CEMEX strengthens supply chain to support U.S. operations in their efforts to address cement shortage - CEMEX strengthens supply chain to support U.S. operations in their efforts to address cement shortage
February 2, 2021
CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE: CX) announced today it is optimizing its supply chain to meet shortages experienced throughout the western U.S. The optimization includes a kiln's recommissioning at a cement plant in northwest Mexico. This announcement leverages CEMEX's unique supply chain synergies in North America to alleviate cement shortages and project delays in California, Arizona, and Nevada.
CEMEX is investing approximately U.S.$15 million to recommission a kiln with a production capacity of about 1 million tons of cement annually at the CPN cement plant in Hermosillo, Sonora, Mexico. This investment should create more than 130 jobs in Mexico. Using its extensive distribution network in the region, CEMEX seeks to consistently supply Portland cement through its terminals in California, Arizona, and Nevada.
“Many cement customers in California, Arizona and Nevada have been impacted by supply constraints this past year,” said CEMEX USA Executive Vice President—Cement Commercial Joel Galassini. “The decision to recommission this kiln was made with our customers top of mind, to give them reliable access through a local supply chain to help meet their growing needs. Our unique network of production facilities in this region allows us to make these types of investments that will have a meaningful impact on meeting our customers’ needs.”
Currently, CEMEX supplies more than three million tons of cement each year across California, Arizona, and Nevada from its Victorville, California, cement plant, and sea-borne imports. The kiln restart at the CPN plant in Mexico, increased efficiencies at the Victorville cement plant in California, and other supply chain modifications are planned to help the company deliver hundreds of thousands of additional tons of cement through its local supply chain.
“With the kiln going back into operation, we are leveraging our strong network and local assets at CEMEX to help meet the increased construction needs in the region,” said CEMEX USA Regional President—Arizona Region David Nabavi. “We strive to provide our customers a superior customer experience and deliver the materials they need when they need them.”
“We are excited to build greater synergies with our Mexican operations to strengthen our U.S. cement supply chain and help our customers avoid or mitigate any potential delays to their projects in 2021,” said CEMEX USA Regional President—California Region Francisco Rivera.
The recommissioned kiln is expected to be fully operational and delivering cement by the second quarter of 2021. For now, CEMEX continues to import cement through its California marine terminals to help meet its customers’ supply requirements.
CEMEX is a global building materials company that provides high-quality products and reliable services. CEMEX has a rich history of improving the well-being of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future. For more information, please visit: www.cemex.com
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