Oct 4 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.