Cemex considers exiting Phillipines

Cemex is considering exiting the Philippines as part of its ongoing strategy to focus on markets with higher growth and lower risk. Cemex currently owns 89.86 per cent of Cemex Holdings Philippines (CHP) through Cemex Asian South East Corp (CASEC) and runs two plants, located in Antipolo and Cebu, with a total production capacity of 5.7Mta.

According to Bilyonaryo, CHP has struggled to pay the US$280m loan it borrowed to finance the expansion of its Antipolo works in 2017, with the delayed new 1.5Mta production line due to start operations in April 2024. In 2022 the company posted a net loss of PHP1bn (US$18.27m), compared to a PHP725.5m profit in the previous year.

In September 2020, Cemex announced that it would be focusing any future investments in the US and Europe, and has since exited from both Costa Rica and El Salvador. “Regarding divestments, CASEC actively evaluates divestment opportunities, and does not rule out that, in the short or medium term, it may sell all of CHP’s shares or cause the divestment by CHP of one or more of the operations and/or assets, to other companies that are part of the group headed by Cemex or unrelated parties,” said the company.

Its assessment of the future of CHP was part of its ongoing strategy to optimise and rebalance asset portfolios outside its core market like Asia, it added.