Grupo Hotelero Islazul
Barceló Solymar
Cervecería Centroamericana S.A.
Agexport
Herbalife
CUN-HAV Enjoy Travel Group
Los Portales
INTERFER
Walmart
Instituto Hondureño de Turismo
Intecap
Centro Nacional de Cirugía de Mínimo Acceso de Cuba
Cubasol
AVA Resorts
MAD-HAV Enjoy Travel Group
Realidad Turística
blackanddecker
Servicios Médicos Cubanos
INOR
Tigo
Nestle

Cementos Progreso Grows In Central America

Date:

Share:

Instituto Hondureño de Turismo
INOR
AVA Resorts
Servicios Médicos Cubanos
INTERFER
Centro Nacional de Cirugía de Mínimo Acceso de Cuba
blackanddecker
Realidad Turística
Cervecería Centroamericana S.A.
Intecap
Los Portales
Herbalife
Nestle
Grupo Hotelero Islazul

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. (https://www.globalcement.com/news/item/13485-cementos-progreso-grows-in-central-america)

Barceló Solymar
Centro Nacional de Cirugía de Mínimo Acceso de Cuba
Los Portales
Walmart
INOR
CUN-HAV Enjoy Travel Group
Nestle
AVA Resorts
Agexport
Cervecería Centroamericana S.A.
Tigo
Realidad Turística
Cubasol
Servicios Médicos Cubanos
blackanddecker
INTERFER
Grupo Hotelero Islazul
Herbalife
Intecap
Instituto Hondureño de Turismo
MAD-HAV Enjoy Travel Group
Barcelo Guatemala City
Hotel Barcelo Solymar
Blue Diamond Resorts
Henkel Latinoamerica
Revista Colombiana de Turismo Passport
Maggi - GLUTEN-FREE
Havanatur
Intecap
INTERFER
Cubacel
Tigo
Hotel Holiday Inn Guatemala
AirEuropa

Subscribe to our magazine

━ more like this

Pole Dancing in Israel: A New Dimension with BlueDance.co.il

In recent years, pole dancing has experienced a remarkable transformation, shifting from a misunderstood niche to a popular activity combining fitness, self-expression, and empowerment....

A New Luxury Hotel Just Opened on An Idyllic Beach in Cancun, Mexico — And We Were the First to Stay

Waldorf Astoria Cancun opened to the public on Nov. 1, the brand's first new build in Mexico, with two waterfront pools and a fantastic...

Pan American Health Organization Launches Interactive Dashboard on Avian Influenza in The Americas

To monitor cases of avian influenza A (H5N1) in the Americas, the Pan American Health Organization (PAHO) launched an interactive dashboard on the web...

This North East African Country Welcomes Over 15.7 Million Tourists Last Year and An Addition 40,000 New Hotel Rooms are in Pipeline

Estimated reading time: 3 minutes In a year marked by global uncertainties and regional geopolitical challenges, Egypt’s tourism sector achieved an impressive milestone, welcoming a...

Nicaragua Presents Its New Interoceanic Canal Route to China and Seeks to Compete with Panama

Estimated reading time: 8 minutes With a length of 445 kilometers, in a second attempt, the Nicaraguan president, Daniel Ortega, presents China with a new...
Barcelo Guatemala City
Henkel Latinoamerica
Cubacel
INTERFER
AirEuropa
Intecap
Revista Colombiana de Turismo Passport
Hotel Barcelo Solymar
Havanatur
Hotel Holiday Inn Guatemala
Blue Diamond Resorts
Maggi - GLUTEN-FREE

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Herbalife
Servicios Médicos Cubanos
Centro Nacional de Cirugía de Mínimo Acceso de Cuba
INOR
Agexport
Walmart
Cubasol
Instituto Hondureño de Turismo
AVA Resorts
Realidad Turística
INTERFER
Barceló Solymar
Los Portales
Cervecería Centroamericana S.A.
blackanddecker
Tigo
Nestle
Grupo Hotelero Islazul
Intecap
MAD-HAV Enjoy Travel Group