DMCI Holdings Inc. said it will postpone plans to put up a cement plant in Semirara Island following its acquisition of Cemex Holdings Philippines Inc.
Herbert Consunji, DMCI chief finance officer and concurrent president of the newly acquired cement firm, said the focus is currently on Cemex which will be renamed Concreat Holdings Philippines Inc. (CHP).
Consunji said CHP’s Solid Cement has expanded the capacity of its plant in Antipolo which is much closer to the main market of Metro Manila and key provinces in Luzon. CHP’s Apo Cement has a plant in Cebu which serves the Visayas.
CHP, which wholly owns APO Cement Corp. and Solid Cement Corp., has a combined annual production capacity of 5.7 million tons. This capacity is expected to grow to 7.2 million tons by early 2025 upon the completion of the expansion plant at Solid Cement.
Consunji said producing cement on Semirara Island would necessitate shipping and transportation, adding to the product’s cost.
DMCI has been looking at putting up a cement plant in island as early as 2016.
The Consunji group completed its 90 percent purchase of CHP last year for $272 million from Cemex Asian South East Corp.
The ownership is divided into a 51-percent stake by DMCI, 10 percent by unit Semirara Mining and Power Corp. and 20 percent by Dacon Corp., the unlisted umbrella firm of the Consunji group.
Consunji also said Semirara’s coal operating contract (COC) from the Department of Energy is set to expire by July 14, 2027, and any plans for the island cement plant have to wait until the COC is renewed.
