Cemento Polpaico S.A.

What it is

Cemento Polpaico is a Chilean cement maker whose core business is producing and distributing Pozzolanic and Portland cement, as well as sand, gravel, and ready-mix concrete. It runs three production plants, spread across the Biobío, Antofagasta, and Santiago Metropolitan regions — covering Chile’s industrial south, its mining north, and its capital.

The company operates one integrated cement works and two grinding units with an annual cement capacity of 2.3 million tonnes, and also runs 25 ready-mix concrete plants. Polpaico was founded in 1945, and over the decades built a brand that is now, in its own words, repositioned as “Polpaico Soluciones” — a broader construction-materials offer.

Who owns it

The controlling shareholder is Inversiones Caburga Limitada, a vehicle of the Chilean Hurtado Vicuña Group, which bought the former 54.3% majority stake from global cement giant LafargeHolcim. The Hurtado Vicuña Group is a Chilean diversified family group with interests in insurance, telecommunications, and mining.

The structured data lists Inversiones Caburga Limitada as the direct controlling parent of Cemento Polpaico S.A. Other named shareholders at the time of the change of control included Banco de Chile on behalf of non-resident third parties (22%) and Inversiones Megeve Dos, linked to the Solari Donaggio family (around 6%). Current free-float and precise stake percentages are not disclosed in available sources post-acquisition.

Who runs it

Andrés Pérez Algarra has served as General Manager (CEO) since 1 April 2022, succeeding Javier Moreno Hueyo, who held the role for five years. He joined from within, having previously been the company’s commercial manager.

The chief financial role is held by Ignacio Viñuela Vicente, Gerente de Administración y Finanzas (CFO), and the board is chaired by Marcos Büchi Buc. Board members confirmed at the December 2024 extraordinary shareholders’ meeting include Felipe Silva Méndez, José Tomás Edwards Alcalde, Sebastián Ríos Rivas, Ornella Bono Ferrando, and Juan Carlos Hurtado Cruzat.

The money, in plain words

Sales have climbed sharply: revenue grew 23.1% in 2018 and a further 6.7% in 2019 (our calculations), reaching CLP 177.7bn (~US$193.3m). The company turned a corner in 2019 after two loss-making years — posting a net profit of CLP 5.77bn (~US$6.3m), a net profit margin of 3.25%: thin for an industrial business, but at least positive after consecutive losses in 2017 and 2018.

For every peso that owners have invested in the business, it earns just over 6 cents a year — a return on equity of 6.36%, modest by global peers. The gross profit margin in 2019 was 36.6% (our calculation), meaning raw production economics are reasonable; the squeeze happens further down the income statement in operating costs.

Cash on the balance sheet stood at CLP 1.67bn (~US$1.8m, our calculation), with no debt figure disclosed in available data.

What it is doing now

The company has rebranded under the name “Polpaico Soluciones,” grouping its cement, concrete, aggregates, and waste-management businesses under a single identity aimed at regional leadership. In December 2024 shareholders approved a capital increase — a new share issuance still in the process of registration with Chile’s financial regulator, the CMF, as of early 2025.

The company’s annual accounts and audit reports, prepared by PricewaterhouseCoopers, are published on www.polpaicosoluciones.cl and filed with the CMF and the Santiago Stock Exchange. A letter to the CMF has also confirmed that Polpaico’s controlling group, Cementos Gamma, will incorporate Cementos Bicentenario (BSA) in a 70/30 ownership split — a move that would consolidate Chile’s cement market significantly.

What to watch

• Capital raise execution: the December 2024 share issuance, once registered, will dilute existing holders and reshape the balance sheet — watch for its pricing and uptake.
• BSA integration: merging Polpaico and Cementos Bicentenario under Cementos Gamma would create a dominant force in Chilean cement; regulatory scrutiny is the key risk.
• Margin recovery: at 3.25%, the net margin leaves little cushion; any rise in energy costs or softening in Chilean construction demand could push it back into the red.
• Rebranding payoff: “Polpaico Soluciones” bets that selling concrete, aggregates, and waste services together earns better returns than cement alone — the 2025 figures will show whether that logic holds.

This is news, not investment advice.