CEMEX to upgrade production and establish new cement plant in Egypt
May 4, 2000
Investment will support Egyptian goal for self-sufficiency in national cement industry
CEMEX, S.A. de C.V. (NYSE: CX) announced today an investment plan to develop the company´s operations in Egypt. The plan includes an upgrade of production capabilities of CEMEX´s Egyptian subsidiary, Assiut Cement Co., and the construction of a new manufacturing facility in Lower Egypt.
The initial investment of US$60 million will upgrade three existing production lines to increase the capacity of Assiut Cement´s facilities from the current 4 million metric tons per year to 5 million. The upgrade is expected to be complete by 2002. Assiut Cement Co. was acquired by CEMEX in 1999.
In the second stage, CEMEX plans to build a new cement facility with a total capacity of 1.5 million metric tons per year.
“Egypt is a key market for CEMEX. The company´s investment plan reflects Egypt´s growing infrastructure needs and supports the national objective of developing a self-sufficient cement industry. This is an ideal market for increasing production and distribution of cement and cement products, and CEMEX is pleased to be an investor in the nation´s future,” stated Ignacio Madridejos, President of CEMEX Egypt.
The Egyptian cement market consumed approximately 27.6 million tons of cement during 1999. The market has been growing at a compounded annual rate of 11% since 1995.
CEMEX is one of the three largest cement companies in the world, with approximately 65 million metric tons of production capacity. It is also the world´s largest trader of cement and clinker and the world´s leading producer of white cement. A pioneer in the use of information technology, CEMEX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker through operating subsidiaries in four different continents.