With the financial constraints on the group, Cemex is having to look at new ways of expanding into new markets. As a result, Cemex is taking a minority stake in a new cement venture in Peru.
The Mexican group, the fourth largest international cement producer, aims to invest up to US$100m in Blue Rock Cement Holdings and to provide technical, operational and commercial services to the new enterprise. Blue Rock intends to build a 1Mta integrated cement works costing come US$235m and aims for a 2013 completion date.
Blue Rock has been formed by Luxembourg-based financial investors Blueprint Management Partners to invest in cement, aggregates and concrete in emerging markets. The Peruvian cement market already consists of six cement producers, which this year should possess a combined capacity of some 12.2Mt, compared with an estimated demand in the region of 8Mt.
It remains to be seen whether the entry of Cemex will lead to any of the existing Peruvian producers decides to sell out one one of the other international cement groups as the market gets more crowded.