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 tons of cement per year. Following the completion of the
project, production will increase by approximately 4.4 million tons of
cement to 7.6 million tons of cement 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.
