The Market Monitor Minding the Nation's Business
Fiber-cement technology leader James Hardie Philippines recently signed an EPC (engineering, procurement and construction) contract with JGC Philippines Inc. for the James Hardie Line 2 Project that will expand its manufacturing plant in Cabuyao town, Laguna province.
Given the growing demand in housing and other infrastructures, the planned plant expansion serves as one of James Hardie’s efforts to meet local demands and fulfill its promise of providing Filipinos durable and livable homes built without compromise.
During the contract-signing, Mark Sergio, country manager of James Hardie Philippines, and Antonio Cabrera, president of JGC Philippines, said the construction industry in the Philippines is really booming. The significant increase in government spending for infrastructure, which now covers 5 percent of the country’s gross domestic product from 3.1 percent in 2014, contributes in the significant growth of the construction industry.
However, with the rise in demand and an over 5.5-million housing backlog recorded last year, the need to catch up is obvious.
Considering the increase in housing demands, and with Filipinos today shifting their focus from just renting a house to owning one—a house designed using green and sustainable architecture, built with quality materials, and that promotes better living—James Hardie’s decision to expand now comes at a very opportune time.
“One of the things that I am excited about in terms of how we’re doing our expansion in the Philippines is that not only are we adding jobs, [but] also enhancing jobs. Building that line will enable us to triple our current business. As we go into that space, there will be a lot of opportunities not just to add jobs, but also to improve the quality of work,” Sergio said.
He also said that, although James Hardie’s business growth has doubled from four years ago, the company still believes that it can always do better. It is always looking for ways to improve their business and provide their buyers a good and consistent customer experience.
With 20 years in the business, James Hardie has always made it a point to manufacture and deliver the best building products to Filipinos. Now that it’s close to maximizing its manufacturing capacity, it has decided to expand, which is expected to open doors to more employees, improved sales and manufacturing capacity, and financial and operational growth.
Sergio also acknowledged James Hardie’s continuous effort to giving value back to the environment, the economy and the families that it is working with. This is also the reason James Hardie partnered with JGC Philippines for the project. Both companies have a proven track record and shares similar principles and core values.
“At James Hardie, our core values are smart, driven and real. We want to make sure that we work with partners that reflect the same values,” Sergio said.
“JGC Philippines not only reflect the same values that we have, but also have worked with a lot of reputable companies whose priorities are the same as ours. These priorities include safety, quality of work and on time and on budget delivery. We are confident and pleased that we have found the right partner in JGC to do the job for us,” he added.