Republic Cement Services Inc. announced on Wednesday its plans to commission finish mills this year, estimated to cost the company some $20 million each.
In an interview with reporters in Taguig City, Republic President Nabil Francis said the company plans to expand its operations with two more finish mills to be commissioned before the end of the year.
"Republic Cement is also increasing its output and many of those new equipment will be commissioned no later than this year," he said.
"This year we will increase our grinding capacity and at the end of this year, we will commission two new finish mills which will somehow give an output of a bit more 50 million bags," added Francis.
A finish mill is a facility used to grind clinker before it turns into the powder known as cement.
"At the end of this year the total capacity will be hovering at 9 million (metric tons)," said Francis.
According to Francis, the average price of a finish mill is currently pegged at $20 million, depending on its capacity.
"In some cases it's more, in some cases it's a bit less, depending on the characteristics," he explained.
"Our investment is basically having two targets -- increased finish mill outputs, and then we need clinker," he added.
Francis said there is sufficient supply of clinker, the raw material of cement, in the Philippines given the rich resources of the country, but the country is open to import if the local supply is insufficient.
"The vast majority of our clinker is produced locally and in case we need more, we import it. Today, the supply in clinker can be in Vietnam, can be in Thailand, can be in Korea," he explained. —LDF, GMA News