DMCI Holdings Inc. has revised its timeline for turning around Concreat Holdings Philippines Inc. (CHP), the cement firm it acquired in December last year, extending the initial one-year goal to three years. Herbert Consunji, CFO of DMCI and president of CHP, said that while progress has been made in operational efficiency, the company expects to be “above water” by the end of this year after taking over the fourth-largest cement producer in the Philippines.
CHP, formerly Cemex Holdings Philippines, closed the first nine months of 2024 with a loss of P1.24 billion, marking a 52 percent year-on-year increase from P819 million in 2023. Sales also fell 15 percent, from P15.88 billion to P13.5 billion. However, Consunji remains optimistic that operational improvements and synergies within the DMCI group will drive long-term profitability.
The acquisition of CHP, which included the APO Cement and Solid Cement brands, was valued at $272 million and secured DMCI an effective 51 percent stake, with its subsidiaries Semirara Mining and Dacon Corp. holding the remaining shares. As part of the transaction, DMCI has committed to enhancing CHP’s logistics, product mix, and cost management.
Significantly, the expansion of Solid Cement’s facility in Rizal is set to increase CHP’s production capacity by 1.5 million tons by early 2025, pushing the total capacity to 7.2 million tons annually. This expansion is expected to strengthen the company’s foothold in the Luzon cement market.
DMCI’s strategic focus on reducing production costs—especially energy and fuel expenses—along with streamlining administrative processes following Cemex’s exit, should also help CHP stabilize. With synergy benefits anticipated across DMCI’s broader portfolio, the company aims to turn CHP into a profitable asset within three years, boosting its cement and power sectors simultaneously.
