November record month for Cemex, prices to rise, Poland

November record month for Cemex, prices to rise, Poland
Published: 29 November 2010

November will be a record month in terms of sales for Cemex Polska. Already in October YoY sales growth amounted to 20 per cent. According to Cemex representatives, this situation will inevitably lead to cement price rises, mainly due to increasing demand. "The years 2011-2012 will be very good, with funding available for many infrastructural projects," says Cemex Polska President Ricardo Naya.

At the same time, there are other factors that will result in cement price rises next year. "The average cost of maintaining production will increase 10 per cent in 2011. As a consequence, our prices will have to go up at least 10 per cent. We will know more about the raises in the whole the sector in early 2011, when contracts will be renegotiated," explains Naya. In Germany, cement prices have already gone up by EUR8-9/t

The company is expecting orders to pile up before the European Football Championships (EURO 2012). According to Naya, there will be a major overload in the cement, concrete and aggregate supply system for EURO 2012-related investments.

Despite the expected increase in demand, Cemex has postponed the construction of a new cement mill. "We know how the situation on the market will develop until 2012, but do not know what will happen later. EU members have to lower their deficits and the Polish government will also cut expenses," says Naya.

Cemex Polska has already prepared an updated five-year investment plan, which will be revised every year. If the situation on the market allows it, it will also include the new cement mill. The document is currently waiting for approval from the corporation’s headquarters. "We want to increase our aggregate resources and buy new mines. We also intend to conduct investments enabling our cement mills to run on more types of alternative fuel," reveals Naya.

Cemex is about to complete negotiations with a partner for a join-venture project in Chelm, where it will build a facility processing waste into alternative fuel. "It will meet one-third of our demand for alternative fuel in Poland. At present, we are bringing it in from Germany, but it is getting increasingly expensive there," states Naya. The facility is to be completed at the end of 2011, with the related cost to amount to EUR10m.