Despite challenges faced by the local cement industry, Sumitomo Osaka Cement Co. Ltd. of Japan is acquiring a 15-percent stake in Phinma Corp.’s subsidiary Philcement Corp.

Phinma disclosed to the Philippine Stock Exchange (PSE) that Philcement has signed a share subscription agreement with Sumitomo for the acquisition through the issuance of new or primary shares.

Sumitomo Osaka Cement is a leading cement manufacturing company with over a hundred years of experience in the industry. In 2023, it sold its 9.2-percent stake in Holcim Philippines to Holderfin B.V., which paved the way for the delisting of Holcim Philippines from the PSE.

“The transaction is aligned with Philcement’s strategy and commitment to grow its manufacturing operations and provide Filipino consumers with reliable, high-quality supply of cement products under its legacy brand, Union Cement,” Phinma said.

The transaction will be closed before the end of the year, subject to the satisfaction of closing conditions. Phinma said it will remain as the majority shareholder of Philcement upon closing of the transaction.

Philcement, currently a 60-percent-owned subsidiary of Phinma, is engaged in the manufacture, importation, processing, distribution, and sale of cement products. Its other shareholders are Edcommerce Corp. and Viet Cement Terminal JSC.

Phinma said Philcement is building a modern cement manufacturing facility in Davao del Norte that can produce two million metric tons (MT) annually. The facility is targeted to start operations next year.

Earlier this month, Aboitiz Construction said it has completed the design and construction of the new berth of DICT Bulk Terminal Inc. (DBTI), a joint venture (JV) between the Floirendos’ Davao International Container Terminal Inc. (DICT) and Philcement.

Strategically located in Panabo City, Davao del Norte, the expansion is poised to meet the rising demand for efficient bulk cargo handling in Mindanao.

The new berth measures 200 meters long and 18.5 meters wide, with a 4m x 4m mooring dolphin. It can accommodate vessels with a deadweight tonnage of up to 60,000, and will be equipped with a state-of-the-art material handling system.

Primarily designed to handle cement and cementitious materials, the facility expands DICT’s berthing and cargo-handling capacity.