Uruguay: government-owned plants losing money

Uruguay: government-owned plants losing money
20 February 2017


Uruguay's budget deficit reached four per cent of GDP during 2016, equivalent to US$2.043bn, the worst performance since 1989, according to the latest figures released by the government's statistics office, INE. 2015 ended with a budget deficit of 3.6 per cent of GDP, which also set a record only comparable to 2002 (3.7 per cent).

Government-owned cement plants have been losing money at a rate of US$40m/year. Equipment to renew one of its plants, including a kiln costing over US$200m, is reported to be abandoned in a port in their original shipment containers.

This situation has forced the government brands to buy cement from private competitors to try to maintain their share of the market.

Published under Cement News

Tagged Under: Uruguay