Cemex to restructure Puerto Rico operations

Cemex to restructure Puerto Rico operations
11 January 2018

Following its significant fall in domestic cement sales, Cemex Puerto Rico has announced changes to its operations effective this month.

While the company did not disclose further details about the number of dismissals, it aims to protect the highest number of jobs possible.

The cement producer will also modify operations at its Ponce works, which will operate as a grinding unit.

Cemex Puerto Rico President, Jorge Rojas, the current conditions in the local market prevent the company to sustain its traditional operational model. However, Cemex’s strategy and position in the market is expected to be maintained.

Cement sales have been declining since 2009, according to the Puerto Rican Development Bank (BGF). Cement sales fell by 70.2 per cent in September 2017 and a further 427.2 per cent one month later. November saw the trend continuing as sales dropped by 15.8 per cent. Total cement demand is currently around 0.4Mt or some 33 per cent of Cemex’s total installed capacity at the 1.2Mta Ponce plant.

In addition, high power costs led to the company to considerably reduce exports in 2016.

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Tagged Under: Cemex Puerto Rico Restructuring