Votorantim Cimentos increases investments

Bywanglee

Updated Fri, 10 Apr 2015 12:03:03 GMT

Brazil: Votorantim Cimentos has announced a new investment package for 2015 – 2018. US$1.6bn will be invested in five new plants in Brazil, one in Turkey and one in Bolivia, as well as in the expansion and modernisation of existing plants. The announcement comes after an investment plan of US$3.2bn, completed in the period between 2007 - 2014, when the company expanded its global production capacity by 51%.

In Brazil, Votorantim's priority is to increase production in the central-north and northeast regions. It has identified growth potential in the construction sector and in cement consumption in those regions. Two of the new cement plants will begin operating in 2015, one in Edealina, Goiás and another in Primavera, Pará. In the second phase, the construction of two plants in Sobral and Pecém in Ceará is planned and one in Caaporã, Paraíba. The plants are expected to come on stream in the second half of 2017.

With its new plants, Votorantim will increase its cement production capacity in Brazil by 18%, adding about 6Mt/yr to the current capacity of 32Mt/yr of cement. The investments are in line with the company's preparation for a new cycle of growth in the country. "We are concentrating investments in attractive and profitable markets, always with long-term vision and thinking of the future market demand," said Walter Dissinger, Votorantim Cimentos' CEO.

In the Americas and Europe, investments include one cement plant in Yacuses, Bolivia in partnership with two other companies and one new plant in Turkey. The company is also considering the construction of a new plant in Morocco. In the US there is a project for the expansion of the Charlevoix plant in Michigan. "The American market is recovering and is also attractive," said Dissinger. The new projects outside of Brazil will add 2.5Mt/yr to the company's installed capacity. "We prepared ourselves to confront a challenging scenario in Brazil and follow our policy of thinking in the long term. Our discipline and financial solidity allows us to keep investing to be ready for the recovery of the markets," said Dissinger.