Displaying items by tag: Cemex
Puerto Rico: Cemex Puerto Rico has extended its contract with the Puerto Rico Ports Authority by 20 years. The subsidiary of Mexico-based Cemex uses Pier 16 of the Port of San Juan. Joel A Pizá Batiz, the executive director of the port authority, said that data from the Development Bank Economic showed that country had a cement demand of 590,000t in 2020. He added that Cemex’s investment in the local economy was over US$400m and it injects US$20m/yr into the local economy. Cemex operates the Ponce plant in Puerto Rico. It switched to grinding cement in 2018.
Cemex Puerto Rico extends San Juan port licence until 2042
21 January 2022Puerto Rico: Cemex Puerto Rico has successfully renewed its licence for use of Pier 16 at the Port of San Juan until 2042. Puerto Rico Ports Authority executive director Joel Pizá Batiz estimated Cemex Puerto Rica’s contribution to the territorial economy to be US$20m in 2020 and its total investments in the island to be US$400m.
The Metro Puerto Rico newspaper has reported that Puerto Rican cement consumption was 590,000t in 2020.
Cemex France supplies white architectural concrete for Vitesco Technologies’ Toulouse campus
21 January 2022France: Cemex France has supplied 900m3 of its white architectural concrete to the site of Vitesco Technologies’ upcoming Toulouse campus in Occitanie Region. The producer also supplied pumping services and managed the project through its Cemex Go digital platform. It said that the campus aims to achieve High Environmental Quality (HQE) certification for its environmental and energy performance, while ensuring acoustic, hygrothermal and visual comfort for occupants.
Cemex harvests olives from rehabilitated Split quarry
19 January 2022Croatia: Volunteers from Cemex collaborated with the Agricultural and Veterans’ Cooperative Lintar and local school pupils to harvest 6.5t of olives from the site of its rehabilitated Split quarry in Split-Dalmatia. The company says that the winter crop produced 900l of olive oil.
Cemex’s Europe, Middle East and Africa corporate affairs, sustainability and environmental resources manangement vice president Andrew Spencer said “We recognise that our industry has consequences for the environment, but Cemex is working hard to actively counteract climate change and this drive is present through all aspects of our business. In our cement and aggregate quarrying operations across Europe, we restore and recultivate our sites to provide optimal conditions that are managed well to deliver for biodiversity.” He added “Our vision is of a successful, sustainable Cemex that makes a positive contribution to people and the environment.”
Cemex supplies concrete for Khalifa Port
14 January 2022UAE: Cemex has supplied 400,000m3 of advanced semi-dry heavy-duty concrete to Abu Dhabi Ports Group’s Khalifa Port. Cemex said that the concrete’s composition maximises its lifespan, increasing sustainability.
Mexico: Cemex’s total dispatches of its Vertua reduced-CO2 concrete in Mexico reached 284,000t in 2021. After launching the product in its home country on 8 December 2020, the company supplied it to 3820 sites throughout 2021. Cemex says that it enters 2022 with 1580 orders outstanding.
Oman: The German University of Technology in Oman (GUTech) has 3D printed a 190m2 house in Halban, Al Batinah South governorate, using conventional concrete. Trade Arabia News has reported that the structure is the world’s largest 3D printed building. GUTech applied Denmark-based Cobod’s D.fab product to print the building using Mexico-based Cemex’s concrete in five days.
Cementos Progreso grows in Central America
05 January 2022We start 2022 with the news that Cemex is selling up to Cementos Progreso in Costa Rica and El Salvador. On 20 December 2021 Cemex announced that it was selling one integrated cement plant, one grinding plant, seven ready-mix concrete plants, one aggregate quarry and one terminal in Costa Rica and one terminal in El Salvador. The sale is valued at around US$335m with an expected completion date in the first half of 2022 subject to regulatory approval.
This sale is noteworthy because it concerns Mexico-based Cemex selling off assets in its ‘back yard’ of Central America. Once the sale completes it will retain operations in Panama, Nicaragua, Guatemala and Colombia under its Cemex LatAm subsidiary. It will also continue to operate in the Caribbean in the Dominican Republic, Jamaica and Puerto Rico. Previous divestments by Cemex over the last five years or so have tended to focus on piecemeal (or bolt-off) divestments in the US and Europe. This latest sale could be viewed in a similar way if Central America and the Caribbean are seen as a region rather than individual countries. For its part Cemex describes the divestment as part of its ‘Operation Resilience’ plan to optimise its global portfolio.
Why it chose to sell up in Costa Rica is curious given that Cemex LatAm’s cement sales volumes for the region were reported as ‘flat’ in 2019 with the exception of Colombia and El Salvador. 2020 was then a shock, like almost everywhere else, as coronavirus caused disruption reducing sales volumes. 2021 saw recovery in all of Cemex LatAm’s national markets over the first nine months. Notably, both Cemex’s revenue and operational earnings in Costa Rica grew when comparing the first nine months of 2019, before the pandemic, to the same period in 2021, unlike Colombia and Panama. For the third quarter of 2021 Cemex said that growing cement sales volumes in Costa Rica had been driven by infrastructure and housing sectors. It also added that “Our cement footprint in the country is also a very relevant component of our regional trading network. We continued exporting during the quarter, mainly to our operations in Nicaragua.” In may be coincidence but it was interesting timing to add a comment like that.
From Cementos Progreso’s perspective the new assets in Costa Rica and El Salvador are part of an ongoing expansion phase outside of its home base. At home in Guatemala the company operates three integrated plants. The third, the San Gabriel plant, started up in 2019. In the same year the company purchased Cemento Interoceanico and its grinding plant in Panama. Then in July 2021 the group commissioned its new Belmopan grinding plant in Belize as part of its Cementos Rocafuerte subsidiary. The new proposed acquisitions in Costa Rica and El Salvador start to fill in the gaps in Cementos Progreso’s network between Guatemala and Panama. The price seems on the high side for a 0.9Mt/yr integrated plant and a 0.9Mt/yr grinding unit. Yet the associated quarry, concrete plants, terminals and, crucially, the location may have made it one well worth paying. For comparison Peru-based Unacem agreed to purchase a grinding plant from CBB in Chile this week for around US$30m. Back in 2013 Lafarge sold assets in Honduras, including an integrated plant and a grinding unit, to Cementos Argos for Euro232m.
Both parties may do well out of this transaction. Cemex continues to show that it is fully prepared to sell assets anywhere as it sharpens up its operations. Cementos Progreso meanwhile is turning itself into a regional player to watch.
Costa Rica/El Salvador: Cementos Progreso has agreed to acquire Cemex’s Costa Rican and El Salvadorian assets for US$335m. The divested assets consist of an integrated cement plant, a cement grinding plant, seven ready-mix concrete plants, an aggregate quarry and one terminal in Costa Rica. An additional terminal is also being sold in El Salvador. The transaction is expected to be completed in the first half of 2022 subject to approval by the relevant competition authorities.
Cemex’s chief executive officer (CEO) Fernando Gonzalez said “This transaction allows us to progress in our portfolio rebalancing objectives, while redeploying resources to fund our growth investments and further deleveraging.”
Cemex’s APO Cement plant reported as operational following typhoon
23 December 2021Philippines: Cemex says that its integrated APO Cement plant in Naga City, Cebu is operational following Typhoon Odette. It reported to the Philippine Stock Exchange that the site had suffered property damage but that key production equipment had not sustained major damage. However, it has scaled back product dispatch due to infrastructure and logistical challenges caused by the aftermath of the typhoon. It also offered its thoughts to “those adversely affected by the storm and said that, “The safety and well-being of employees, contractors and communities are an immediate concern.