Cimpor outlines Latin America spend

Cimpor is to invest some BRL3bn (US$1.319bn) over the next four years which is expected to include new factories in Brazil and Argentina.

Company CEO Ricardo Lima said the main objective is to reinforce Cimpor's position in Brazil where it operates in all regions except the north. The company is therefore gong to invest in a new unit in northern Brazil, probably Belem or Manaus, he told local news agency, Lusa. Another factory is being planned for Argentina’ western province of San Juan, where in the first six months the market performed better-than-expected according to Lima.

Following the corporate restructuring of Cimpor and asset swaps with InterCement Austria Holding, Cimpor’s new additions in Argentina, Brazil and Paraguay contribute an EBITDA of some €116m
compared with €46m in 2012 from the assets disposed of to Votorantim. 

Brazil is now by far the most important contributor, with cement shipments in the first half registering a 104.5 per cent jump to 5.9Mt because of the increased sphere of consolidation. In volume terms, Argentina, which also includes the Paraguay numbers, is now the second largest contributor, with a cement volume of 3.12m tonnes and a turnover of €315.5m. In volume terms, Argentina, which also includes the Paraguay numbers, is now the second largest contributor, with a cement volume of 3.12Mt  and a turnover of €315.5m.

In October, CImpor will also inaugurate a plant in Paraguay where it holds a 35 per cent of market share.