Displaying items by tag: Cemex

Mexico: Cemex has paid 20% of the US$361m in taxes it owes the Mexican government, with the rest due in January 2013.

The company said it made a US$72m payment on 1 March 2012. It said it has an option to extend the January 2013 obligation and opt for 36 instalments instead, a move that would cost the company a bit more.

"Cemex thinks it has adequate provisions to meet the (tax) requirement," the company said in a statement.

In 2008 the Supreme Court overturned a ruling that protected Cemex from paying taxes linked to investments in offshore tax havens. The court cited several articles in Mexico's income tax law that required Mexican companies to pay taxes locally on investments in countries where there are no taxes or where levies are 75% lower than in Mexico.

Venezuela: Venezuela's President Hugo Chávez has authorised the transfer of US$10m to build a new quarry to help stimulate cement production in the country. The executive also greenlighted a measure to change local cement firm Cemex Venezuela's name to Venezolana de Cementos, as well as measures to develop and strengthen the firm.

The Venezuelan government nationalised Cemex Venezuela, formerly operated by Mexican cement maker Cemex in August 2008. The Mexican firm received US$600m in compensation in 2011.

Chávez also said that future investments for the cement sector would aim to develop relevant technology, perform environmental impact studies and improve benefits for cement workers.

Mexico: Cemex Chairman and Chief Executive Lorenzo Zambrano has slammed Mexico's antitrust commission and reiterated that the company intends to appeal a fine for allegedly blocking competitors from bringing cement into Mexico. Earlier in February 2012, the Federal Competition Commission (CFC), fined Cemex US$800,000 following an investigation into a failed attempt by a competitor to import cement via a silo ship in 2004.

"We've done nothing illegal," Zambrano said, adding that Cemex used legal measures to combat, "what I personally consider was going to be contraband." Zambrano charged the CFC with having an 'attitude of vengeance,' that he said Cemex had suffered for some time. "They didn't prove anything but imposed the fine. We're going to appeal and we're going to win," he added.

The antitrust investigation followed a complaint by a group that was blocked from importing cement in Mexico from Russia in 2004. Comercio para el Desarrollo Mexicano (CDM), formed by local entrepreneurs and several foreign partners, was kept from unloading the shipment. The CFC voted 4-1 to fine Cemex for what it said was a boycott. The CFC said that it had determined that Cemex has substantial power in the wholesale market for cement, and that it systematically carried out actions to keep out imported cement, including using its influence in the cement industry chamber.

Zambrano said Cemex's share of the domestic market is below 50%, when in earlier years, after a series of acquisitions, it had been as high as 68%. "Nothing's been said about the millions of tons of cement capacity that have been installed in Mexico by our competitors," he added.

Mexico: Mexico's antitrust commission said it has fined the country's biggest cement company Cemex US$796,000 following an investigation into a failed attempt by a competitor to import cement into Mexico in 2004.

The Federal Competition Commission (CFC) said that the fine was for 'relative monopolistic practices,' which can include displacing competitors from the market.

Cemex said that it had been notified of the ruling, which it considers unfounded, and plans to contest it. "Cemex always acts in strict accordance with the law and will proceed with the legal resources that apply in this case," the company said.

The antitrust investigation followed a complaint by a group that was blocked from importing cement from Russia in 2004. Comercio para el Desarrollo Mexicano (CDM), which had been formed by local entrepreneurs and several foreign partners, was kept from unloading a 26,000t shipment, and had said it intended to import up to 0.5Mt/yr.

Mexico: Cemex has reported rises in its net sales for both the fourth quarter of 2011 and the full year. Geographically this increase for the fourth quarter was due to higher volume and prices in local-currency terms in the United States, northern Europe and Latin America regions. Sales were flat in Mexico, the Mediterranean region and Asia.

For the group as a whole consolidated net sales increased by 6% during the fourth quarter of 2011 to approximately US$3.7bn and increased by 8% for the full year to US$15.1bn versus the comparable periods in 2010. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 13% during the fourth quarter of 2011 to US$542m and increased by 1% for the full year to US$2.3bn versus 2010. The infrastructure and residential sectors were the main drivers of demand in most of its markets.

Fernando A Gonzalez, Executive Vice President of Finance and Administration, said, "This is the fifth consecutive quarter of top-line growth in our results. We are particularly pleased with the quarterly performance of our operations in northern Europe; the South, Central America and Caribbean region; and the United States. Regarding our full-year results, we saw net sales and operating EBITDA growing for the first time in four years."

Net sales in the company's operations in Mexico decreased 9% in the fourth quarter of 2011 to US$818m, compared with US$902m in the fourth quarter of 2010. Operating EBITDA increased by 7% to US$307m versus the same period of 2010.

Cemex's operations in the United States reported net sales of US$682m in the fourth quarter of 2011, up by 19% from the same period in 2010. In northern Europe, net sales increased by 16% to US$1.1bn, compared with US$950m in the fourth quarter of 2010. In the Mediterranean region sales were US$385m, 14% lower versus those in the comparable period of 2010. South, Central America and the Caribbean reported net sales were US$447m during the fourth quarter of 2011, representing an increase of 22% over the same period of 2010.

In Asia net sales were flat reaching US$124m.

UK: A worker was killed in an industrial accident at the Cemex plant in Rugby in the early hours of this morning.

A spokesman for the plant confirmed that a man working for a sub-contractor was killed at the plant and emergency services attended the scene. Police officers and the Health and Safety Executive are currently at the site investigating what happened. Another man suffered a broken arm in the incident and had to be taken to hospital for treatment.

Cemex community affairs manager Ian Southcott said, "Regrettably one person has died and our thoughts and sympathies are with their family and friends. Cemex is cooperating fully with all of the investigations taking place." Southcott refused to reveal any more details about the accident while investigations are on-going.

The cement plant is currently in its annual shutdown period for regular maintenance. There are a number of contractors working on the site as a result. In December 2011 Cemex was fined for a worker's death in 2008 at the same plant.

Bahamas: The Mexican cement giant Cemex has been announced as the primary cement supplier for the Baha Mar tourist complex in Cable Beach, Nassau, Bahamas that is being built by CCA Bahamas Limited. It is expected that the complex will house the largest entertainment centre in the Caribbean and be completed by December 2014.

"This important project, which will generate many construction jobs, gives us great satisfaction because it will contribute to improving the quality of life of many people, which is in line with Cemex's objective of generating wellbeing through quality building solutions," said Carlos González, president of Cemex in the Bahamas.

As the primary supplier, Cemex will provide 110,000t of cement for the first phase of the project, which is currently being built on an area of 1000 acres.

Venezuela: The Venezuelan government has agreed to pay US$600 million to settle a claim from Cemex over the 2008 nationalization of Venezuela's cement sector. The case is one of many which the Hugo Chavez administration is facing after nearly 13 years of sweeping socialist reforms, including widespread nationalisations across the South American OPEC member's economy.

A Venezuelan government statement said the amount corresponded to 76% of the shares in the expropriated local unit but it was less than half the US$1.3bn Cemex had originally sought. "We've reached a favourable deal between both parties," Industry Minister Ricardo Menendez said in the statement. The government will pay US$240m initially, followed by four annual payments of US$90m, he said.

"We are convinced the agreement has been positive for everyone," the Venezuelan Information Ministry statement quoted Jaime Elizondo, Cemex's president for South America and the Caribbean, as saying.

The Chavez government announced the takeover of the cement sector in April 2008, targeting Cemex, Holcim and Lafarge. Lafarge and Holcim agreed to stay on as minority partners. Cemex disputed the case at the World Bank's International Center for Settlement on Investment Disputes. In late 2010, the court recognised Cemex's right to sue for the loss of its assets.