Venezuela third-quarter sales contract 12%
According to reports from official agencies, cement and steel companies, sales of inputs in the third quarter of reported falls between 12 and 30% over the same period in 2009, and the impact this decline was younger generation capacity.
Cement figures show that at the end of third quarter, sales were down 12% over the same period of 2009. Neither Cementos Venezuela (previously owned by Cemex) and the National Cement Factory (previously Lafarge) are operating at full capacity. The official bodies indicate that the cement companies require investments in the order of VEB2bn.
In particular there exists cash flow problems at Cemex due to the regulation of prices, failure to supply clinker, low equipment availability and delays in plant maintenance. National Cement Factory is also struggling with clinker supplies. The state company has no spare parts to run the plant maintenance, and several teams are worn. The official authorities have recognised in their reports that the restrictions presented in the cement companies may compromise the continuity of operations in the future.
Published under Cement News
