Competition in the Paraguayan cement market is expected to intensify following the announcement by Italy’s Colacem that it will invest US$220m in new production facilities in Concepción.

Environmental impact studies are expected to start very shortly with construction of the 1.5Mta plant scheduled to begin in 1H17.

The new plant will help to drive domestic cement prices down as well as increase supply to sufficient levels to enable cement exports from the Latin American country.