Isidro Consunji, a prominent Filipino entrepreneur in the construction and mining industries, Accepts the Concrete Test
In a significant move, DMCI Holdings, a leading construction-and-mining conglomerate based in the Philippines, completed the acquisition of a loss-making cement unit from Mexican giant Cemex for $660 million in December 2024 [2][3]. This acquisition is set to synergize well with DMCI's existing operations, expanding markets for its coal, power, fly ash, and cement products [2].
The acquired cement unit, one of the top five producers in the Philippines with two factories and an annual production capacity of 7.2 million tons, is expected to enhance DMCI's market position and operational efficiencies across its diverse business sectors [2][3]. To make the acquisition profitable amidst competition and market challenges, DMCI is likely focusing on several strategies, including market expansion, operational efficiencies, product diversification, and strategic investments [4].
In addition to the cement acquisition, DMCI is also pursuing other strategic initiatives. The company has initiated a five-year, 291-billion-peso plan for its coal operations, which includes the development of a new mine and boosting coal production to 20 million tons from 16 million tons [5]. DMCI is also building a $1.5 billion high-pressure acid leaching nickel processing plant with an annual production capacity of 60,000 metric tonnes.
Isidro Consunji, chairman and president of DMCI Holdings, aims to turn the acquired cement unit around within two to three years [6]. He plans to make the unit more efficient by leveraging synergies with group companies, such as procuring coal and electricity on better terms [7]. The cement unit, which has been operating at less than half of its installed capacity due to declining sales and rising energy costs, is expected to benefit from these measures.
Meanwhile, Maynilad Water Services, a joint venture with Metro Pacific Investments, has been steadily increasing its contribution to DMCI's bottom line. Maynilad, which supplies water to over 10 million people in western Metro Manila, is gearing up for an October IPO to raise 38.6 billion pesos to substantially upgrade its facilities [8].
The government's Build Better More program, which targets increased outlays on infrastructure projects, is expected to drive increased cement demand, benefiting DMCI [9]. Total government spending on infrastructure is projected to at least double to 2 trillion pesos by 2028, from 1 trillion pesos in 2025 [10]. This projected increase in infrastructure spending is likely to further boost DMCI's cement and related businesses.
The acquisition marks Cemex's exit from the Philippines after more than a quarter of a century [3]. DMCI's key mining business helped to shore up earnings in 2024, and Isidro Consunji, the eldest son of DMCI founder David Consunji, represents a net worth of $3.4 billion, placing him and his family at No. 5 on the 2024 list of the Philippines' 50 richest [11].
In conclusion, DMCI Holdings' strategic acquisitions and investments are positioning the company for growth and profitability in the coming years. With a strong focus on market expansion, operational efficiencies, product diversification, and strategic investments, DMCI is well-positioned to capitalise on the increasing demand for its products, particularly in the cement industry, driven by the government's infrastructure spending.
- DMCI Holdings, a Philippines-based conglomerate in the construction-and-mining industry, is likely exploring strategies such as industry expansion, operational efficiencies, product diversification, and strategic finance to profit from their acquired cement unit and meet competition.
- Aside from the cement industry, DMCI Holdings is also active in the energy sector through Semirara Mining and Power, and in the real estate business through DMCI Homes, indicating their wide-ranging business interests in the Philippines.
