CONSUNJI-LED DMCI Holdings, Inc. said on Tuesday it is spending around $340 million (P16.84 billion) this year for the establishment of cement production facilities in line with the company’s vision to enter the cement business.
In a disclosure to the Philippine Stock Exchange (PSE), DMCI Holdings Chairman and President Isidro Consunji confirmed that the company is planning to establish production facilities in strategic areas in the Philippines.
“[The plan aims to] serve the cement supply requirements of its construction and real estate companies, as well as the projected increase in infrastructure activities in the country,” the company said.
“DMCI Holdings believes that cement manufacturing will be a good, strategic addition to its business portfolio as it integrates and makes significant use of the DMCI group’s expertise and resources,” it added.
DMCI Holdings said funds for the production will be sourced from internally-generated cash and local borrowings.
Once completed, the facilities will have a combined production capacity of 5,000 metric tons per day.
“DMCI Holdings is undertaking the necessary feasibility and technical design studies for the cement business,” the company said.
“Further details will be disclosed to the Exchange as they become final,” it added.
DMCI Holdings holds the Consunjis’ businesses and investments in construction (DM Consunji), power and mining (DMCI Power Inc., Semirara Mining and Power Corp., DMCI Mining), property development (DMCI Homes, DMCI Project Developers Inc.), and water utilities (Maynilad Water Services Inc.)
During the first quarter of 2017, the parent company recorded a net income of P259 million, up from the P219 million posted in the same quarter last year.