Union Cement secures P2.65 billion in loans

Union Cement Corp. (UCC) has secured P2.65 billion in total loans from a group of financial institutions, the company informed the Philippine Stock Exchange.

Of the total amount, P1.65 billion came from a syndicated loan agreement jointly arranged by ING Bank, NV and BB Capital Investment Corp.

The remaining P1 billion came from Metrobank and First Metro Investment Corp.

UCC is a fully integrated cement manufacturing operation with plants strategically located in the Philippines: two in Mindanao, in Lugait, Misamis Oriental and Davao City; and two in Luzon, in La Union and Bulacan.

The company is a member of Holcim, one of the world’s leading suppliers of cement as well as aggregates, concrete and construction-related services, with interests in over 70 countries in all continents.

UCC produces three types of portland and pozzalan cement. All of its product lines are marketed under the "Union" brand name, which is the best-selling cement brand in the Philippines and the only cement brand available nationwide.

UCC reported a significant increase in 2002 revenues following the consolidation of Alsons Cement into its operation and the turnaround of cement demand after five years of continuous decline since the start of the Asian financial crisis in July 1997.

"UCC capitalized on its strong balance sheet to take advantage of the growth opportunities in the market place. The acquisition of Alsons Cement was one those opportunities that the company identified, which is considered very strategic and timely considering the turnaround of market demand and the reduction in imports due to the provisional tariff of P20.60 per bag imported by the government," UCC chief operating officer Paul O’Callaghan said.

The acquisition of Alsons Cement by UCC was done through a share swap transaction and only a small amount of cash was used to pay minority shareholders who availed themselves of the tender offer for a cash instead of UCC shares.

UCC ended the year with a consolidated net income of P51 million after deducting depreciation, interest and foreign exchange losses of P2.7 billion. On a parent company level, UCC made P311 million in net profit that is almost the same as last year.

Formerly Hi Cement Corp., UCC Is the surviving entity from the merger of three Phinma-managed cement companies namely, Bacnotan Cement Corp., Davao Union Cement Corp. and Hi Cement. – Zinnia dela Peña