Solid Cement continues manufacturing operations

Solid Cement Corp. (SCC) has decided not to shutdown its manufacturing operations at its Antipolo, Rizal plant following the Department of Trade and Industry’s (DTI) decision to partially lift its preliminary "Cease and Desist Order" against the cement firm.

SCC estimates that it lost around P270 million for the 28 days it could not sell its Island Cement brand.

The DTI decided to lift the CDO against SCC based on preliminary results of the seven-day test on SCC’s cement samples.

However, the DTI is still awaiting results of the 28-day test, but SCC is optimistic that it will also pass those tests.

But this situation is creating some confusion as to what batches of cement the firm can sell, industry sources said.

The DTI, in its order, specifically commanded SCC "not to dispose and/or distribute Portland (Island) cement products located at the warehouse (palletizer) and at the Roto-Packer 3/silo until further order from the Adjudication Officer."

SCC had been on the verge of shutting down its operations Wednesday night after notifying the Department of Labor and Employment (DOLE) Wednesday afternoon of its plan to close its Antipolo plant for at least six months.

Paul Victor Aquino, marketing director of Cemex Philippines which controls SCC, said that the DTI order was received only at 11.15 a.m yesterday although they had received the results of the tests Wednesday afternoon.

With the partial lifting of the CDO, SCC, Aquino said, would now be able to move out its cement stock which has been piling up in its warehouse since Aug. 12.

Precisely because of the inventory build-up, the SCC warned that it would soon have to stop production because it is running out of warehouse space to store the cement.

The testing, Aquino explained, was crucial in determining if SCC could continue operating.

SCC roughly estimates that it lost around P270 million for the 28 days that it was not able to sell its cement production.

SCC reportedly produces an average of 75,000 bags a day and at P130 a bag, earns around P9.7 million a day.