Cemex cautiously optimistic on Latvian outlook

Cemex is cautiously optimistic on the outlook for Latvian construction activity in 2014 as a pick-up in activity is starting to be seen.

Cemex country CEO Enrique A Garcia said that growth has finally resumed in the construction industry, albeit from a low base, LETA news agency reported. During recent times of depressed domestic demand, the company has been highly-dependent on regional exports.

However, forecast indicate an improvement and Cemex is cautiously optimistic on the outlook going into 2014. The macroeconomic environment in the Baltic region is expected to stablise and the construction industry to continue going. Latvia’s accession to the euro zone may spur foreign investment into the country, including the construction industry.

Cemex is the sole cement producer in Latvia and in 2009 completed the installation of a new, modern kiln line at its Broceni works which raised the plant’s capacity from 0.4Mta to 1.15Mta of clinker. Further investments have increased grinding capacity to 1.6Mta of cement.

The company was largest supplier of construction materials in Latvia last year, according to the Latvian Business Report 2013. The company achieved a turnover of LTL59.98m (EUR17.37m), the report by Firmas.lv and Nozare.lv shows.