Chilean investment group Invesa Briones’ cement producer Cementos Bío Bío has shut down a concrete plant in capital Santiago due to operational cost increases, local paper El Mercurio reported.
The firm decided to close the plant called Ready Mix Lira mainly due to hikes in fuel and electricity costs. The facility was one of the company’s seven plants in Santiago.
Cementos Bío Bío "has absorbed a strong increase in costs and has been unable to pass that onto the market, as in the case of the steel industry," the firm’s concrete manager Guido Sepúlveda was quoted as saying.
The plant produced 15% of the firm’s total concrete production in the city. This production is being absorbed by the remaining plants.
According to Sepúlveda, strong competition kept the firm from increasing concrete prices.