Ancap of Uruguay and Camargo Correa, the Brazilian group that controls the Argentinian cement producer Loma Negra, have confirmed an extension to their current commercialisation deal that will take them up to at least 2008.

Last Thursday, the president of Ancap, Daniel Martinez visited Olavarria, Buenos Aires, where Loma Negra has one of its plants, and there it was decided that Ancap, an oil and gas group which also produces cement and concrete, will continue to sell 40,000t of cement in Argentina via Camargo Correa.

Ancap will continue with its plan to invest US$13m in modernising its two plants (in Minas and Paysandu).  Ancap is determined to reduce or eliminate losses made by its Portland division (roughly US$3m per annum);