CEMEX announces US$187 million investment plan in the Dominican Republic
April 3, 2000
CEMEX, S.A. de C.V. (NYSE: CX), announced today a US$187 million investment plan for the Dominican Republic, whereby CEMEX Dominicana, the company´s local subsidiary, will strengthen its position to reap the benefits of dynamic growth in the Caribbean´s construction sector.
CEMEX´s investment plan is mainly focused on the construction of a new clinker line, which will provide an impetus for self-sufficiency in the country´s cement industry.
The expansion of the clinker line, with an investment of US$145 million, will begin in April and should take 24 months to complete. The company´s clinker capacity will be increased to 2.2 million metric tons per year, from the current 600,000 tons, thus eliminating imports of this essential raw material.
CEMEX Dominicana is also building a new vertical mill, the largest of its type in the world, at a cost of US$22 million. This facility´s operation, scheduled to begin in September, will double the company´s current grinding capacity to 2.4 million metric tons per year, from 1.2 million.
The company has already begun installing new electric power generators with an 18-megawatt capacity, which will cost US$20 million. With this added capacity, CEMEX Dominicana will be self-sufficient in terms of electric power. The first stage of these facilities will be completed by the end of May.
Because of the rapid recent growth in the Dominican Republic´s construction business -- resulting primarily from tourism, housing, and new private and government projects --, the cement industry is now one of the busiest sectors in the national development effort.
Founded in 1906, CEMEX is one of the three largest cement companies in the world, with approximately 65 million metric tons of production capacity. Through operating subsidiaries positioned in four different continents, CEMEX is engaged in the production, distribution, marketing, and sale of cement, ready-mix concrete, aggregates, and clinker. In addition, the company is the world´s leading producer of white cement and the world´s largest trader of cement and clinker.