DMCI Holdings Inc., the flagship of the Consunji family, now expects its newly-acquired cement firm, Concreat Holdings Philippines Inc. (CHP), formerly Cemex Holdings Philippines Inc., to return to profitability in three years instead of the initially projected one year.

In an interview, DMCI Chief Finance Officer and Concreat President Herbert Consunji stated that the company will at least be "above water" this year after the new management implements operational efficiencies.

"There are a lot of things to do. There's room for improvement. We will try everything positive," Consunji said in an interview at the Management Association of the Philippines (MAP) meeting last week.

The Consunji Group, through DMCI Holdings, Semirara Mining and Power Corporation, and Dacon Corporation, completed its acquisition of Cemex Asian South East Corporation (CASEC) last December for $272 million—lower than the previously announced $305.6 million.

DMCI said the deal secures nearly 90 percent ownership in Concreat Holdings Philippines, marking the group's strategic expansion into the cement manufacturing sector. The transaction was finalized on December 2, 2024.

CHP, which wholly owns APO Cement Corporation and Solid Cement Corporation, currently has a combined annual production capacity of 5.7 million tons. This is expected to increase to 7.2 million tons by early 2025 upon completion of the expansion plant at Solid Cement Corporation.

"We are excited to welcome Concreat Holdings Philippines into the DMCI group," said Isidro A. Consunji, Chairman of the Board of DMCI, SCC, and CHP.

He noted that "this acquisition aligns with our core expertise in engineering and construction and dedication to contributing to the infrastructure development of the Philippines."

"Our priorities are to enhance the logistics network, optimize the product mix, manage production and operating costs, and leverage potential operating synergies within the DMCI ecosystem," said Herbert M. Consunji.

The acquisition is anticipated to strengthen the DMCI ecosystem, with captured markets for coal, long-term contracted power capacity, fly ash, and cement products.

At the financial close, DMCI secured a 51 percent effective stake in CHP, while SCC and Dacon Corporation accounted for 10 percent and approximately 29 percent, respectively.

The closing of the deal was contingent on the satisfaction of several customary conditions, including approval from the Philippine Competition Commission, the settlement of the mandatory tender offer by Dacon to the shareholders of CHP, and the disposal by Cemex Asia of its 40 percent interest in both APO Land & Quarry Corporation and Island Quarry and Aggregates Corporation.

However, the parties agreed to waive the completion of Solid Cement's expansion program, and the agreement was amended to defer compliance with this condition.

CHP is constructing a 1.5-million-ton integrated cement production line at its Solid Plant in Antipolo, Rizal. This expansion will effectively double the company's cement production capacity in the Luzon region and boost CHP's overall installed annual production capacity by 26 percent from 5.7 million tons to 7.2 million tons.