MANILA, Philippines - Listed power producer Trans-Asia Oil and Energy Development Corp. has acquired the stake of partner Holcim Philippines Inc. in a diesel power plant in Bulacan province.
In separate disclosures, the companies said Trans-Asia purchased Holcim’s 50 percent share in joint venture firm Trans-Asia Power Generation Corp. (TAPGC).
TAPGC owns and operates a 52-megawatt (MW) diesel power plant in Norzagaray, Bulacan.
The power plant provides all the electricity requirements of Holcim’s cement plant in Bulacan. Excess output is sold to the Wholesale Electricity Spot Market.
In 2011, TAPGC posted a net income of P10.3 million after selling 240 gigawatt-hours of electricity, 90 percent of which were taken up by Holcim.
In August 2011, the two listed companies signed a 15-year electricity supply deal. Under the agreement, Trans-Asia will supply the power requirements of Holcim’s cement plants in Bulacan and in Bacnotan, La Union starting Dec. 26, 2013.
Aside from Holcim, Trans-Asia supplies electricity to cement maker LaFarge Republic Inc. In July, the company entered into a five-year supply contract that began last Dec. 26.
With a workforce of more than 1,700, Holcim operates four plants in La Union, Bulacan, Misamis Oriental and Davao. It produces four cement products: Holcim Excel, Holcim WallRight, Holcim Premium Bulk and Holcim 4X which are sold in bags, tonner bags and in bulk.
The cement manufacturer is building a new plant, estimated to cost around $350 million to $450 million that will produce around two million tons of cement per year
Parent firm Holcim Ltd. of Switzerland is one of the world’s leading suppliers of cement and aggregates (crushed stone, gravel and sand) as well as downstream activities such as ready-mix concrete and asphalt.
Trans-Asia, for its part, owns and operates four plants with an aggregate production capacity of 186.4 MW.
The bulk of energy sales came from contract customers, with excess output sold to the spot market.
In the next three years, generating capacity is projected to increase with the start of operations of the 20-MW Maibarara geothermal plant in Laguna late this year and the 135-MW South Luzon Thermal Energy Corp. circulating fluidized bed power plant in Batangas next year.
Trans-Asia, which is 54.8-percent owned by Phinma Corp., is also into cement manufacturing and coal trading.