Cruz Azul legal dispute risks sustained cement production

Mexico-based cement producer Cruz Azul is currently facing a legal conflict in its plant in Tula, Hidalgo, that threatens to impact cement production. The plant currently employs 1300 workers and two groups are seeking control of the company.

A day after the failed seizure of the facilities that the dissident group intended that resulted in a riot, the cooperative members chaired by Federico Sarabia, warned that due to the series of sabotage and actions taken against them by the group led by Jose Antonio Marin and Victor Velazquez, cement production "is at risk”, reported CE Noticias Financieras.

"We have had many blockades and boycotts by the dissidents led by Jose Antonio Marin and Victor Velazquez in their attempt to take over the administration, which may jeopardise the production of cement," warned  Board of Directors President, Federico Sarabia.

"They are blocking the purchase of limestone to make cement, the purchase of gas, fuel oil, we have had many blockades, production is at risk," he warned.

The Tula plant produces around 7000tpd of cement and it is expected that the dispute could lead to disruptions in the supply of the material to the construction industry, especially in the Metropolitan area of Mexico.