Displaying items by tag: Philippines

Ireland: CRH’s sales revenue grew by 4% on a like-for-like basis to Euro21.8bn in the first nine months of 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 7% to Euro3.2bn. Sales grew fastest in its European and American heavy materials divisions with earnings growth more pronounced in North America than in Europe. The group reported growth in ready-mixed concrete and cement sales in North America as it continued to consolidate Ash Grove into the business. Sales in Europe were generally good, although declining construction activity in the UK was noted due to market uncertainty related to the country’s attempt to leave the European Union. CRH also reported falling sales volumes in the Philippines due to a slowdown in infrastructure spending.

Philippines: The Philippine Competition Commission (PCC) is considering voluntary commitments submitted by First Stronghold Cement and related parties in connection to its proposed acquisition of Holcim Philippines. First Stronghold Cement, an indirect subsidiary of San Miguel Corporation, has agreed to buy an 85.7% stake in Holcim Philippines, according to the Philippine Star newspaper. Companies undertaking acquisitions can make behavioural or structural voluntary commitments during the process to alleviate competition concerns with the PCC. Behavioural commitments include market constraints imposed by the PCC whilst structural commitments cover divesting assets.

Initial findings by the PCC on the proposed purchase found it could affect the market concentration of relevant products in parts of Luzon, and Northern and Southern Mindanao. This would normally prompt a stage two review of the proposed acquisition. However, if the PCC accepts the suggested voluntary commitments it would bypass this step.

Philippines: Irish-based CRH has engaged JP Morgan, the bankers, for the sale of its entire Philippine unit. The company operates 3.1Mt/yr of integrated and 0.8Mt/yr clinker grinding capacity via its stake in Republic Cement’s three integrated plants and one grinding plant, inherited in 2015 from Lafarge and Holcim as a part of the pair’s merger.

The Irish Times has reported the estimated value of the divestment at between Euro1.82bn and Euro 2.73bn. The announcement caused CRH’s share price to rise to its highest level since May 2017.

Philippines: Holcim Philippines improved its profit in the third quarter of 2019 by 158% year-on year to US$9.00m from US$3.48m. Its sales in the quarter fell by 2.7% year-on-year to US$163m from US$167m in 2018. The company sustained price increases in spite of lower demand causing a fall in volumes. Nine-month sales fell by 13% to US$465m from US$536m in the corresponding period to 30 September 2018. Upgrades to its La Union and Davao cement plants in previous quarters dragged on nine-month profit, which rose by 7.9% year-on-year to US$36.9m from US$34.2m in the corresponding period of 2018, but paid dividends in the third quarter, bolstered by the resumption of government infrastructure spending.

Philippines: Cemex Holdings Philippines has recorded a profit of US$17.1m in the nine months to 30 September 2019, compared to US$13.0m losses in the corresponding period of 2018. The company attributed the turn-around to steadily growing sales, up by 1.7% year-on-year to US$0.36bn from US$0.35bn, foreign exchange gains and lower income tax expenses, in spite of falling domestic volumes. The Manila Times has reported that a drop in construction activity and delays to projects failed to prevent a 5% rise in domestic cement prices throughout the period.

Philippines: Cemex Philippines has ordered a MVR type mill for cement raw material grinding from Germany’s Gebr. Pfeiffer for a plant in Antipolo. The order also includes a MPS mill to grind coal. Gebr. Pfeiffer said that the order was received through a Chinese general contractor. No value for the order or timescale was disclosed.

Philippines: Phinma Corporation is spending around US$50m on a new cement plant at Bataan with a production capacity of 2Mt/yr. Philcement, a subsidiary of Phinma Corp. and Seasia Nectar Port Services (SNPS), have signed a deal to take over certain construction-in-progress assets, including the usage rights to pier facilities and land currently under lease by Philcement, for a terminal for US$15.5m, according to the Philippine Daily Inquirer newspaper. Eduardo Sahagun, the president and chief executive officer (CEO) said that the company would need up to US$35m to complete the project. Once competed it will be possible to expand the unit to 4Mt/yr depending on market demand.

Philippines: Big Boss Cement and the related company Petra Cement are spending US$193m on cement grinding plant projects in Pampanga and Zamboanga. Big Boss Cement is building four cement lines at its Pampanga plant, according to the Business Mirror newspaper. Petra Cement is building two lines at Zamboanga del Norte. Both companies have the same shareholders, led by prominent businessman Henry Sy Jr.

Company President Gilbert S Cruz said that the companies will spend US$135m at Pampanga plant and US$58m at the Zamboanga plant. Each line will have a cement production capacity of around 0.5Mt/yr. Two production lines have been completed at the Pampanga plant and the remaining two are scheduled for completion in the first quarter of 2020. The first new line at Zamboanga will be completed in November 2019 with preliminary work on the second to follow afterwards. Big Boss Cement and its related companies also plan to build new plants at General Santos, Negros and Iloilo. It aims to reach a production capacity of over 5Mt/yr by the mid-2020s.

The company says it is using a grinded activated sand by heating (G-ASH) process to produce a binding material for concrete that does not use imported clinker. It has claimed that it is the first cement company in the world to do so.

Philippines: Premiere Slag has received an investment of US$1.95m from the Philippines’ AbaCore Capital Holdings for the construction of a cement facility in Mabina, Luzon.

Philippines: The 30-day inquiry by the Mergers and Acquisitions Office (MAO) of the Philippine Competition Commission (PCC) into First Stronghold Cement’s takeover of Holcim Philippines has concluded that the deal may affect market concentration in the cement sector. The Philippine Star reports that this finding clears the way for a phase-two review. The MAO will seek to ascertain whether the deal might result in lessened competition or increase the likelihood of cartel-like activities. This ties in with the Commission’s general investigation into anti-competitiveness in the cement industry.

First Stronghold Cement, a subsidiary of San Miguel, has a stake in Northern Cement and its president and chief operating officer, Ramón Ang, is also the majority owner and chairman of Eagle Cement. In May 2019 it acquired 85.7% of Holcim Philippines for US$2.15bn.