Pablo Nano, an analyst at the Departamento de Estudios Economicos at Scotiabank, says that foreign firms are being attracted to Peru’s cement sector because of the buoyancy of the construction sector, responsible for 93.48% of Peruvian cement consumption, and because of the infrastructure and housing shortfalls (put at over US$37.7bn in the case of infrastructure) nationally.
Other analysts refer to global consolidation of the sector, reaching Peru a little late. Whatever the true reasons, three of the world’s top 10 players will open plants in central or southern Peru in 2013: Cemex, Votorantim and Cimpor. Cementos Portland announced last Monday that it would be building a plant in Manchay in alliance with Bio Bio and Votorantim. Local leader Cementos Lima, controlled by the family Rizo Patron, has been at work on a reaction since learning of Cemex’s local intentions via a filial named Latinamerican Trading back in 2007.
Lima has been expanding its plant in Atocongo at a cost of US$230m whilst working on client-loyalty at its distribution chain Progresol as well as boosting its finance system at D.I.Y group Hatun Sol.