Displaying items by tag: Panama

Panama: Waste management company EMG has won a contract with Cemex Panama for the supply of solid recovered fuel (SRF) derived from commercial and industrial waste, beginning in early 2023. EMG is working to expand its SRF production capacity to 18,000t/yr from the start of the supply contract.

Panama: Cemex exported 3000t of bagged Ordinary Portland Cement to Jamaica from the Bahía Las Minas Grain Terminal in Colón. Data from the Ministry of Commerce and Industries shows that the company started exporting cement in January 2021 and recorded sales of over US$17m in 2021. In the first two months of 2022 Panama exported OPC to countries including Jamaica, the Bahamas, Guyana, Bonaire, Cuba and Curaçao.

Guyana: The Customs Anti-Narcotics Unit (CANU) has confiscated a US$68,300 illegal cannabis shipment from a Panamanian cement carrier ship that was scheduled to depart Port Georgetown on 21 January 2022. CANU says that the value of the substance would have been significantly higher at its destination. It has detained the ship’s captain, engineer and senior officers.

We start 2022 with the news that Cemex is selling up to Cementos Progreso in Costa Rica and El Salvador. On 20 December 2021 Cemex announced that it was selling one integrated cement plant, one grinding plant, seven ready-mix concrete plants, one aggregate quarry and one terminal in Costa Rica and one terminal in El Salvador. The sale is valued at around US$335m with an expected completion date in the first half of 2022 subject to regulatory approval.

This sale is noteworthy because it concerns Mexico-based Cemex selling off assets in its ‘back yard’ of Central America. Once the sale completes it will retain operations in Panama, Nicaragua, Guatemala and Colombia under its Cemex LatAm subsidiary. It will also continue to operate in the Caribbean in the Dominican Republic, Jamaica and Puerto Rico. Previous divestments by Cemex over the last five years or so have tended to focus on piecemeal (or bolt-off) divestments in the US and Europe. This latest sale could be viewed in a similar way if Central America and the Caribbean are seen as a region rather than individual countries. For its part Cemex describes the divestment as part of its ‘Operation Resilience’ plan to optimise its global portfolio.

Why it chose to sell up in Costa Rica is curious given that Cemex LatAm’s cement sales volumes for the region were reported as ‘flat’ in 2019 with the exception of Colombia and El Salvador. 2020 was then a shock, like almost everywhere else, as coronavirus caused disruption reducing sales volumes. 2021 saw recovery in all of Cemex LatAm’s national markets over the first nine months. Notably, both Cemex’s revenue and operational earnings in Costa Rica grew when comparing the first nine months of 2019, before the pandemic, to the same period in 2021, unlike Colombia and Panama. For the third quarter of 2021 Cemex said that growing cement sales volumes in Costa Rica had been driven by infrastructure and housing sectors. It also added that “Our cement footprint in the country is also a very relevant component of our regional trading network. We continued exporting during the quarter, mainly to our operations in Nicaragua.” In may be coincidence but it was interesting timing to add a comment like that.

From Cementos Progreso’s perspective the new assets in Costa Rica and El Salvador are part of an ongoing expansion phase outside of its home base. At home in Guatemala the company operates three integrated plants. The third, the San Gabriel plant, started up in 2019. In the same year the company purchased Cemento Interoceanico and its grinding plant in Panama. Then in July 2021 the group commissioned its new Belmopan grinding plant in Belize as part of its Cementos Rocafuerte subsidiary. The new proposed acquisitions in Costa Rica and El Salvador start to fill in the gaps in Cementos Progreso’s network between Guatemala and Panama. The price seems on the high side for a 0.9Mt/yr integrated plant and a 0.9Mt/yr grinding unit. Yet the associated quarry, concrete plants, terminals and, crucially, the location may have made it one well worth paying. For comparison Peru-based Unacem agreed to purchase a grinding plant from CBB in Chile this week for around US$30m. Back in 2013 Lafarge sold assets in Honduras, including an integrated plant and a grinding unit, to Cementos Argos for Euro232m.

Both parties may do well out of this transaction. Cemex continues to show that it is fully prepared to sell assets anywhere as it sharpens up its operations. Cementos Progreso meanwhile is turning itself into a regional player to watch.

Panama: Panamanian cement producers reused cooling water used in cement grinding at a rate of 88 – 100% nationally in 2020. The development is part of a concerted water conservation effort first launched by Argos Panamá. The La Estrella newspaper has reported that Cementos Panamá’s Quebrancha grinding plant reduced its water consumption by 88% in five years, to 59,600m3 from 477,000m3 in 2015. The plant’s cement now has a water consumption of 100l/t, compared to 537l/t in 2015.

Honduras/Panama: Cementos Argos has appointed Gustavo Adolfo Uribe as its manager in Panama and Central America. He has been succeeded by Luis Eduardo Tovar as the manager in Honduras.

Uribe studied civil engineering at the School of Engineering of Antioquia (EIA) and followed this with graduate training in economics at the University of Los Andes in Colombia and business at the École Supérieure des Sciences Economiques et Commerciales (ESSEC). He has worked for Argos for over 15 years in a variety of management roles, including being the general director for the business in Honduras.

Tovar studied business at the University of Lincoln in the UK. He has also worked for Argos for over 15 years in various managerial and strategic roles.

Colombia: Austria-based Mondi Group plans to open its first South American paper bags plant in Cartagena in January 2021. The unit will start with one production line with a capacity of approximately 50m bags/yr. The bags will be targeted at the cement, chemical and food industries. The group said that the plant is located in a free-trade zone with good access to ports in Panama, the east coast of the US, the Gulf of Mexico and other Caribbean ports.

"Our global network already includes 39 plants across 22 countries. We are excited to be expanding our footprint to Colombia, helping us to provide innovative, sustainable and customer-focused paper packaging solutions to customers in South America who share our commitment to quality," said Claudio Fedalto, Chief Operating Officer Paper Bags, Mondi.

Colombia: Cemex subsidiary Cemex Latam Holdings (CLH) recorded net sales of US$571m in the first nine months of 2020 were down by 24% year-on-year from US$752m in the corresponding period of 2019. Operating earnings fell by 14% to US$69.0m from US$87.0m, while consolidated cement volumes fell by 20% to 3.92Mt from 4.89Mt.

Jesus Gonzalez, chief executive officer (CEO) of CLH said, “Our operations could run relatively normally during the third quarter in Colombia, Guatemala, Nicaragua and El Salvador, while restrictions impacted in Panama and to a lesser degree in Costa Rica.” He added that the company improved its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) by 19% on a like-for-like basis to US$51m in the third quarter of 2020.

Colombia: Cementos Argos says that 70% of its total cement orders between 1 January 2020 and 9 July 2020 were placed online via its Argos One automated booking, order management and delivery monitoring platform. The platform handled 81% of orders of cement in the Dominican Republic, 39% in the US, 34% in Honduras and 19% in Panama. The company said, “Argos One has become even more relevant in the current context and will continue to evolve in function to continue its purpose of providing extraordinary solutions to clients.”

Panama: Grupo Argos subsidiary Cementos Argos has announced the “gradual reactivation” of its operations in Panama. The first stage of the post-coronavirus start of operations consists of “supply to prioritised public infrastructure works and sale to hardware stores,” begun on 9 June 2020. Presently the company is awaiting clearance from the Panamanian government to resume deliveries to “construction customers and other types of projects.”