industries, and the creation of jobs. We will make sure we will hit the ground running when we start operations by July this year,” he added.

The SMC chief said that the company’s focus will be to immediately serve the needs of the Mindanao region and "to fill in supply gaps, especially the demand for local cement."

“Right now there is heavy reliance on imported cement. But our government’s goal is to lessen our dependence on imports, especially since supply, price, or quality issues directly impact, disrupt, or delay critical infrastructure development. That is why we will look right away at doubling the capacity of the plant,” he said.

Apart from the plant, SMC also invested in building its own pier facility, which can receive clinker, gypsum, and limestone.

The pier is also seen to help decongest the Davao commercial port.

“As with any project, we also encountered many challenges in finishing construction of the project during this pandemic. But we never wavered in our goal of completing it as safely and as quickly as possible. This way, by the time our country is in full recovery and build-back-better mode, Mindanao will also be fully ready,” Ang said. — VBL, GMA News