Philcement Corp., a subsidiary of diversified firm PHINMA Corp., is expecting to boost its manufacturing operations after Japanese cement giant Sumitomo Osaka Cement Co., Ltd. signed a deal to acquire a 15 percent stake in the company.

The share subscription agreement, signed on Tuesday, involves the issuance of primary shares and is expected to close before year-end, subject to regulatory and closing conditions.

Philcement said the investment supports its growth strategy and commitment to deliver reliable, high-quality cement products under its Union Cement brand.

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

Despite Sumitomo's entry, PHINMA will remain the majority shareholder of Philcement, which is engaged in the manufacture, importation, processing, distribution, and sale of cement products.

The development comes as PHINMA reported a consolidated net loss of P226.92 million in the first half of 2025, weighed down by property and construction businesses despite higher revenues. Net loss attributable to equity holders of the parent stood at P455.06 million.

As of the end of June, PHINMA held P3.33 billion in cash and cash equivalents, P53.98 billion in total assets, and P15.27 billion in stockholders’ equity.