Consunji-led Concreat completes Rizal cement plant expansion

Herbert Consunji

MANILA, Philippines — Concreat Holdings Philippines Inc., formerly Cemex Holdings Philippines Inc., expects its expanded cement plant in Rizal province to help the company swing back to profitability by lowering costs.

The company disclosed to the stock exchange on Friday that its Solid Cement plant in Antipolo City had increased its capacity by 26 percent to 7.2 million tons (MT) following the completion of a new production line.

“This expansion is a pivotal step in Concreat’s turnaround,” Concreat president and CEO Herbert Consunji said.

“With higher capacity, a more efficient kiln and the use of Semirara coal, we are rebuilding momentum and lowering production costs—laying the groundwork for long-term recovery,” added Consunji, who concurrently serves as the chief financial officer of DMCI Holdings Inc.

DMCI acquired 51 percent of Concreat in December in a $272-million deal.

READ: Biz Buzz: Cemex rebrands to Concreat

Subsidiaries Semirara Mining and Power Corp. and Dacon Corp. hold 10 percent and 29 percent, respectively.

The public currently owns 1.35 billion shares in Concreat, representing a 10.01-percent ownership, or just above the 10-percent minimum requirement.

Turnaround

Consunji earlier said it would take around three years for Concreat to become profitable again, reflecting the still-challenging environment for the cement industry.

READ: Consunji targets Cemex turnaround in 3 years

While DMCI had initially planned a turnaround for the country’s fourth-largest cement manufacturer this year, Consunji pointed out there were still “a lot of things to do,” including improve Concreat’s operational efficiency.

DMCI is likewise betting on the integration of its businesses—mainly real estate and power—to help plug the bleeding in Concreat.

Concreat saw its net loss balloon by 4,141 percent to P19.51 billion last year due to a goodwill revaluation of P19.6 billion.

The revaluation reflects the difference between the purchase price—in this case, $272 million—and the fair value of Concreat’s assets and liabilities.

Total revenues also declined by 5 percent to P1.1 billion on lower cement prices.

Last July, Concreat subsidiary APO Cement Corp. signed a retail electricity supply agreement with Semirara’s SEM Calaca RES Corp. The latter will provide 44 megawatts of power to two cement facilities in Naga, Cebu province.

Meanwhile, DMCI Homes wants to source around 400,000 metric tons of cement from Concreat.