BPI analysts say investments in Brazil Positive for Cimpor
Portuguese cement producer Cimpor’s possible investments in Brazil for EUR158.5m (US$250.4m) would be favourable for the company’s stock, if confirmed, Portuguese investment bank BPI said on July 11, 2008.
Yesterday Brazilian business daily Valor Economico reported that Cimpor would boost its capacity by raising significantly the output of three of its plants in Brazil and relaunching an old production line by the beginning of 2011. Besides, the company also planned small-sized investments in the other four production plants it runs in Brazil.
With the strategy, Cimpor would reportedly increase its production in Brazil by 1Mt to 7Mt. As to meet the increasing cement demand, the company was also said to build two new plants, one in the central-western region and another in the southern or the south-eastern part of the country.
BPI said that its current estimates show a 6.6Mt production capacity of Cimpor in Brazil in 2010.
"The rising demand, favoured by the need for infrastructures, and the recovery of the market prices are expected to continue benefiting Cimpor’s growth in Brazil," the analysts added.
Published under Cement News
