DMCI to enter cement business

Consunji-led DMCI Holdings Inc. on Tuesday said it is planning to enter the cement manufacturing business with an estimated $340-million investment cost for the establishment of cement production facilities in strategic areas across the country.

In a disclosure to the Philippine Stock Exchange, the company confirmed that its Chairman and President Isidro Consunji disclosed in a media interview its plans to put up a cement plant.

DMCI Holdings said that its potential entry to the cement business is "to serve the cement supply requirements of its construction and real estate companies, as well as the projected increase in infrastructure activities in the country."

"DMCI Holdings believes that cement manufacturing will be a good, strategic addition to its business portfolio as it integrates and makes significant use of the DMCI group's expertise and resources," the company added.

It noted that the $340-million cost to develop its cement business will be financed through internally generated cash and local borrowings.

"Once completed, the facilities will have a combined production capacity of 5,000 metric tons per day," DMCI Holdings said.

The company took note that it is undertaking the necessary feasibility and technical design studies for the cement business.

"Further details will be disclosed to the Exchange as they become final," DMCI Holdings said. —John Ted Cordero/KG, GMA News