Displaying items by tag: Bolivia

Holcim Mexico has been promoting itself as the lynchpin of the group’s growth in Latin America this week. The move makes sense following the spin-off of Holcim’s North America business in late June 2025. The company says that Mexico has a housing deficit, has the highest profitability margin in Latin America and it is leading the transformation toward circular and low-carbon construction.

The bullseye on Latin America was first planted by Holcim in the group’s NextGen Growth 2030 strategy that was released in March 2025. With the company preparing to separate off its most profitable section in the US, it decided to highlight new reasons for investors to stay interested. The summary was ‘focused investment’ in attractive markets in Latin America, Europe, North Africa and Australia, sustainability-driven growth with demolition materials singled out and an emphasis on the building solutions division. Although the Latin America division supplied the smallest geographical share of new group net sales in 2024 (US$3.9bn, 19%), the profitability metric presented, recurring earnings before interest and taxation (EBIT) margin, gave the region the highest result. Or in other words, Holcim is telling investors that it may have divested North America but it still has business south of the Rio Grande… and it looks promising. It then said that it has the ‘best’ geographical coverage and vertical integration in the region and the largest construction materials retail franchise in the form of Disensa.

Understandably, the likes of Cemex, Cementos Argos, Votorantim and others might take exception to some of this. For example, Cemex reported net sales in excess of US$6bn in Latin America and the Caribbean, and Votorantim reported net sales of around US$4.8bn in 2024. Yet, Holcim’s claim of regional spread does carry some weight. It purchased Comacsa and Mixercon in Peru and assets from Cemex in Guatemala in 2024. At the end of the year the group owned integrated cement plants in Argentina, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Mexico and Peru. Plus it held grinding plants in the French Antilles and Nicaragua. All of these are majority-owned subsidiaries, often also with aggregate, ready-mixed concrete and building systems businesses. Holcim may have sold up in Brazil in 2022 but it still holds a relatively intact network in Latin America.

Graph 1: Grey cement production in Mexico, 2020 - April 2025, rolling 12 months. Source: National Institute of Statistics and Geography (INEGI).

As for the market, Holcim reported modest but growing net sales in Latin America in 2024, despite lower sales volumes plus elections in Mexico, economic issues in Argentina and political instability in Ecuador. Focusing on Mexico, local cement volumes were said to be stable, aided by a recovery in bagged cement in spite of bulk sales falling on the back of fewer infrastructure projects. Holcim Mexico also spent US$55m on building a new grinding unit at its integrated Macuspana plant in Tabasco. Once complete, the update will increase the site’s capacity by 0.5Mt/yr to 1.5Mt/yr.

Cemex, the market leader in Mexico, released more direct information. It saw its sales and operating earnings fall in 2024. This was blamed on a poor second half to the year following the presidential election in June 2024. GCC’s sales fell more sharply in 2024 and this was blamed on “energy infrastructure limitations and permitting delays in Juarez.” So far in 2025, in the first quarter, the pain in Mexico for the construction sector has continued, with both Cemex and GCC noting strong falls in cement volumes and sales due to a slowdown in industrial demand. Holcim has not reported on Mexico directly so far in 2025 only saying that sales have risen in local currencies in Latin America as a whole in the first quarter. Cemex started a cost cutting exercise in February 2025 in response to the situation. Graph 1 above shows Mexican cement production. Although it should be noted that Cemex and GCC still run subsidiaries in the US. Holcim now does not. Rolling 12-month cement production figures in Mexico started falling in September 2024 and continued to do so until April 2025, the date of the latest data provided by the National Institute of Statistics and Geography.

Despite falling volumes though, the price of cement in Mexico remains high by international standards. At the start of July 2025 the National Association of Independent Businessmen (ANEI) raised the alarm that distributors had warned of an 8% price rise on the way. It’s in this environment that news stories such as Bolivia-based Empresa Pública de Cementos Bolivia (ECEBOL), a producer in a landlocked and mountainous country, preparing to export clinker to Mexico from July 2025 start to sound credible. Sales may have been down in Mexico in 2024 but earnings and margins remain high. In the medium-to-longer term the country looks even more promising, with plenty of scope for development and building products. Ditto the rest of Latin America.

One way a multinational heavy building materials company with a presence in sustainability-obsessed Europe might gain an advantage in the region is by using its knowledge to capture the easier decarbonisation routes first. This is exactly the route Holcim and Holcim Mexico seem to be taking by promoting lower carbon cement and concrete products, and by growing the recycling of demolition materials. Another option, of course, is that Holcim is bolstering its Latin America division ahead of a potential divestment. Either way, Holcim is presenting a plan for growth in its new form, shorn of North America. It’s all to play for.

Bolivia: Fábrica Nacional de Cemento (FANCESA) will temporarily halt production due to a diesel shortage, which it attributed to the country’s ‘difficult economic, political, and social situation’, according to La Razón newspaper.  The company said it had not received supplies since mid-May 2025. In a statement, it said that it faces a “severe restriction on the supply of diesel, a fundamental element for the operation of our production equipment and for the transportation of cement.”

The producer added that it had written to Yacimientos Petrolíferos Fiscales Bolivianos and the National Hydrocarbons Agency requesting urgent fuel delivery. It expressed apologies to customers and partners and said it would resume operations immediately once fuel supplies returned. The government said the shortage stemmed from roadblocks preventing the transport of diesel and gasoline.

Bolivia: Empresa Pública de Cementos Bolivia (ECEBOL) will begin exporting 12,500t/month of clinker to Mexico from June or July 2025, following the finalisation of a supply contract in late May 2025, according to Ahora El Pueblo newspaper.

Technical manager Aldo Olivera said that the deal will be Ecebol’s first clinker export contract, and that negotiations have been underway for several months. Oliviera said that the company hoped to achieve between US$7m - 8m over the course of the contract.

Brazil: Votorantim Cimentos grew its revenue and earnings in 2024 but its net income dropped significantly due to interest rate volatility. It noted ‘positive performance’ in its Europe and Asia region and a stable market in Brazil. It attributed its mounting earnings to its balanced portfolio, revenue in Europe and Asia, operational efficiency, reduced costs and new business.

The group’s net revenue grew by 3% year-on-year to US$4.69bn in 2024 from US$4.53bn in 2023. However, revenue fell slightly in local currencies due to negative exchange effects, particularly in North America. Cement sales volumes rose by 1% to 35.4Mt from 34.9Mt. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 16% to US$1.14bn from US$0.99bn. Earnings rose in all regions except for Latin America due to a ‘challenging’ market in Uruguay and lower prices in Bolivia. Despite this, its adjusted net income dropped by 17% to US$383m from US$461m.

“We ended the year with record-high operating results, supported by our geographic, product and business diversification, in line with our strategic mandate,” said Osvaldo Ayres, the group’s global CEO. The company invested over US$550m in 2024 towards decarbonisation, competitiveness and new businesses. A further US$880m investment plan in Brazil to 2028 was announced in early 2024. Ongoing projects include upgrades supporting higher thermal substitution rates at the Xambioá plant in Tocantins state and the Salto de Pirapora plant in São Paulo. A new 1Mt/yr cement grinding unit is being built at the Salto de Pirapora site. Construction of this project is scheduled for completion in the second-half of 2025. A new 1Mt/yr cement grinding unit was also announced at the Edealina plant in Goiás. This project is expected to be completed in the first half of 2026.

Votorantim also revealed that it paid around US$190m to the Administrative Council for Economic Defense (CADE) at the end of 2024 in connection with an agreement to end all administrative and judicial litigation. It said “We definitively resolved all pending disputes with CADE. We did not acknowledge, at any time, having committed any unlawful act or engaged in any anticompetitive behaviour.”

Bolivia: Bolivia recorded a 2.7% year-on-year increase in cement production and sales in August 2024. According to the National Statistics Institute, production reached 2.6Mt from January - August 2024, up from 2.53Mt in the same period in 2023. Santa Cruz produced 699,062t of cement, followed by La Paz with 679,317t, Chuquisaca with 510,841t, Cochabamba with 384,329t, Oruro with 214,660t and Tarija with 150,068t.

Marcelo Morales, general manager of Itacamba Cemento, noted a year-on-year increase of 3% in domestic demand, with 2.6Mt of cement consumed as of August 2024, saying that the growth was positive ‘considering the current economic situation’.

General manager of the Bolivian Institute of Cement and Concrete, Marcelo Alfaro, also mentioned that Santa Cruz, La Paz and Cochabamba collectively account for about 70% of cement sales in Bolivia, according to La Razón newspaper. The cement industry's installed capacity reportedly stands at 10Mt/yr and the country is facing challenges exporting cement, as neighbouring countries already produce their own.

Bolivia: The Viacha cement plant, operated by Sociedad Boliviana de Cemento (Soboce), has launched a pilot to co-process discarded electrical and electronic equipment into alternative fuels. This initiative, developed in coordination with the Ministry of Environment and Water, involves the management of 133t of materials. The process includes converting discarded plastics with brominated flame retardants into energy for the plant.

CEO of Soboce, Francisco Shwortshik, said "Viacha has all the licenses and environmental authorisations for the co-processing of alternative fuels. Today we are witnessing a historic milestone for the industry, because it marks the beginning of the era of alternative fuels, as a sustainable environmental solution for the country."

Bolivia: Cement exports from Bolivia have dropped significantly, falling from US$10.5m in 2017 to just US$0.2m in 2023, as reported by the National Institute of Statistics and the Bolivian Institute of Foreign Trade (IBCE). Bolivia’s main export market is Paraguay, with over 95% of cement exports heading there. The decline reportedly began when the Paraguayan government started to protect its local industry by limiting imports, according to CE NoticiasFinancieras.

Bolivia: National cement production reached a record 4Mt in 2023, despite a noted decline in exports, according to the Bolivian Institute of Foreign Trade (IBCE). Santa Cruz contributed 27.4% to the total cement output, followed closely by La Paz with 26.8%, and Chuquisaca at 18.3%. According to Noticias Financieras News, this output is largely due to investments by cement companies in Santa Cruz, such as Itacamba's US$220m investment in a new plant in 2016, which has a production capacity of 870,000t/yr. Other firms like Soboce and Fancesa have also invested in the region. The construction industry in Santa Cruz grew by 3% in 2023, although this was a decrease in growth rate compared to previous years.

Bolivia: The Bolivian Attorney General’s Office says that is open to meeting representatives of Sociedad Boliviana de Cemento (SOBOCE) in order to negotiate a ‘better arrangement’ following Bolivia’s nationalisation of a stake in SOBOCE subsidiary Fábrica Nacional de Cementos (FANCESA) by supreme decree in 2010. SOBOCE owes FANCESA US$108m in damages for unfair competition since that time.

SOBOCE said "SOBOCE, together with its shareholders of Grupo Gloria del Peru, will continue to resort to judicial and/or arbitration channels (national or international) for the recognition of their rights. We believe in justice and in the legitimate right that we have, since the Bolivian Constitution guarantees the payment of compensation in case of expropriation."

Bolivia: The Permanent Court of Arbitration has found itself ‘without jurisdiction’ to resolve a claim by Consorcio Cementero del Sur, Grupo de Inversiones Gloria Bolivia, SOBOCE and Yura Inversiones Bolivia against the Bolivian government over the nationalisation of a stake in FANCESA. Local press has reported that Bolivian Attorney General’s Office welcomed the finding as a ‘resolution of the case in favour of the Bolivian state.’