Cemex Holdings Philippines said it will no longer push the plan to close down its cement plant in Davao and temporarily lay off workers.
Cemex Philippines said in a disclosure to the stock exchange Apo Cement Corp., its main operating subsidiary in Cebu, resumed operations of the two kilns.
The cement firm said it would also cancel the planned closure of its cement plant in Davao and the implementation of the temporary lay-off of regular and contractual employees.
The company said it made the decision to resume the Davao cement plant operations as it continued to cooperate with Apo Land & Quarry Corp., which is the company’s principal raw material provider, and the national and local authorities to address the situation in Naga City, Cebu.
Cemex Philippines announced plans on Nov. 21 to shut one of its two kilns in Cebu and close down Davao cement plant after Apo Land was ordered to stop operations by the local government of Naga City following the landslide that occurred on the site in September.
Cemex Holdings said with Apo Cement not being able to source its raw materials from Apo Land, the company incurred considerable costs from sourcing raw materials from different regions in the country.
The cement firm said it planned to temporarily lay-off 30 percent of its regular employees and 38 percent of its contractual workers.
The Davao terminal holds and dispatches 25,000 bags of cement on a daily basis.
Cemex Philippines earlier reported a consolidated net loss of P70 million in the third quarter, a reversal of the P202-million net income in the same period in 2017.
Third-quarter sales rose 8 percent to P6 billion from P5.5 billion in 2017, as volume increased 5 percent.
The company is also currently building a 1.5-million-metric-ton cement plant in Antipolo, Rizal.
The planned cement expansion, which is estimated to cost $235 million, is slated for completion by 2020.
The project is expected boost Cemex’s total capacity in the country by 26 percent.
