US GeoLogistics To Acquire Raw Materials for Mexican Cemex

US GeoLogistics To Acquire Raw Materials for Mexican Cemex
Published: 24 September 2004

U.S. logistics company GeoLogistics will acquire raw materials on behalf of Cemex under a three-year agreement signed on September 21, 2004, Cemex said.

The agreement also envisages that GeoLogistics will sign private and public services contracts for Cemex.

The purchases of raw materials to be carried out by GeoLogistics exclude cement, Cemex’s vice president of corporate supplies, Francisco Cue added. GeoLogistics will acquire raw materials for Cemex from 70 countries worldwide.

The agreement is expected to lead to a considerable cost reduction for the Mexican company. The production costs of Cemex total some $2.0 bln (1.623 bln euro) annually, including spending for fuel, water and electricity.

GeoLogistics provides logistics services in more than 100 countries.