Sumitomo Osaka back in Philippines , acquires 15% stake in Philcement

MANILA, Philippines — The cement manufacturer of Phinma Corp. has signed an agreement to sell a 15-percent stake to Sumitomo Osaka Cement Co. Ltd., a Japanese investor with a longstanding engagement in the Philippine cement industry.

Phinma unit Philcement Corp. yesterday said it has entered into a share subscription agreement with Sumitomo Osaka, one of the oldest cement makers in Japan.

This marks the return of Sumitomo Osaka in the Philippines after a two-year hiatus since giving up its 9.22-percent share in the now-delisted Holcim Philippines Inc.

“The agreement relates to (Sumitomo Osaka’s) acquisition of 15 percent of Philcement through the issuance of primary shares. The transaction will be closed before the end of the year, subject to the satisfaction of closing conditions,” Phinma said.

Sumitomo Osaka’s entry in Philcement will give the manufacturer a capital boost, as it pushes to expand operations under its legacy brand, Union Cement. The local cement industry is entering a growth phase on public and private efforts to put up more infrastructure.

Phinma will stay on as the majority shareholder of Philcement once the transaction is closed.

Philcement – a 60-percent owned subsidiary of Phinma – manufactures, imports, processes and distributes cement products, operating manufacturing facilities in Bataan, Davao, Pampanga and Zamboanga del Norte.

Last year, Philcement Mindanao Corp. acquired Petra Cement Inc. for P500 million to take over Petra’s facility in Zamboanga del Norte.

The Philippine cement market is gearing up for double-digit growth until the start of the next decade. According to a forecast from DataM Intelligence, the market will expand by 22 percent annually between 2023 and 2031 to reach a value of $21.06 billion.

DataM Intelligence attributes the growth path to public-private requirements for cement to build infrastructure projects. It also views the government’s push to construct more affordable housing as a driver of demand.

Sumitomo Osaka is engaged in seven lines of business, mainly in cement, where it is invested in the manufacture and sale of ready-mixed concrete products.

Sumitomo Osaka used to be a part shareholder of cement giant Holcim, but exited the company in 2023 prior to delisting from the Philippine Stock Exchange.