About Us - Press Release - CEMEX to invest US$460 million to expand Tepeaca Cement Plant in Mexico
September 28, 2006
CEMEX S.A.B. de C.V. (NYSE: CX) announced today that it will begin the construction of a new kiln at its Tepeaca Cement Plant in Puebla, Mexico. The construction is expected to be completed in 2009. The total value of the investment, which will extend over a three-year timeframe, is approximately US$460 million.
Current production at the Tepeaca Plant is approximately 3.2 million cement tons per year. Following the completion of the project, production will increase by approximately 4.4 million cement tons to 7.6 million cement tons per year.
The Tepeaca Plant, strategically located in central Mexico, will operate using the most modern and efficient processes developed with CEMEX technology for cement production, fuel use, and environmental standards. The new kiln to be installed at the Tepeaca plant will be one of the largest ever constructed in the world.
With this additional production capacity, the Tepeaca Plant will become the largest and most modern cement production facility in the Americas.
"This investment reflects our confidence in the strength of the Mexican economy and in the continued high growth of the housing and infrastructure markets in the country. We expect this investment to provide a return on capital employed well in excess of 10% and will allow us to capitalize on the increasing demand for cement products in Mexico," said Lorenzo H. Zambrano, Chairman of the Board and CEO of CEMEX.
CEMEX is a growing global building solutions company that provides high quality products and reliable service to customers and communities in more than 50 countries throughout the world. Commemorating its 100th anniversary in 2006, CEMEX has a rich history of improving the well-being of those it serves through its efforts to pursue innovative industry solutions and efficiency advancements and to promote a sustainable future. For more information, visit www.cemex.com.
This press release contains forward-looking statements and information that are necessarily subject to risks, uncertainties and assumptions. Many factors could cause actual results to be materially different from those expressed or implied in this release, including, among others, changes in general economic, political, governmental and business conditions, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. CEMEX assumes no obligation to update or correct the information contained in this press release.