Cemex invests $235M for Antipolo plant expansion

CEMEX Holdings Philippines, Inc. (CHP) is earmarking $235 million for the new integrated cement production line at its subsidiary’s plant in Antipolo City, Rizal.

In a disclosure to the stock exchange, the listed firm said Solid Cement Corp. signed project agreements with China’s CBMI Construction Co., Ltd. for the procurement, construction and installation of the expanded cement production line at the Antipolo plant.

“As of October 18, 2018, the estimated investment in the new integrated cement production line is approximately $235 million,” CHP said.

The company said it will source funds from any of the combination of the following: “free cash flow, debt from any subsidiary of CEMEX, S.A.B. de C.V. (the ultimate parent company of CHP), debt from one or more financial institutions and/or proceeds from one or more capital market transactions.”

Solid Cement’s plant expansion, which will add 1.5 million metric tons a year, is expected to increase Cemex’s cement capacity by 26% in the Philippines.

At present, Solid Cement’s production plant has an annual capacity of 1.9 million metric tons. It serves the cement requirements of National Capital Region and Southern Luzon.

CHP said the new production line is expected to start operations by the fourth quarter of 2020.

CHP’s cement products are sold under three brands. The Island and Rizal brands are sold in Luzon, while APO is available in the Visayas and Mindanao region.

CHP is the local unit of Mexican cement and construction materials company Cemex S.A.B. de C.V.

Shares in CHP closed six centavos higher or 2.74% at P2.25 each on Thursday.