Cemex outlines 2016 investment spend

Cemex plans to invest US$700m in various maintenance and expansion projects in 2016, according to Fernando González, CEO of Cemex.

Of the total sum US$450m will be allocated to plant maintenance while the balance will be invested in expanding its current operations, repositioning of stock and a new plant in Colombia.

In 2015 Cemex carried out a cost reduction programme, along with increasing its cash flow and selling assets. This resulted in a gain of US$75m, the first net profit in six years and reversing the loss of US$507m posted in 2014.

Cemex’ CEO said the company would continue to sell assets – around US$2.2bn in 2016-17. By December 2015, Cemex had sold US$700m of assets.

For 2016 the company expects to see cement sales increase by 3-4 per cent while concrete and aggregate sales are forecast to rise 5-6 per cent.