Forbes Philippines|July 2016

Tita P. Villanueva, vice president and comptroller of pipe maker Crown Asia Chemicals, sees pipes, speaks pipes and dreams pipes. She gushes whenever she sees buildings being built.

“More buildings mean more wires and more wires mean more pipes. As the construction industry grows, it will use more wires, which will go through our pipes!”

Crown Asia Chemicals, which listed on the Philippine Stock Exchange in April last year, is the only listed pipe maker in the country. It reported sterling results in its maiden financial year as a public company.

Net profit rose by 53.2% to Php100.1 million in 2015 from Php65.4 million in 2014 while revenue rose 26.6% to Php1.1 billion from Php850.7 million in 2014.

Sales rose with the introduction of new production lines. Crown Asia is the only local manufacturer of a complete line of polypropylene random (PPR) pipes and fittings. Another new product is its high density polyethylene (HDPE) pipes. It is casting its vote – with these pipes – that it is worth investing in local manufacturing again.

PPR is a type of thermoplastic polyolefin that can be processed into pipes and fittings. PPR pipes are gaining popularity in the market as an alternative to galvanized iron (GI) pipes for buildings and homes, as these pipes can withstand water pressure as well as hot and cold temperatures. HDPE is a polyethylene thermoplastic made from petroleum that is used in gas pipelines and sewer and water applications.

Slower growth in China and rising costs are changing the dynamics in the region as those who have relocated their manufacturing there for cheap land and labor are recounting the costs. Similarly, those who have suspended new investments are now – like Crown Asia – positioning themselves with new product lines to meet anticipated demand.

Crown Asia’s investments in new production lines point to an apparent revival in manufacturing as the domestic market grows big enough to support the local production of previously imported products. Manufacturing output rose by an average of 7.6% per year between 2010 and 2015, more than double the 3% average growth rate in the previous six year period.

Another industry that has grown in tandem with the Philippine economy is the construction sector. As Tita sees the market – more buildings means there is greater demand for pipes.

It is for these reasons that Crown Asia decided to produce locally a complete line of PPR pipes and fittings.

Eugene Lee Villanueva, Crown Asia president, says “the PPR market is huge. It’s like the entire universe. Buildings built 30 years ago used GI pipes. They would have to be replaced. Most likely new buildings will use PPR pipes.”

They last longer than GI pipes and are less likely to corrode. Since PPR pipes ensure a tightly sealed system they are most reliable in plumbing and water supply plants. They are eco-friendly with no heavy metal content such as lead.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM FORBES PHILIPPINESView All

Hungry startup At 165

The country’s oldest bank wants to grow bigger and under its 55-year-old CEO Cezar P. Consing it will be out there fighting for its share.

10+ mins read
Forbes Philippines
August 2016

Change In Store?

Big Riady investment is a bet that Indonesian e-commerce finally is at hand.

5 mins read
Forbes Philippines
July 2016

Made In The Shades

The new Fiji resort Vatuvara reveals Oakley founder Jim Jannard’s vision for a secluded paradise.

4 mins read
Forbes Philippines
July 2016

Make Money Being Clean

Rather than look at effluent as waste, Tanduay sells it at profit, saves on treatment cost and polishes its distillery reputation.

6 mins read
Forbes Philippines
July 2016

Smooth Conveyor

Designing pipe lines in a building requires careful vision. Cross connection between pipes for drinking water and pipes carrying waste water can be a revolting experience

7 mins read
Forbes Philippines
July 2016

The Future Is Now

New technology presented at the 2016 Beijing Motor Show points to a future of Internet-powered and driverless vehicles

3 mins read
Forbes Philippines
July 2016

Skype Meets Cash

The latest salvo in the war for the future of money: person-to-person currency transfers. Silicon Valley’s heavyweights are betting that a $1-billion startup called Transfer Wise can pull off the trick right now.

9 mins read
Forbes Philippines
August 2016
RELATED STORIES

'it Was So Frenetic:' Hbo Max Follows Wolfgang Puck Catering

Cooking a meal for a big group is always stressful. So just imagine cooking for over 1,000 guests. Now make those guests white-hot celebrities like Brad Pitt.

4 mins read
Techlife News
Techlife News #481

CALLS TO REOPEN CLASSROOMS GROW AS TEACHERS GET VACCINATED

State leaders around the U.S. are increasingly pushing for schools to reopen this winter — pressuring them, even — as teachers begin to gain access to the vaccine against the raging pandemic.

5 mins read
Techlife News
Techlife News #481

50 COUNTRIES VOW TO PROTECT 30% OF LAND AND SEA BY 2030

At least 50 countries committed to protecting 30% of the planet, including land and sea, over the next decade to halt species extinction and address climate change issues, during a global summit Monday aimed at protecting the world’s biodiversity.

3 mins read
Techlife News
Techlife News #481

INTEL REPLACES ITS CHIEF EXECUTIVE AFTER A ROCKY STRETCH

Intel is replacing its CEO after only two years in what had been a rough stretch for the chipmaker.

2 mins read
Techlife News
Techlife News #481

APPLE ANNOUNCES NEW PROJECTS AS PART OF ITS RACIAL EQUITY AND JUSTICE INITIATIVE (REJI)

IT’S ALL PART OF THE COMPANY’S $100 MILLION PLEDGE

2 mins read
Techlife News
Techlife News #481

US UNEMPLOYMENT CLAIMS JUMP TO 965,000 AS VIRUS TAKES TOLL

The number of people seeking unemployment aid soared last week to 965,000, the most since late August and a sign that the resurgent virus has likely escalated layoffs.

4 mins read
Techlife News
Techlife News #481

SAMSUNG PROMISES NEW PHONES WILL DELIVER MORE FOR LESS MONEY

Samsung’s next crop of smartphones will boast bigger screens, better cameras, and longer-lasting batteries at lower prices than last year’s lineup that came out just before the pandemic toppled the economy.

2 mins read
Techlife News
Techlife News #481

ITALIAN ‘PINOCCHIO' TAKES THE PUPPET TO ITS ROOTS

The latest cinematic rendering of “ Pinocchio, ” from Italian director Matteo Garrone, is informed not by the friendly 1940 Walt Disney retelling, but the original source material.

2 mins read
Techlife News
Techlife News #481

WHATSAPP GROWTH SLUMPS AS RIVALS SIGNAL, TELEGRAM RISE

Encrypted messaging apps Signal and Telegram are seeing huge upticks in downloads from Apple and Google’s app stores.

2 mins read
Techlife News
Techlife News #481

US SPACE COMMAND SITE TO BE LOCATED IN HUNTSVILLE, ALABAMA

The U.S. Air Force announced that the new U.S. Space Command headquarters will be in Huntsville, Alabama, after the state was selected over five others competing for the project, including Colorado, where Space Command is provisionally located.

3 mins read
Techlife News
Techlife News #481