Beijing Oriental Yuhong enters the Chilean market with Construmart acquisition

The Chinese company will acquire the Chilean home improvement chain for US$123 million.

Chinese company Beijing Oriental Yuhong Waterproof Technology Co. will acquire Chilean construction materials and home improvement retailer Construmart for US$123 million via a subsidiary. Construmart had been acquired in December by Inversiones RTB, a holding company owned by businessman and former Minister of Sports Gabriel Ruiz-Tagle, who also served as president of Chilean football team Colo-Colo.

Construmart operates 29 stores from Arica to Puerto Montt, which will now pass into the hands of the Chinese conglomerate. But what do we know about Oriental Yuhong?

Key player in the Olympic Games

Founded in March 1998 and headquartered in Beijing, Oriental Yuhong is a leading Chinese waterproofing materials company with a significant domestic and international presence.

Its solutions are used in housing projects, railways, highways, urban roads, bridges, airports, water conservation facilities, and integrated pipeline systems.

The company operates 52 production, innovation, and logistics centers across China, including in Beijing, Shanghai, and Hunan. It also has facilities in Trinidad and Tobago and Pennsylvania, USA, with products distributed in over 40 countries across Europe, the Americas, Africa, and Asia.

In 2024, the company reported revenues of US$3.9 billion, with a market capitalization also of around US$3.9 billion and US$2.4 billion in shares outstanding. BTG Pactual noted that the acquisition of Construmart by Oriental Yuhong represents the company’s “first major investment in Latin America.”

The company played a major role in the 2008 Beijing Olympics, supplying waterproofing solutions to more than 85% of the Olympic buildings and facilities—a milestone that consolidated its reputation in China as a leading player in the industry.

Market implications in Chile

Oriental Yuhong’s founder and largest shareholder, Li Weiguo, holds more than 22% of the shares in the company. Construmart is Chile’s third-largest player in the home improvement retail sector, behind Sodimac and Easy, and its acquisition could intensify competition in the market. According to Chilean newspaper El Mercurio, the new owners are planning to expand the network of stores.

Source: Emol.