After two years, Chile’s Cementos Bío Bío and its Brazilian partner Votorantim have successfully obtained all permits to build their first plant in Peru, representing an investment of US$160m.
In the past few weeks, the tender details for the equipment needed and the financing arrangement have been worked out. Hernán Briones, president of Bío Bío said funding would come from the cement company’s cash flow and rejected the possibility to emit shares or to realise a raise in capital.
Works on the 0.7Mta plant in Lima’s Pachacámac district is expected to start at the beginning of 2014 and be finalised two years later. With raw material reserves of 80Mt, the lifespan of the new unit is set at 70 years.
The cement producers forecast annual sales of US$100m. “In Peru, with 28m inhabitants, there is a great need for infrastructure,” said Jorge Matus, the company’s general manager. Both Matus and Briones see the market as having potential for ready-mix.
