PHINMA invests $50M in largest private cement manufacturer in Vietnam
Makati City, 24 September 2019
PHINMA Corporation (PHINMA) has confirmed that, as a major strategic step to support its re-entry into the Philippine cement market through Philcement Corporation (Philcement), it has concluded an agreement to invest US$50 million in preferred shares of Song Lam Cement Joint Stock Corporation (Song Lam), a subsidiary of The Vissai Group, the largest, privately owned cement manufacturers in Vietnam. Song Lam operates the biggest state-of-the-art cement plant in Vietnam and this investment will ensure supply reliability with both volume and quality assurance. When combined with its world class cement processing facility in Mariveles, Bataan, Philcement will be able to unlock market opportunities and continue to provide high quality cement to its customers.
This investment in Song Lam will assure Philcement of a steady supply of quality cement that will support both the private and public sector’s ever-expanding infrastructure projects, notably those under the Philippine Government’s Build, Build, Build Program,” said PHINMA President and CEO, Mr. Ramon R. del Rosario, Jr. during the signing of the Term Sheet, attended on the Vissai side by their management team led by Group Chairman, Mr. Hoang Minh Truong.
Philcement CEO, Mr. Ed Sahagun noted that “PHINMA’s investment is a strong complement to our integrated business platform that will optimize Song Lam’s high-capacity port loading facilities on the Vietnam side and Philcement’s cement processing terminal at Mariveles, Bataan on the Philippine side.”
Philcement is PHINMA’s vehicle for its cement industry comeback and is envisioned to contribute significantly to the growing demand for reliable and quality cement and construction materials in the Philippines. To date, the Philippines has an estimated annual demand of 32 million metric tons driven by both the government’s mega infrastructure program, as well as private construction activity. With domestic production at an estimated 27 million metric tons, there is a clear supply gap that PHINMA aims to address. “We complement local manufacturing to plug supply gaps, which can delay infrastructure development in the country as has happened in the past, by ensuring stable supply for the market,” explained Mr. Sahagun.
As a testament to the confidence of The Vissai in PHINMA’s management expertise, PHINMA will also be entitled to nominate the Chief Financial Officer of Song Lam, as well as, one member of the Board of Directors. The Vissai owns and operates five (5) cement plants, including Song Lam Cement, which exports cement products to 37 countries including the Philippines.
Philcement is a majority owned subsidiary of PHINMA Corporation, a public company listed with the Philippine Stock Exchange (PSE) under the trading symbol PHN. PHINMA Corporation also has investments in education, property development and hospitality.
