Eagle Cement expands deal with construction giant EEI
MANILA, Philippines – Eagle Cement Corporation and Yuchengco-led construction firm EEI Corporation agreed to expand their cement supply partnership agreement in anticipation of increased construction activity because of the government's massive infrastructure program.
Ramon Ang-owned Eagle Cement said in a statement on Monday, September 11, that the new deal is set to strengthen the two companies' existing partnership, as it expands the EEI projects that will be supplied by the cement firm.
EEI vice president and chief procurement officer Edwin Constantino said his company needs a supplier like Eagle Cement that can meet their standards in terms of quality and quantity.
With the pipeline of projects of EEI, Constantino said they believe Eagle's soon-to-be-expanded capacity would be a valuable asset. (READ: Eagle Cement aims to be market leader by 2020)
"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," Constantino said.
Eagle is exclusively supplying two landmark EEI projects: the P37.4-billion Metro Manila Skyway Stage 3 Project and the P62.7-billion Metro Rail Transit Line 7 (MRT7) Project. These deals were bagged by San Miguel Corporation – another Ang-led company.
The strategic alliance comes amid the government's aggressive P8-trillion Build, Build, Build infrastructure program, as well as the increased construction activity spurred by projects from conglomerates and property developers.
Citing construction statistics from approved building permits released by the Philippine Statistics Authority for the 1st quarter of 2017, Eagle Cement said there was a 7.1% increase year-on-year in the total number of permits.
The data also showed that residential and non-residential projects grew by 2.1% and 28.1%, respectively.
To meet the expected increase in demand, Eagle Cement is set to expand its capacity with the completion of its 3rd production line in Bulacan by early 2018. This will increase the company's cement capacity to 7.1 million metric tons.
It is also set to begin the construction of its 2nd cement facility located in Cebu before the end of 2017.
Founded in 1995 and starting commercial operations in 2010, Eagle Cement operates the newest and single largest cement manufacturing plant in the Philippines. – Rappler.com