PHINMA Corp. said its cement unit is buying the port facilities and land at its Bataan cement processing terminal for P800 million.
In a statement Friday, the listed company said its 60%-owned unit Philcement Corp. has signed an agreement for the acquisition and takeover of the assets which it previously leased.
“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,” Philcement President and Chief Executive Officer Eduardo A. Sahagun said in a statement.
The cement facility and its port are scheduled to start operations by the fourth quarter of this year. The company earlier said it will have a capacity of two million tons a year.
Phinma said the investment will strengthen its position in the cement industry.
The company in 2004 sold its majority interest in Union Cement Holdings Corp., which was then folded into listed cement manufacturer Holcim Philippines, Inc.
It decided to revive the business due to the growing demand for cement and construction materials in the country given the government’s infrastructure program.
Philcement will sell and distribute cement in selected areas under the Union Cement brand.
Phinma has also branched out to Southeast Asia through a $50-million investment with Song Lam Cement Joint Stock Corp., a subsidiary of Vietnam’s largest privately-owned cement manufacturer.
Incorporated in 1957, Phinma also has investments in education, property development, and hospitality.
Phinma’s net income attributable to the parent fell 35% to P27.84 million in the first half, amid a 26% jump in gross revenue to P5.64 billion.
Phinma shares rose 1.55% or 16 centavos to close at P10.50 on Friday. — Arra B. Francia