PUERTO Princesa—Publicly listed Holcim Philippines Inc. is calibrating its industry growth projections for the year to only 6 percent to 8 percent due to uncertainties caused by the US sub-prime mess and resulting recession, as well as the continued increase in prices of construction materials. 

Francis Felizardo, Holcim Philippines senior vice president, said the company’s sales growth for the year will most likely be slower than in 2007, when it posted a 15-percent increase. The total cement industry grew by about 10 percent last year.

“We are pegging a conservative growth target this year even if we have yet to feel so far the problems in the US,” Felizardo told the BusinessMirror at the sidelines of the South Luzon Area Business Conference in Puerto Princesa City, where he spoke about sustainable construction over the weekend.

Currently, Felizardo said, demand from the private sector—particularly builders of high-rise edifices in Makati, Fort Bonifacio and Ortigas—is still strong despite the increasing cost of construction materials, particularly steel products. 

With this, Felizardo said the company is continuously introducing new products and innovations to help customers save on cost. He cited ready-mix Holcim concrete, which increases in strength cement and aggregates are properly combined.

“We are pushing up the strength to lessen steel requirements,” Felizardo said.

The company is also ramping up the introduction in the different regions of the country of the Holcim Wallright, a masonry cement used specifically for hollow-block laying, filling and plastering. It has better workability properties, 200-percent more bond strength, and increased water retention compared with general purpose cement.

Felizardo said the company has yet to receive cancellations from contractors of private developments even with the higher construction cost. “But it is always a possibility because the price of steel has really gone up considerably,” he said.

Despite the increasing prices in other commodities, Felizardo said they are trying to absorb the increased production expenses although the cost pressure is there due to the rising fuel and electricity prices. He said fuel and electricity eat up about 80 percent of a cement company’s cost structure.

Holcim is currently the market leader in cement with an 80-percent share. It also exports 20 percent of its yearly production of about 5 million tons to Malaysia, Palau, Africa, among others.

MOBILE-phone users may finally see rates go down. This, as the country’s telecommunications companies recently said they will carefully study proposals from the National Telecommunications Commission’s (NTC), which seek to limit access charges in short message service (SMS) to not more than P0.15 and put a cap of P1.50 per minute for cellular calls.

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TWO of the Lopez-controlled listed companies were among last week’s biggest losers. These were First Philippine Holdings Corp., an index stock and Benpres Holdings Corp.

New York-listed AES Philippines Corp. interested in participating in the bidding for the energy contracts of the National Power Corp. (Napocor) with independent power producers (IPPs).

PUERTO Princesa—Publicly listed Holcim Philippines Inc. is calibrating its industry growth projections for the year to only 6 percent to 8 percent due to uncertainties caused by the US sub-prime mess and resulting recession, as well as the continued increase in prices of construction materials. 

REAL-estate firm Eton Properties Philippines Inc. is looking at developing two more properties in Cebu and Batangas, while still undertaking the construction of 10 existing projects.

IT was indeed a busy week for Government Service Insurance System (GSIS) president and general manager Winston Garcia. There was, of course, the annual stockholders meeting of Manila Electric Co. (Meralco) on Tuesday where the Lopez Group seemingly won Round 1 by retaining the management status quo chaired by Manuel Lopez.