PHINMA Corp. said its acquisition of Petra Cement Inc.’s plant in Zamboanga del Norte is an opportunity to serve the cement needs of Northern Mindanao.
In January, PHINMA unit Philcement Corp. signed a manufacturing and sale agreement with Petra Cement to enable the former operate the latter’s cement plant, and to manufacture and produce, distribute and sell cement products.
“We actually look at that as an opportunity. When we look at where (the plant) is located, it’s almost like we’re the only one there serving northern Mindanao. We think that has a good potential for us,” said
Eduardo Sahagun, PHINMA executive vice president for construction materials group.
The acquisition will complement the 1.5 million ton per year cement packaging plant PHINMA plans to put up in Davao. Currently, PHINMA has a processing plant in Mariveles, Bataan.
“That will bring our total capacity to somewhere like 5 million tons if all those things will be completed in a couple of years,” said Sahagun.
The deal is yet to be concluded.
Sahagun said the Davao plant is about to start, with initial cost estimated at P2 billion.
PHINMA’s construction materials group composed of Union Galvasteel Corp. (UGC), Philcement Corp. and PHINMA Solar Energy Corp. logged combined revenues of P13.27 billion and a combined net income of P430.95 million.
“UGC’s sales volume grew as construction activities rebounded in the second half of 2023,” the company said.
PHINMA earlier said it looks to spend P4.5 billion this year, up from last year’s allocation of P3 billion.
Of the amount, P500 million will go to the company’s hospitality and construction materials businesses.
