Cemex looks to sink US$700mn into 2008 expansions

Cemex looks to sink US$700mn into 2008 expansions
Published: 06 December 2007

Mexican cement giant Cemex plans to invest US$700m next year as part of its 2007-09 expansion program, local press quoted Cemex México president Jaime Elizondo as saying.

"We see lots of opportunities in the country’s growth... This year construction growth has been good, considering that it is the first year of the government [administration]," he said.

As such Cemex will continue with its expansion works at the Tepeaca plant in Puebla state, as well as at the Hermosillo plant in Sonora.

Mexico’s overall cement industry expects to grow 2.5 per cent this year, closing 2007 with 38.6Mt of national production, and four per cent in 2008, local paper El Informador quoted national cement producers association (Canacem) president Osmín Rendón as saying.

The cement sector is confident in the future thanks in large part to President Felipe Calderón’s national infrastructure plan, he said, adding that the sector will invest US$2.5bn in 2007-10, "practically doubling investment in only four years, that which was invested throughout the country from 2000-06."

Mexico’s cement industry is currently operating at 80 per cent capacity, he added.