Local industry supports DTI probe into cement importation

Local cement makers have expressed their support for the Department of Trade and Industry’s (DTI) initiative to review the rise in cement importation to determine whether it has an adverse impact on the domestic industry.

In a statement, the Cement Manufacturers Association of the Philippines (CeMAP) and Eagle Cement Corporation said they both submitted position papers backing Acting Trade Secretary Cristina Roque’s launching of a preliminary safeguard measures investigation to determine the impact of increased importation of cements in recent years on the local cement manufacturing sector.

CeMAP and Eagle Cement said the probe is a “critical step that underscores the government’s commitment to ensuring fair competition and protecting the local cement industry from undue harm caused by excessive imports.”

CeMAP submitted its position paper to the DTI on November 12, while Eagle Cement Corporation followed with its official letter of support.

The Federation of Philippine Industries earlier expressed its support for the DTI probe, recognizing the urgent need to safeguard the domestic cement sector.

Roque issued a notice, pursuant to Section 6 of Republic Act 8800, or the Safeguard Measures Act, directing a preliminary investigation that will cover the importation of cement from the years 2019 to 2024.

Several factors—including the rise in cement imports by 10% in 2020, 17% in 2021, and 5% in 2023—triggered the investigation. The share of cement imports also increased from 30% in 2019 to 47% in 2023 and 51% in January to June 2024.

The Trade Department also took note of the domestic cement industry’s sales decline from P79 billion in 2019 to P64 billion in 2023.

CeMAP and Eagle Cement, meanwhile, said that data from the Bureau of Customs showed that cement imports reached 6.2 million tons from January to October 2024, up 5% year-on-year, “with October alone registering a record-high 870,000 tons.”

“The majority of imports (94%) come from Vietnam, with smaller portions from Japan (5%) and Indonesia (1%),” they said.

CeMAP and Eagle Cement said that despite the Philippine cement industry’s ample capacity of 50 million tons annually—sufficient to meet local demand estimated at 34 million tons—“the influx of imported cement has caused substantial harm to domestic manufacturers.”

“The implementation of safeguard measures is vital to mitigating these adverse impacts and preserving the competitiveness of local producers,” they said.

“The industry, together with its stakeholders, remains steadfast in its commitment to supporting government efforts to foster fair trade practices, promote local manufacturing in a sustainable manner, create jobs, and strengthen the national economy.'' — VBL, GMA Integrated News