CEMEX confirms interest in Gresik participation
September 2, 1998
CEMEX, S.A. de C.V. (CMXBY:OTC) confirmed today to the Indonesian authorities its interest in pursuing a 14% minority participation in the Indonesian market-leading cement producer, PT Semen Gresik (Persero) Tbk (SMGR: Indonesian Exchange). This minority participation would be based upon a shareholder´s and management participation agreement that would allow CEMEX to comply with its stated investment criteria, and should permit Gresik to benefit from CEMEX´s management expertise.
CEMEX has initiated discussions with the Indonesian authorities to define the terms and conditions that would be acceptable for the parties involved. In the privatization process, CEMEX remains as Preferred Bidder.
Hector Medina, CEMEX´s Executive Vice President of Planning and Finance, stated, "Despite the current global economic outlook, Indonesia is an attractive market for CEMEX and offers favorable long-term growth prospects. This investment is congruent with our strategy of prudent international diversification within markets that offer high long-term growth."
Founded in 1906, CEMEX is the largest cement producer in the Americas and one of the three largest cement producers in the world, with a production capacity of approximately 52 million metric tons per year. CEMEX is the market leader in its operations in Mexico, Spain, Venezuela, Panama, and the Dominican Republic; the company has a significant presence in the markets of Colombia, the Caribbean, the southwest region of the United States of America, and the Philippines.