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| Cement makers welcome imports
By Elaine Ruzul S. Ramos The Cement Manufacturers Association of the Philippines said it is not concerned over government’s call to contractors to import much cheaper cement given the high cost of the commodity in the domestic market. Ernesto Ordoñez, president of the association, said importation of cement had long been an option for local contractors but most of them had chosen to buy from local producers instead. “Beyond price, contractors are also looking at after-sales support, on-time delivery, availability and quality,” he said. He said transactions between cement companies and contractors were business-to-business while purchase decisions were based on several factors. These factors include the price (discounts available for bulk orders), availability and proximity to project sites, technical support, on-time delivery to save on costs and compliance to quality products. Ordoñez cited the business risk in importing cement. “There is the issue on the quality of imported cement. The quality may be high but contractors do not want to take the risk,” he said. The industry said project owners would reject faulty structures and demand the contractor to redo work at his expense or face collection problems. “Cement accounts for 8 percent of building cost and 20 percent of road-building cost. So why should contractors take the risk of redoing the structure just because of the 8 or 20 percent component of the entire cost?” Ordoñez asked. |
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