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CEMEX temporarily halts production in Mexico

Published by , Deputy Editor
World Cement,

CEMEX has announced that, in accordance with a decree issued by the Health Ministry of Mexico in response to the COVID-19 pandemic, it has temporarily halted production and certain related activities in Mexico until 30 April 2020.

CEMEX has maintained constant communication with the Mexican Federal Government in case there is an update in the decree to determine if any of CEMEX’s products or services are needed to ensure the continuity of essential activities as defined in the decree. The company will be ready to resume operations, meeting the strictest requirements of health and safety, if the federal authorities decide that the construction industry should restart earlier.

“For CEMEX, the health and safety of our employees, contractors, suppliers, customers, and communities, is a top priority. As soon as the COVID-19 threat emerged, we activated our Rapid Response Teams to implement preventive measures in response to this unprecedented health crisis,” said Fernando A. Gonzalez, CEO of CEMEX.

"I want to express our full support to the Mexican Government and society during this difficult time. We are aware of the challenge we face, but I am confident that we will overcome this situation together.”

CEMEX’s commercial teams around the world are in constant contact with their clients remotely, effectively leveraging CEMEX Go, the company’s digital platform. Currently, 90% of CEMEX’s customers worldwide are already using CEMEX Go.

The company had also identified US$200 million in cost-saving initiatives for this year, which are expected to be fully realised in 2020. CEMEX is also evaluating the delay of certain capital expenditures that had been planned for this year, among other measures.

Recently, CEMEX has improved its financial position by withdrawing US$1.135 billion under its committed revolving facility and received close to US$500 million from divestments.

Given the uncertain duration, severity and global reach of the COVID-19 situation, CEMEX is withdrawing its prior 2020 guidance. The company is closely monitoring the global COVID-19 pandemic and will provide an update during its first-quarter 2020 results call.

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