Buzzi Unicem , Italy’s second biggest cement maker, expects to halve investments next year and will resume its expansion of capacity in Ukraine and Russia when market conditions improve, Chief Executive Pietro Buzzi said on Wednesday.
The only important revamping project will be at the group’s Maryneal, Texas plant in the United States, where demand is being helped by government stimulus measures, and otherwise most investment will be focused on maintenance, Buzzi said.
"We are budgeting something like 155-160m (euros)," Buzzi told a conference call referring to 2011 investments.
"For capex in 2010 we are confirming that the total will be of around 300m (euros), probably something more rather than something less," he said.
The family-controlled group, which spent 244 million euros last year to raise production capacity, forecast on Tuesday its core profit would fall 15 percent in 2010 due to uncertainty over the scope and speed of the recovery.