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Strong US demand boost GCC’s sales

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World Cement,

Strong growth in the US in October and November has helped push cement sales up 18.2% in the first eleven months of 2017 at Grupo Cementos de Chihuahua (GCC). The Mexico-based company derives around 75% from its US operations.

October and November US cement sales were up 31.2% compared to the same period in 2016, the company said in a press release, reflecting strong demand and GCC’s acquisitions in Texas and New Mexico last year.

GCC acquired a cement plant in Odessa Texas, as well as cement terminals in Amarillo and El Paso, Texas, as part of an agreement with CEMEX. Concrete, aggregates, asphalt, and building materials businesses in El Paso, Texas, and Las Cruces, New Mexico, were also included in the deal.

The deal was valued at US$306 million.

The company’s Mexican volumes also grew in October and November, by 10.2%, rebounding after falls earlier in the year. For the full year to date, the company’s cement sales in Mexico fell 1.6%.

“GCC reached record cement sales volumes as a result of strong demand and a high level of backlog in our core markets, especially West Texas, Colorado, South Dakota, and the state of Chihuahua,” said company CEO, Enrique Escalante.

“In addition, builders and contractors enjoyed favourable weather in October and November, which offset the effect of some weather and project-related delays in 3Q17. As a result, we are confident that GCC will significantly exceed our US volume outlook for the year.”

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US cement news