In Guatemala, Cemex S.A. plans to invest close to $16 million in the expansion of its production plant located in the municipality of Puerto de San José, department of Escuintla.
According to the interactive platform "Construction in Central America" of CentralAmericaData's Business Intelligence Unit, Cemex Guatemala S.A., submitted to the Ministry of Environment the Environmental Impact Study (EIA) to develop the project called "Arizona Plant Capacity Expansion".
50% of production from the Cemex additive plant inaugurated in Panama will be destined for the local market, and the remaining 50% will be exported.
The cement company said that its objective is to supply the construction industry in Panama, in addition to exporting to Central America and the Caribbean, which is why it decided to settle in Panama Pacifico.
The Constitutional Court has ruled as unfounded the suits on unconstitutionality filed by cement companies and left in place a tax of $0.65 on the distribution of each sack of cement.
The Constitutional Court decided to maintain the tax of $0.65 per sack of cement as indicated by the reform approved for the Law of Specific Tax on the Distribution of Cement under the fiscal year 2015 of the National Budget.
More than $50 million will be invested in the construction of the new grinding plant which will increase cement production capacity in 2017 to reach 860,000 tons a year.
From a statement issued by Cemex:
CEMEX announces new CLH grinding plant in Nicaragua
Monterrey, Mexico. May 5, 2014
- CLH to invest approximately $ 55 million
- Production capacity to reach 860 thousand tons of cement in 2017
Court cases arising from from tax exemptions granted by central governments but which go against municipal regulations are common in the region.
Eluniversal.com.mx reports that "Although the government of Costa Rica has ordered the cancellation the operations of a quarry belonging to the Costa Rican subsidiary of the transnational company Cementos Mexicanos (Cemex) in the northwestern town of Abangares, over a debt of some 7 million dollars in tax payments, the company announced yesterday that it will appeal the decision because it "unjustifiably harms" operations in this country. The resolution was issued on Friday by the General Office of Geology and Mines at the Ministry of Environment and Energy (Minaet ) of Costa Rica. Cemex has three days to appeal because the order is for the Abangares police to prevent exploitation at the quarry. "
With growth in infrastructure projects and general construction, companies in the sector are investing in improvements and expansion of their production capacities.
The companies Cementera Mexicana (Cemex) and Productos Industriales de Concreto (Proinco, SA) with investments of $5.8 million and $3.2 million respectively, are counting on increasing their operating capacities.
While in the past 10 years 150 hardware stores closed down after the arrival of large players, the franchises Construrama and ConstruRed have expanded.
Both companies use a franchise model that seeks to connect manufacturers of hardware products and building materials with small and medium hardware stores to better compete with the larger scale of EPA and Grupo Progreso.
The company will begin production of a new brand of concrete that offers better quality and resistance, and that is currently being sold in international markets.
CEMEX will soon start producing a new brand of concrete, Hidratium, a technology using internal curing of the concrete which is already available in France, Ireland, Mexico, Poland and Guatemala.
After 10 years of litigation, the First Chamber of the Judiciary has ruled in favor of the cement company Cemex on a case related to tax collection.
According to the Municipality of Abangares, in the province of Puntarenas, the cement company owed $10 million in tax payments related to the operation of a quarry.
Among the actions requested by the Municipality is a request to the Ministry of Environment, Energy and Telecommunications for the concessionary award to Cemex to be annulled.
“Cemento Panamá” and “Cemex Panamá”, assured they are capable of coping with the surge in demand caused by the upcoming expansion of the Panama Canal, without importing cement.
Together they are capable of producing 3 million tons a year: Cemex 1.4 million and Cemento Panamá 1.6 million.
Cemex has recently invested $300 million to modernize its production facility, and Cemento Panamá expects to conclude the expansion of its plant in 2010, in which it has invested $100 million.
The Mexican cement company will produce low-cost cement for a public social housing project in Nicaragua.
The product will be labeled using the "Cemento Popular" (Popular Cement) brand, and packed using special bags for this government project.
"Maximum production will be 47.000 monthly bags. It will be used in the construction of 4.000 low-cost homes, funded with $90 million from the Nicaraguan Social Security Institute and commercial banks", reported Cnnexpansion.com.
With growth of 42% in March 2009, the industrial sector is the one that gets the most credit from Panamanian banks.
Despite restrictions resulting from more rigorous conditions for granting credit, industry in general can gain liquidity and it has the capacity to repay. Cemex tops the list due to its operation expansion in order to cover the demand generated by canal expansion and other infrastructure projects.
The most affected sectors are cement and concrete with a decrease in demand of 20% and 30% respectively.
According to Carlos Gonzalez, country director for Cemex (company which closed 5 concrete plants in Costa Rica), the reactivation of the Costa Rican economy would be achieved with three levers: State investment in infrastructure, increased credit to encourage domestic consumption and "encouragement of direct foreign investment through incentives or improvements to the free trade zone law."
In the face of a 20% to 30% decrease in the demand for cement and concrete, the multinational closed five of its concrete plants.
Of the three production lines that Cemex has in Costa Rica, cement, concrete and aggregates, the concrete sector has been hardest hit by the crisis. With the closing of the 5 facilities, there are only 3 left operating.
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