CEMEX Subsidiary Invests in New Cement Production Line
On 18 October 2018, SOLID Cement Corp., one of the main subsidiaries of CEMEX Holdings Philippines Inc. (PSE: CHP), entered into the principal project agreements with CBMI Construction Co. Ltd of China for the procurement, construction and installation of the 1.5 million metric tons per year expanded/new integrated cement production line at SOLID’s cement plant located in Antipolo City, Rizal.
The estimated investment in the new integrated cement production line is approximately $235 million. Upon completion, it is expected that this new line will represent a 26% increase in CHP’s cement capacity in the Philippines. CHP currently estimates the new line to start operations by the fourth quarter of 2020.
CHP expects that the investment in the new line could be sourced from one and/or any combination of the following options: free cash flow, debt from any subsidiary of CEMEX S.A.B. de C.V. (the ultimate parent company of CHP), debt from one or more financial institutions, and/or proceeds from one or more capital market transactions.