Mexico Cemex mulls expansion in Russia, China, India

Mexico Cemex mulls expansion in Russia, China, India
Published: 05 November 2004

Mexican Cementos Mexicanos SA (Cemex), the world’s third largest cement maker, plans to start operations in Russia, China or India, after the purchase of the British building materials producer RMC Group Plc, Cemex said.

Cemex agreed to buy RMC for some US$4.15bn (3.23bn euro) in cash in an attempt to increase its total turnover and to strengthen its position on the global cement market and the purchase will be finalised in January 2005.

Debts included, RMC’s price totalled US$5.8bn (4.52bn euro), Cemex added.

Cemex will have over 50,000 staff after the purchase and annual sales of almost US$17bn (13.3bn euro). The annual sales of the world’s largest cement maker, French Lafarge, stands at some US$16.8bn (13bn euro).

Cemex is currently analysing business opportunities in China and is also interested in the situation in Russia, Cemex director said.

The company is also interested in operating in Turkey, although the market there is oversupplied and the prices are too low, he added.

Cemex increased its net profit for the third quarter 2004 to US$361m (281.5m
euro) from US$140m (109m euro) for the same period of 2003, bolstered by the rise in operating revenue, lower debt and the appreciation of the Mexican peso, the company said.