Cemex to build new plant in Latvia?

Cemex to build new plant in Latvia?
Published: 14 March 2006

Cemex has apparently decided to build a second plant in Latvia in eastern Europe, newspaper Reforma reported, citing Latvian daily Dienas Bizness.  The plans for the new plant were reportedly discussed between Cemex representatives and Latvian Prime Minister Aigars Kalvitis, according to sources.
 
Cemex previously announced plans to invest more than US$50m in the renovation of its existing plant in the country, in Broceni around 100km southwest of capital Riga, to increase production from 345,000t to 985,000t per year. 
 
Cemex also has a minority 34 per cent interest in the neighbouring Lithuanian company Akmenes Cementas, which produced a total 832,000t of cement last year. However Cemex has been rebuffed by the four private owners from achieving majority control of Akmenes and this latest announcement may well be part of a longer-term game plan by Cemex to achieve its ownership ambitions and hence a dominance within much of the Baltic region.
 
Cemex is currently the largest ready-mix producer and supplier in Riga, the capital city of Latvia and the second largest supplier in the country. The company also produces concrete products and limestone aggregates and meal. The money for the expansion in Latvia will come from Cemex’s US$500m capital expansion program, which will be fully funded with free cash flow generated during the year, according to Cemex.