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The cement company anticipates a “softer” industry rebound in 2022.
In light of global economic concerns like rising oil prices and rising commodity prices, a top cement producer anticipates a “softer” recovery for the sector this year.
According to Horia Adrain, president, and chief executive officer of Holcim Philippines, the cement sector would continue to rebound in 2022. However, compared to last year, its speed would be slower.
“We do anticipate that the sector will eventually return to pre-pandemic levels. In 2021, it began to improve, and in 2022, we anticipate that this trend will continue. It would likely be a slow recovery, Adrian said, because of all the price rises for petrol, electricity, and everything else.
Adrian added the escalating oil prices have “awful” consequences on the operation of the company and have been increasing since the Russian invasion of Ukraine began in February.
The impact of rising oil prices on the running costs of the cement business was described by the executive as “a substantial cost rise, sometimes even double.”
Adrian claimed that Holcim’s support for the circular economy, which involves utilizing leftover materials and other trash as an alternative fuel, had improved the efficiency of the business.
Circularity has assisted us in increasing the effectiveness of our operations and in reducing some of these costs, he claimed.
Adrian listed factors for the cement industry’s expansion, including the government’s determination to continue the “Build, Build, Build” infrastructure initiative of the Duterte administration, despite the difficult business environment.
Therefore, he predicted that there will be infrastructure developments in Metro Manila, including the construction of highways, bridges, tunnels, schools, and hospitals.
In the second half of the year, he continued, private consumption is also anticipated to increase, supporting the expansion of the economy.