By Anna Gabriela A. Mogato
CEMEX Holdings Philippines, Inc. (CHP) is eyeing to increase its capacity by 26 percent through a new cement production line worth approximately $235 million.
In a disclosure to the Stock Market on Thursday, CHP said its subsidiary, SOLID Cement Corp., has entered into “principal project agreements” with China-based CBMI Construction Co., Ltd. to establish a new cement production line.
The new facility, which will be located in SOLID’s Antipolo, Rizal cement plant, is expected to produce 1.5 million metric tons per year. The company is set to start operations by the fourth quarter of 2020.
CHP plans to source funding for the new production line through any of, or a combination of: free cash flow, debt from a subsidiary or its parent company, proceeds from capital market transactions, or debt from a financial institution.