CEMEX Holdings Philippines, Inc. said its subsidiary Solid Cement Corp. had canceled its contract with CBMI Construction Co., Ltd. for the unit’s new production line due to delays.
In a disclosure to the exchange on Tuesday, Cemex said the contract covers the construction and installation of the Solid’s new integrated cement production line at its Antipolo City cement plant.
“At this time, [Cemex] 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 in a disclosure to the exchange on Tuesday.
“Updates will be provided as necessary for the guidance of the public,” it added.
The company said Solid’s notice of termination was issued “due to the delay in the implementation of construction or installation works.”
The termination applies to one of the principal project agreements with CBMI Construction.
“[Solid] is taking measures to address contingencies which may arise due to this termination, including the engagement of replacement contractor/s for the project,” Cemex said.
On Tuesday, Cemex shares at the exchange declined 1.69% or two centavos to close at P1.16 apiece. — Keren Concepcion G. Valmonte