RCC senior vice president and corporate information officer Renato Sunico said the company’s board has approved the purchase of shares of Continental Operating Corp., Southeast Asian Cement Holdings Inc., FR Cement Corp. and Lloyds Richfield Industrial Corp.
He said this move is aimed at "enhancing the company’s overall business interest and commercial significance in the cement industry."
The plan comes on the heels of a trademark agreement with the Paris-based Lafarge S.A., a global leader in the building and construction supply industry, which is seen to improve RCC’s market development program.
Lloyds Richfield Industrial Corp. (LRIC) and FR Cement are both subsidiaries of Southeast Asia Cement Holdings Inc. (Seacem), a publicly-listed cement holding firm.
Early this month, LRIC shut down its manufacturing facilities in Cebu as a "consequence of poor cement market conditions and today’s unpromising future predictions of construction activity in the Philippines."
LRIC’s decision followed similar recent cases of temporary shutdown or production cutbacks by other major cement firms such as Solid Cement, Apo Cement, Continental Cement and even its sister company FR Cement.
LRIC’s management consists of Seacem — one of the country’s largest cement producers — and its foreign partner Lafarge which continues to view the Philippine market favorably after it acquired Blue Circle Philippines Inc., the foreign partner of the Henry Sy-controlled Fortune Cement Corp.
In August last year, a four-way integration of operations took effect involving RCC, Fortune Cement, Zeus Holdings Inc., Iligan Cement Corp. through a simultaneous share exchange to create the country’s second largest cement manufacturing block. In addition, RCC holds equity interest in Mindanao Portland Cement and Premier Cement Corp.
Two months ago, Fortune Cement Corp. (FCC) said it will also reorganize and restructure its operations in preparation for the impending entry of Lafarge, which bought out Blue Circle from the company.