Megawide allots P1 billion for pre-cast concrete manufacturing plant

MANILA, Philippines - Capitalizing on a resurgent property market, fast-growing builder Megawide Construction Corp. is spending over P1 billion for a world-class pre-cast concrete manufacturing facility that aims to cut costs by 40 percent and double its production capacity.

Megawide, which boasts of using the most-advanced, state-of-the-art-facility from Europe, is the developer of around 70 percent of the residential condominium projects of the Sy family’s SM Development Corp.

Founded in 1997, Megawide grew from a start-up capital of P500,000 into a billion-peso-revenue construction firm through the vision and commitment of young and highly-trained civil engineers Michael Cosiquien and Edgar Saavedra.

Cosiquien, chairman and chief executive of Megawide, said the plant, which will rise on a 10-hectare lot in Tanay, Rizal, is expected to become the country’s only one-stop pre-cast concrete building systems manufacturer that will serve the undertapped socialized housing with high quality development. The facility will break ground next year and is targeted for completion in the third quarter of the same year.

He said the company hopes to help plug the huge housing backlog in the country, which currently stands at four million units, valued at P2 trillion based on a selling price of P500,000 each unit.

In its first year of operations, the plant is targeting to construct 30,000 mass housing units, said Saavedra, president and chief operating officer of Megawide. In 10 years, the company is aiming to construct one million homes.

Megawide, a trendsetter in the construction industry, intends to fund the construction of the plant through internally-generated cash and borrowings, Saavedra said, as he pointed out that earlier plans to undertake an initial public offering of shares would temporarily take a backseat.

Saavedra said the company is well-positioned for growth with plans to venture into engineering projects such as complex building parts, bridges, dams, airports and other construction monuments.

“With projects seeing no let-up, contracts are growing at a seemingly exponential rate so a major investment of this kind is only but prudent to meet the growing needs of the market which we cater to. As recovery both in the local and international market continues to gain steam, we strongly feel the need to seize this golden opportunity to cater to the needs of the unfolding recovery by expanding our operations and local footprint,” Cosiquien said.

From only P241 million in 2007, Megawide’s revenues surged to P1 billion the following year and doubled it in 2009. For this year, the company is eyeing P4 billion in revenues or double that of last year.

Net earnings are forecast to rise five-fold this year, the same growth as last year.

Megawide boasts an extensive construction portfolio that includes approximately 48 low-rise to high-rise condominiums and industrial buildings. To date, It has booked construction contracts worth P 20.66 billion.

Aside from the SM Group, its solid clientele base includes Belle Corp., Antel Group, Suyen Corp. (owner of Bench), Prince Jun Development Group, Bellevue Hotel Group, Keppelland Realty, Malate Bayview Development Group, Goldland Properties and Dynamic Realty.

Ongoing projects include Antel Spa Residences in Makati, City Square Residences near Abad Santos, the 45-story Malate Bayview Mansion, the 23-story Bench corporate tower in Bonifacio Global City, and the Bellevue Hotel.

According to Cosiquien, Megawide utilizes the most advanced formwork system in the world similar to the systems used in the construction of Burj Dubai, the tallest tower in the world. It also utilizes the Doka and Meva formwork systems, the top formwork suppliers from Germany, to ensure fastest possible time of delivery of its projects without sacrificing the quality of its works.