Sumitomo Osaka Cement announced on September 17 that it would inject 15% into Philcement in the Philippines. This is a key piece of the company's Southeast Asian footprint, which is intended to lock in the Philippines' ballooning demand for cement directly as its growth engine. The
population of the Philippines has exceeded 110 million and is still growing rapidly. Infrastructure, housing and commercial properties have blossomed on three sides, and the annual demand growth rate of cement is among the highest in Asia. Phil Cement has 10% of the local market share, integrates manufacturing, sales and import, and has good channel depth and capacity flexibility. Sumitomo Osaka Cement has felt the order gap in just a few months since it restarted exports to the Philippines at the end of 2023, so it decided to upgrade from "supplier" to "shareholder" to ensure priority capacity and long-term price advantage with capital ties. After
this investment, Sumitomo Osaka Cement will introduce the energy-saving clinker, low-calcium formula and carbon capture by-product technology that Japan has been cultivating for many years, and assist Phil Cement to build a zero-coal demonstration line with an annual output of 2 million tons in Luzon, which is expected to be put into operation in 2026. For Phil Cement, the new workshop not only makes up for the shortcomings of high-end products, but also uses Japanese technology to reduce carbon emission intensity by 30% at one time, clearing green barriers for exports to Europe and the United States ahead of time. In
Japan, on the other hand, cement demand in 2024 has fallen to 32.7 million tons, six consecutive declines and no signs of bottoming out. The triple pressures of population reduction, public works downsizing and high building materials prices have made "reduction management" the main theme of the industry. Sumitomo Osaka Cement chose to go to sea in reverse at this moment, not only to convert excess clinker into overseas equity returns, but also to export technology in exchange for emerging market growth dividends, laying the "second growth curve" ahead of the local recession.
Sumitomo Osaka Cement Co., Ltd. (Sumitomo Osaka Cement Co., Ltd., SOC) is an integrated building materials enterprise with a long history in Japan, mainly engaged in the manufacture of cement and the development and sale of related materials. The company, which belongs to Sumitomo Group, occupies an important position in Japan's cement industry and ranks third in domestic cement sales (after Pacific Cement and UBE Mitsubishi Cement).