PHINMA Corp., the listed holding company of the Del Rosario family, announced Tuesday it signed a joint venture agreement with the Floirendo Group to build a multibillion-peso cement plant in Davao del Norte province.
The planned cement facility, expected to be operational by 2026, will have a production capacity of 2 million metric tons a year, PHINMA said in a filing with the Philippine Stock Exchange.
The partnership will solidify their position as pioneers in infrastructure development and economic progress in the region, the company said. It will also guarantee the availability of quality cement to support Mindanao’s development, PHINMA said.
Under the agreement, Philcement Mindanao Corp., a 70-percent owned subsidiary of PHINMA’s cement unit Philcement Corp., will run the state-of-the- art facility. The Floirendo-led Anflo Management and Investment Corp. (ANFLOCOR) owns the balance of 30 percent.
“Construction materials are among the many essentials needed to a dignified life through housing and infrastructure. This partnership, which is one of many with the Anflo Group, will enable us to improve the lives of many Mindanaoans,” said PHINMA Construction Materials Group president and chief executive Eduardo Sahagun.
ANFLOCOR Real Estate and Construction Group president and Philcement Mindanao vice chairman Ricardo Lagdameo said the partnership would ensure the continued steady supply of good quality cement in the region as Mindanao is expected is sustain its growth momentum.
“Partnering with a like-minded group that has a very extensive track record in this space and whose core value is improving the lives of the communities they operate in, was something very important for us.” said Lagdameo.
PHINMA and Anflo Group have been present in the Davao region since the 1950s.
PHINMA through Philcement operates a cement processing facility in the Freeport Area of Bataan in Mariveles, Bataan. Last month, it bought Petra Cement Inc. for P500 million.
Petra Cement operates a cement grinding facility in Zamboanga del Norte with a capacity of 500,000 metric tons per annum. The facility caters to the Northern Mindanao market.
PHINMA returned to the cement industry in 2018 after selling its controlling stake in Union Cement in 2004.
“PHINMA is steadfast in its commitment to infrastructure development, with our business solution designed to promote this. We welcome this opportunity to deepen our relationship with the Floirendos, a like-minded partner and fellow pioneer in nation-building,” said PHINMA chairman and chief executive Ramon del Rosario Jr.
