PHINMA Corp. unit Philcement Corp. is acquiring the port facilities and land assets of Seasia Nectar Port Services Inc. in Bataan for P800 million.
PHINMA said in a disclosure to the stock exchange the port facilities and land were being leased by Philcement for its Bataan cement processing terminal.
The purchase will be in the form of an assumption by Philcement of an SNPSI loan in the same principal amount.
“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 Philcement president and chief executive Eduardo Sahagun.
The purchase will result in operational and cost efficiencies in line 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 the port facilities are expected to be operational by the last quarter of 2019. Philcement will exclusively use the facilities.
With more control over the Bataan facility, PHINMA’s re-entry into the Philippine cement industry is strengthened further.
Philcement, which is 60-percent owned by PHINMA, 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 early this month signed an agreement to invest $50 million in preferred shares of Song Lam Cement Joint Stock Corp., 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. It is envisioned to contribute significantly to the growing demand for reliable and quality cement and construction materials in the Philippines.
The company exited the cement business in 2004 when it sold its majority interest in Union Cement Holdings Corp., which became a part of Holcim Philippines Inc.