Cemex Venezuela, a unit of Mexican Cemex expects sales to grow 18 per cent this year from 2004 and sees another 10 per cent increase for next year, the affiliate’s president said on Tuesday. Enzo Moschella said Cemex Venezuela, which produces about 4Mt of cement a year for the local market, the Caribbean and the United States, will see 2005 consolidated sales of around $500m, including its operations in Panama and the Dominican Republic.
"Sales are going well," Moschella told reporters after a finance executives conference in Caracas. "We estimate for the end of the year a growth of 18 per cent." Cemex Venezuela , which Moschella estimates has 46 per cent of the local cement market, has benefited from the country’s strong economic growth. Officials expect the economy to grow between 5 to 10 per cent this year, giving a boost to the housing and infrastructure sectors.
Venezuela cement demand has grown by around 30kg per capita since 2003 when it registered consumption of 130kg per capita to 180kg per capita this year, Moschella said.
He also noted that expansion in the local market has meant the company has reduced its cement exports, which account for around 45 to 48 per cent of production from its plants in Venezuela.