MANILA, Philippines - Local cement company Eagle Cement will finally start production in January after a pair of destructive typhoons in late 2009 pushed back its timetable for a year, the Board of Investments (BOI) said.
“Eagle Cement has requested for the amendment of the timetable. It was supposed to be December 2009 but because of Typhoons Ondoy and Pepeng they asked for a one-year postponement,” BOI executive director Lucita P. Reyes said in an interview.
The government has been pushing for the commercial operations of Eagle Cement as it is expected to provide cheaper products than the other cement brands in the market today.
Since Eagle Cement will receive income tax holidays (ITH), the firm, in exchange, agrees not to raise their prices without the approval of the BOI.
“They have already filed for a price increase in cement but the Board has not approved it yet,” Reyes said. Cement currently averages at P210 per bag.
The Department of Trade and Industry (DTI) also said they are waiting for the Filipino-owned cement firm to start commercial operations so that they can be able to determine if cement in the country is overpriced.
In an interview, Trade Undersecretary Zenaida C. Maglaya conceded that cement prices in the Philippines is the second highest in Asia. Although they have repeatedly asked the existing firms to provide them with their costing in order to determine if the current market price is correct, Maglaya said the companies have not given them complete data.
“We are waiting for Eagle Cement because we will make them our benchmark,” Maglaya said. Because Eagle Cement is a BOI-registered firm, Eagle must submit their costing to the department.”
Eagle Cement is a wholly Filipino owned, newly set-up manufacturer and distributor based in Akle, San Ildefonso, Bulacan. Plant construction started in March last year, with the project targeting to service areas north of Manila, along with the provinces of Nueva Ecija and Nueva Vizcaya.
Earlier, the DTI said they are considering filing profiteering charges against cement manufacturers after a BOI showed that cement prices in the Philippines is the second highest in Asia.
“President Aquino said we should go after the cartel and protect the consumers,” Maglaya said.