Displaying items by tag: Chihuahua

Mexico: GCC plans to spend US$450 - 500m on upgrade projects to its cement business over the next three years to 2024. It is considering building a new 1.1Mt/yr clinker production line at an unnamed existing plant but the board of directors is yet to make a final decision. Other projects include strengthening the group’s cement distribution network in Minneapolis, Minnesota and Utah in the US. This would also include building two new cement terminals. A debottlenecking project is being planned at the Samalayuca plant in Chihuahua state. This would increase the plant’s production capacity by 0.2Mt/yr and is scheduled for completion by the end of 2022. A final project is also scheduled for the Chihuahua plant to improve operational efficiency, and enhance social and environmental responsibility.

In earnings conference call notes for the second quarter of 2021 the cement producer reported for the US: “Every kiln at GCC is up and running; for practical purposes, our system is sold out.” It also noted bottlenecks in its grinding, storage and shipping installed capacity.

Mexico: Nearly 500 cement and concrete plants in the northern Mexican states of Chihuahua, Coahuila, Nuevo León and Sonora have partly or fully suspended production due to an on-going regional shortage of natural gas. The El Financiero newspaper reports that plants run by Grupo Cementos Chihuahua (GCC), Cemex, Holcim and Cruz Azul operate in this region.

GCC said that a lack of electricity and natural gas had affected production at three of its plants in Chihuahua, Samalayuca and Juárez. Mexican Association of the Ready-mix Concrete Industry (AMIC) president Ana Laura Burciaga said that the situation has caused a 50% drop in the cement supply to concrete plants.

The cause of the shortage is reported to be the suspension of natural gas exports from Texas, US. Mexican steel and automotive manufacturers have also been affected.

Mexico/US: Yanina Navarro, the general director of the National Chamber of Cement (CANACEM), says that Mexican cement producers are not worried by US tariffs on imports. Mexico exports 1.42Mt or 3.4% of its total production of 44Mt/yr to its neighbour, according to the EL Financiero newspaper. Data from the United States Geological Survey (USGS) placed Mexico at the fifth largest exporter of cement to the US after Canada, Turkey, China and Greece.

Grupo Cementos de Chihuahua (GCC) could be affected more than other Mexican producers by any tariffs as 17% of its production is exported to the US. Mainly this covers production from plants at Samalayuca and Juárez in Chihuahua. Hoevever, GCC operates five plants in the US, which would enable it to reduce the potential negative affects of tariffs.