Brazil: Holcim considers cement expansion

Brazil: Holcim considers cement expansion
Published: 19 July 2007

With an eye in the heated civil construction market  Holcim is planning to add capacity either setting up its fifth cement plant or expanding existing units.

Commercial manager Carlos Garrocho Almeida says the company should sell 3.8Mt of cement in 2007, 18% above 2006 (3.2Mt), and within two years should use the idle capacity of its plants of around 30 per cent. A decision on investments would be made within the next few months.

Holcim has plants at Minas Gerais (2), Rio de Janeiro and Espirito Santo states, and in the case it decides for a new plant with 1Mta the investments would be around US$200m-300m.

Holcim is to end 2007 with a net income of above R$1bn, 20% above 2006 (R$863m). The company should enlarge its market share from 8% to 10%, thanks to a marketing strategy reinforcing its presence among retailers that account for 70% of the sales, and investments of R$5m in branding & packaging.