Phinma seals Sumitomo cement deal

Philcement Corp., the cement arm of diversified conglomerate PHINMA Corp., has secured a strategic boost from Japan’s Sumitomo Osaka Cement Co. Ltd., as the Japanese firm completes its investment to acquire a 15 percent stake through newly issued shares.

In a stock exchange disclosure on Monday, PHINMA confirmed that said Philcement “(received) the remittance of the investment by Sumitomo relating to the acquisition of 15 percent of Philcement through issuance of primary shares.” 

The deal, first announced in September last year, finalizes the share subscription agreement with Sumitomo, which PHINMA described as “a leading cement manufacturing company from Japan with over a hundred years of experience in the industry.”

PHINMA said the deal “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,” signaling that the fresh capital will support capacity expansion and operational upgrades.

The transaction also brings in a strategic partner with deep technical expertise, strengthening Philcement’s competitiveness in the local market. 

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

Philcement, 51 percent owned by Phinma, operates cement plants in Bataan, Pampanga, Zamboanga del Norte, and Davao.