Philippines Construction

Reverberations are expected in the Philippine cement industry from the $54bn planned merger of Lafarge and Holcim as the two companies plan to restructure their operations in the Philippines which could unravel an even bigger shake-up of the local industry.

The government in the Philippines is giving a new push to major construction projects awarded under a public-private partnership scheme, putting the building sector on a strong growth path after last year's Typhoon Haiyan wrecked havoc in the southeast Asian country.

Long a key component of the Philippines’ economy, the construction industry is earmarked for strong growth next year, as the country moves to roll out new infrastructure, address its housing shortage, and to begin rebuilding the areas hit hardest by Typhoon Haiyan.

A rising tide of investments in infrastructure development, combined with higher spending by the private sector, is set to drive the robust expansion of the construction sector, and in particular, the cement production segment. However, prices could be pushed up by rising demand as a number of large new infrastructure projects are rolled out.

The Philippines’ construction sector appears set for a busy year, with the state planning to inject billions into the industry. While the government’s infrastructure programme continues to ramp up, the country’s contractors are looking forward to increased public spending after a slower-than-expected 2011.