CEMEX S.A.B. de C.V. announced 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.