Japanese company, Taiheiyo Cement Corporation announced last August 8, 2023 that it will establish a new cement distribution terminal in Batangas through its local subsidiary Taiheiyo Cement Philippines, Inc. (TCPI).
Taiheiyo Cement was founded in Japan in 1881 and now has consolidated net sales of JPY 809.5 billion and 1,841 employees. In the Philippines, TCPI is headquartered in Cebu and is targeting an annual sales volume of 5 million tons and a sales share of 10% in 2030s.
The company participated in a ceremony where President R. Marcos Jr. witnessed the signing of business agreements during his official visit to Tokyo, Japan in February 2023. In their agreement, Taiheiyo expressed its intention to expand operations in the Philippines, with the Department of Trade and Industry (DTI) represented by Secretary Fred Pascual.
The expansion interest declared included the construction of a new cement distribution terminal in Calaca, Batangas. This terminal, with a total investment of approximately JPY 10 billion, will supply 700,000 tons of cement annually to Luzon, the largest cement consumption area in the Philippines.
Aside from this, TCPI conveyed its interest to upgrade its main facility in San Fernando, Cebu, via a Kiln Renewal Plant designed to increase current production capacity to 3 million tons per year while also reducing CO2 emissions intensity from energy use by 10%. The company is also planning the reinforcement of the port area of their San Fernando plant. Taiheiyo’s investments under the LOI are expected to generate 2,000 new jobs.
Special Trade Representative (STR) Dita Angara-Mathay, commercial counselor of the Philippine Trade and Investment Center (PTIC) in Tokyo, stated that Taiheiyo Cement “has a good track record in keeping their avowed commitment to pour resources, capital, advanced technologies, and materials that support the infrastructure development programs of the country.
“The company’s latest announcement materializes their plans to expand to Luzon from their long-time base in the Visayan region,” she added.
Taiheiyo’s strategy is also in line with the goals of the “Build, Better, More” infrastructure program. In a speech last May, President Marcos Jr. stated, “As we ramp up annual public infrastructure spending to 6% of GDP consistent with the ‘Build, Better, More’ program, we will incorporate the elements of sustainability, climate resilience and disaster proofing in all phases of societal and infrastructural planning, design, construction up to operation and maintenance”.
Meanwhile, Secretary Fred Pascual said, “The DTI will continue to work towards a vibrant and globally competitive construction industry that is committed to building with integrity.”
The Philippine Construction Industry Roadmap envisions Php 130 trillion worth of business to be generated between 2020 and 2030 through the revitalization of the DTI Construction Industry Authority of the Philippines (CIAP) and the implementation of its 7+1 Action Plans that were developed with industry stakeholders through constant dialogue and engagement.