Colombia’s largest cement company, Argos SA, will build a $300m plant in a special economic zone to take advantage of a new decree that slashes income taxes on companies operating there.
Argos will build the plant in a special economic zone in the coastal city of Cartagena, Argos said in a filing to the country’s regulator Wednesday. The Colombian government has slashed corporate taxes for companies that invest at least $32m or create more than 600 jobs over the next three years in special economic zones to 15% from 38.5%.
An Argos executive, who declined to be named, said the tax changes allow the company to "develop a project more financially feasible."
The project, which should come on line in 2009, has been expanded since it was first announced in August.
The investment is higher than the initial $275m figure and total production will be 1.8 Mta of cement, above the original 1.68Mt, the official said.
The plant will help Argos increase its exports and provide cement supplies to its recently acquired concrete companies in the U.S, Argos said.
With the new plant, Argos’ total output will increase to 13.3Mta of cement.