Cement maker poised to raise prices to 2010 levels

Though cautiously optimistic about the commitment of the Aquino administration to boost infrastructure spending, local cement manufacturer, Holcim Philippines, revealed Friday that it will raise its prices and revert them to 2010 levels,   “To ensure profitability levels that would enable us to make further significant investments to supply the market, cement prices will unavoidably have to be adjusted. For a sustainable operation, we need to return to 2010 price levels and recover the cost increases of 2011 and 2012,” Holcim Chief Operating Officer Roland van Wijnen said in a statement.   Van Wijnen said Holcim 2011 sales “dipped by almost 9% to P21.62 billion.”   “At the same time, given a continuous rise in prices for coal and electricity, which are the largest cost components in cement production, the energy costs per ton rose by 14%.”   Despite these factors, Holcim managed to eke out a profit of P2.03 billion by managing costs and implementing “various initiatives that have helped us improve operational efficiencies.”   He noted the improved performance of the Ready Mix Concrete and Geocyle units of Holcim. “Geocycle enjoyed a record year, as Holcim stepped up the usage of alternative fuels and raw materials to reduce the company’s dependence on coal.”   “Holcim's ready-mix concrete business registered a jump in volumes as it continued to gain the trust of its customers, especially premiere developers and contractors,” he said. — ELR, GMA News