RAMON ANG-LED Eagle Cement Corp. said it sealed a partnership deal to supply EEI Corp., the construction firm of the Yuchengco family, with its cement needs.
The new deal is set to strengthen the existing partnership of the firms as it expands the EEI projects that will be supplied by Eagle, the companies said.
“EEI is among the biggest players in the infrastructure industry and their confidence in Eagle, as exemplified by this partnership, is testament to the quality of our products and service,” said Manny Teng, Eagle Cement COO and general manager.
Eagle Cement is exclusively supplying two landmark EEI projects—the P37.4-billion Metro Manila Skyway Stage 3 Project and the P62.7-billion Manila Metro Rail Transit Line 7 Project.
These projects, however, are owned by conglomerate San Miguel Corp., where Ang is also its president and COO.
“With the excellent experience we’ve had with Eagle Cement, along with the expansion of their capacity, they will be able to provide companies like us with cement that matches the scale and requirements of our projects,” said Edwin Constantino, EEI vice president and chief procurement officer. “Eagle Cement’s [products] meet the required strength that we need to be able to build our projects successfully.”
Eagle Cement’s capacity is set to expand with the completion of its third production line in Bulacan by early-2018.
The new line will bring Eagle’s capacity up to 7.1 million metric tons per year.
The additional capacity will help provide the greater demand for cement in the country, which will come from the lined-up infrastructure initiatives of the government, as well as projects from private firms.
Eagle Cement said it managed to post an increase in its profits during the first half of the year to P2.2 billion, some 13-percent increase from last year, despite stiff industry competition that pull down prices.
Net sales reached P7.5 billion, an increase of 12 percent, from P6.7 billion last year, mainly due to the increase in the sales volume of both bagged and bulk cement.