APO Cement to close Davao terminal, suspend operations of Cebu kiln

APO Cement Corp. on Wednesday announced the closure of its Davao cement terminal and the indefinite suspension of one its kilns in Cebu following the increase in production costs.

"Today, APO Cement announced that it will be closing down its Davao cement terminal and indefinitely suspending the operation of one of its two kilns in Cebu," it said in an emailed statement.

According to APO, the kiln is said to be the "heart" of the cement manufacturing process and is the main equipment used to produce clinker — a primary component in making cement.

Meanwhile, the Davao terminal holds and dispatches 25,000 bags daily, citing the increasing production costs of the company.

"It is regrettable that these difficult decisions had to be made, but APO Cement needs to take remedial measures to reduce the adverse impact of the current situation in this period of uncertainty brought about by the disruption in APO Cement’s source of raw materials and to pursue the best interest of the organization’s various stakeholders," the company said.

APO earlier this week announced it will increase cement prices by P10 per bag, following the suspension of quarrying operations in Naga City, Cebu.

Quarrying operations of APO Land & Quarry Corp. (ALQC), one of the principal suppliers of APO Cement, was suspended earlier this year following the landslide that struck Cebu on September 20.

The operations of the company in Naga City have since been suspended for over two months, prompting the company to raise concerns over the continuing absence of clarity on the government's plans.

"As much as the company commits to support the government’s massive infrastructure program, APO Cement has no choice but to also indefinitely suspend the operation of one of its kilns in Cebu," the company said.

In the same statement, APO maintained that the landslide in Cebu was due to natural causes, citing experts from the Department of Environment and Natural Resources (DENR), and private geology experts overseas.—Jon Viktor Cabuenas/ LDF, GMA News