Cemex looks to strengthen presence in China

Cemex looks to strengthen presence in China
Published: 28 February 2011

Cemex is mulling a potential strategic partnership to strengthen its presence in the Chinese market, CEO Lorenzo Zambrano said.

"China is consuming 50 percent of the cement produced worldwide," Zambrano told a press conference prior to an annual shareholders meeting in the northern city of Monterrey.

Zambrano said the company already has permits and a strategic partnership for the production of pre-mixed cement in China, but he refused to provide further details "until a deal is finalized."

The CEO also said Cemex will invest some US$475m this year to continue expanding its global operations, including strengthening its presence in the Asian nation.

He said the events in Egypt have not adversely affected Cemex’s operations in the Middle East and that the company’s current sales in that region are almost at projected levels.

Regarding negotiations with President Hugo Chavez on compensation for expropriated assets in Venezuela, Zambrano said talks are in the final stage but it is not clear when they will be concluded.

"Things are really on the right path and we hope they’re resolved soon" because the lawyers on both sides are working hard to reach a deal that is mutually satisfactory, the CEO said.