Philcement Corp. (Philcement), a subsidiary of conglomerate PHINMA Corp., is boosting its production capacity with the planned acquisition of Petra Cement Inc. in Mindanao.
PHINMA said in a disclosure to the stock exchange Tuesday Philcement signed a share purchase agreement to acquire 100 percent of the outstanding shares of Petra for P500 million.
Petra, an affiliate of Big Boss Cement, has a manufacturing facility in Zamboanga del Norte including a cement grinding facility with a capacity of 500,000 metric tons per annum.
The plant is primarily serving the fast-growing Northern Mindanao market.
“This is aligned with Philcement’s growth strategy and its promise to assure Filipino consumers with reliable, high-quality supply of cement products under its legacy brand, Union Cement,” PHINMA said.
The deal is expected to be finalized by end-December 2024.
Philcement signed a manufacturing and sale agreement with Petra in January. The agreement enabled Philcement to operate the Petra plant and manufacture and produce, distribute and sell cement products.
Philcement, a 60-percent owned subsidiary of PHINMA, is primarily engaged in the manufacture, importation, processing, distribution and sale of cement products.
It operates a cement processing facility in the Freeport Area of Bataan in Mariveles with an initial annual capacity of 2 million tons.
PHINMA earlier said it was planning to build a P2-billion cement plant in Mindanao through a joint venture partnership with Davao-based partners.
PHINMA also has investments in education, steel products, real setae and hospitality businesses.
