China-based construction materials giant Huaxin Building Materials Ltd. has committed to continuous investment in one of the Philippines’ largest cement producers, following its takeover of the Holcim Group’s local unit in a deal worth over $800 million.

Holcim Philippines Inc. President and Chief Executive Officer (CEO) Mohit Kapoor said in a statement that Huaxin is well-positioned to further develop the company over the long term, driven by its strong track record of delivering growth.

“Holcim Philippines’ market position and long-term potential are promising, and Huaxin is committed to investing in its future growth as part of its international strategy,” said Kapoor.

“Huaxin brings with it industrial technology, technical talent, and concrete plans to further grow the existing platform in the Philippines,” he added.

Switzerland-based Holcim announced on Sunday, Aug. 3, that it had signed an agreement with Huaxin to transfer its shares in a deal valued at approximately $807 million (roughly ₱49.23 billion).

The company will initially sell a 67.623-percent stake for $527 million, with its remaining 31-percent stake to be sold within the next three to five years for at least $280 million.

Holcim noted that the transaction value may increase “based on incremental value creation during this period.”

The deal remains subject to customary and regulatory approvals—including clearance from the Philippine Competition Commission (PCC)—with the sale of the majority stake expected to close in the first half of 2027.

“We are excited about the opportunities ahead and remain focused on continuously delivering performance and value for all our stakeholders,” Kapoor said.

Holcim Philippines operates four cement clinker plants, one cement grinding station, five ports, and multiple storage and distribution points nationwide. It has an annual clinker production capacity of 5.2 million metric tons (MT) and an annual cement production capacity of 9 million MT.

In a regulatory disclosure, Huaxin stated that it plans to deploy its mature management systems and advanced production processes to boost Holcim Philippines’ capacity utilization.

“The company has established a track record in successfully integrating and developing acquired companies, achieving post-acquisition performance improvements, and realizing targeted returns on overseas investments,” Huaxin said.

With this acquisition, the Wuhan-based company adds another international firm to bolster its global presence, offsetting declining domestic demand.

Huaxin currently operates across 14 countries, with an annual clinker output capacity of 26.60 million MT and an annual cement production capacity of 36.15 million MT.

“This acquisition will further strengthen the group's business presence in Southeast Asia, expand its global production capacity, and enhance its international market influence and resilience against cyclical fluctuations,” the company added.

Holcim Philippines voluntarily delisted from the Philippine Stock Exchange in 2023 after its public float fell below the minimum requirement following an equity purchase by its largest stakeholder, Holderfin B.V.