Cementos Yura of Peru has invested PEN140m (US$50m) in new equipment in the year to date, mainly as a result of the construction of its new cement grinding unit. Grupo Gloria's subsidiary invested US$94m in 2013.
The investment is intended to place Cementos Yura in a better position to maintain its local market share and increase its export volumes. Large-scale infrastructure projects such as the southern gas pipeline, the building and extension of port facilities and the construction of Chinchero airport in Cusco are anticipated to boost domestic demand.
Yura's first-half profits slipped to PEN109.8m in 1H14 from PEN111.6m the year earlier although the second quarter noted a 3.5 per cent net profit to PEN60.4m YoY. The company's local cement sales in the second quarter fell 1.3 per cent when compared with 1Q13, from 546,584t to 539,442t as the economy showed a modest contraction and construction sector activity was reduced. However, domestic cement sales edged up slightly from 2,483,500t to 2,483,911t, according to the Asociación de Productores de Cementos. As a result, Yura's market share fell from 22 to 21.7 per cent during the quarter.
