PHINMA subsidiary Philcement invests P800M for Bataan cement terminal port acquisition
Makati City, 27 September 2019
PHINMA Corporation (“PHINMA”) today disclosed that its 60%-owned subsidiary Philcement Corporation (“Philcement”) signed an agreement principally for the acquisition and takeover by Philcement of port facilities and land currently under lease by Philcement for its Bataan cement processing terminal, for total consideration of P 800 million. This investment shall result in operational and cost efficiencies which align with Philcement’s commitment to assure Filipino consumers of reliable, high-quality supply of cement products under its legacy brand Union Cement.
The cement processing terminal and its port facilities are expected to be functional by Q4 2019 and will be used exclusively by Philcement. With more control over the Bataan facility, PHINMA’s re-entry into the Philippine cement industry is strengthened further.
“This new agreement and additional investment will be a meaningful part of PHINMA’s strategy to provide cost-efficient and reliable supply of construction materials to our customers,” said Eduardo A. Sahagun, President and CEO of Philcement Corporation.
Philcement Corporation currently sells and distributes cement to select areas under the brands Union Cement Ultra (Type I Ordinary Portland Cement) and Union Cement Super (Type IP).
PHINMA recently confirmed that it entered into 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 to help ensure supply reliability for the Philippines with both volume and quality assurance.
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.
PHINMA Corporation is 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.