Cemex Holdings Philippines (CHP) has put the kibosh on its contract with a Chinese contractor due to delays in the construction of the $235 million expansion of its subsidiary, Solid Cement.
CHP has issued a notice of termination to CBMI Construction, a member of the China Sinoma group, for the construction and installation of a new cement production line in Solid’s factory in Antipolo, Rizal.
Sinoma formed the world’s largest cement maker and plant builder after it merged with China National Building Material (CNBM) in 2017.
CHP cited a delay in the implementation of construction or installation works but it did not elaborate. The contract with CBMI was signed in October 2018.
“Solid is taking measures to address contingencies which may arise due to this termination, including the engagement of replacement contractor/s for the project. At this time, CHP is not able to assess the exact impact that this may have in the overall calendar to finalize the new integrated cement production line,” the company said.
The expansion plan is expected to increase Solid’s capacity by 1.5 million tons to 3.4 million tons.