CEMEX seek to alleviate US cement shortage
Company strengthening supply chain to support US operations in efforts to address cement shortage
CEMEX have announced plans to optimize their North American supply chain to help address cement shortages and project delays throughout the western United States.
As part of the optimization, the company is investing approximately US$15 million to recommission a kiln at the CPN cement plant in Hermosillo, Sonora, in north-west Mexico.
The recommissioned kiln, which will have an annual production capacity of around 1 million tons, is expected to be fully operational and delivering cement by the second quarter of 2021.
‘Many cement customers in California, Arizona and Nevada have been impacted by supply constraints this past year,’ explained Joel Galassini, executive vice-president of cement commercial at CEMEX USA.
‘Our unique network of production facilities in this region allows us to make these types of investments that will have a meaningful impact on meeting our customers’ needs.’
Using their extensive distribution network in the region, CEMEX say they are seeking to consistently supply Portland cement through their terminals in California, Arizona, and Nevada.
Currently, the company supplies more than 3 million tons of cement each year across these three states from its Victorville cement plant in California and sea-borne imports.
The kiln restart at the CPN plant in Mexico along with increased efficiencies at the Victorville cement plant, as well as other supply chain modifications, will help CEMEX deliver hundreds of thousands of additional tons of cement through their local supply chain.
‘With the kiln going back into operation, we are leveraging our strong network and local assets to help meet increased construction needs in the region,’ commented David Nabavi, regional president for the Arizona region at CEMEX USA.
His counterpart for the California region, Francisco Rivera, added: ‘We are excited to build greater synergies with our Mexican operations, to strengthen our US cement supply chain and help our customers avoid or mitigate any potential delays to their projects in 2021.’