Venezuelan government accords VEB2.4bn to FNC and Invecem
The Venezuelan government announced the budget for the state enterprises, allocating VEB2.4bn (US$558.1m) to cement companies Fabrica Nacional de Cementos (FNC) and Industria Venezolana de Cementos (Invecem). Cementos Venezuela (formerly Cemex), has not been made public as the business is in a transition phase.
FNC has been allocated a budget of VEB860.8m and Invecem VEB1.6bn. In return, it is expected that the two companies will have to produce 3.7Mt of cement.
While cement production recovered last year, it is still far from its 2008 level. Cement producers presented reports to the National Executive detailing the need for increased resource allocations as they experienced cash flow problems following price regulation, equipment breakdowns and difficulties in raw material supply.
The Venezuelan government increased cement prices by 80% on 27 December from VEB8.30/bag to a minimum VEB15.00/bag.