CEMEX to Exploit Nearshoring Opportunities in 2023

CEMEX, one of the most important cement and concrete companies in the world, remains optimistic about its growth path as it sees opportunities in nearshoring in Mexico, as well as tax stimuli in Europe and the US. 

CEMEX said that it expects growth in demand for its products in the medium term. The company weathered inflation with its pricing strategy, but despite these efforts, high inflation and disruptions in the supply chain have dampened profit margins. “In the past three years, our business has proven its immense resilience in the face of a global pandemic, historic inflation and supply chain disruptions. I am incredibly proud of how we navigated the extraordinary developments of the last few years,” said Fernando González, CEO, CEMEX. 

The company identified three markets that will boost its sales in the medium term. The first is the US, which issued the Infrastructure Investment and Jobs Act that includes US$110 billion of incremental spending for highways and streets, projects that require a great deal of cement. The second is Europe, where authorities approved an investment of over US$777.4 billion from the Recovery Fund to invest in green technologies, clean energy and transportation projects, as well as refurbishing buildings and upgrading digital infrastructure. CEMEX expects this to be a driver of the demand for construction materials. The third is Mexico, which owing to nearshoring is attracting more foreign companies, which CEMEX believes will increase the demand for manufacturing and industrial construction.

CEMEX also announced that it will increase its climate efforts for 2030, especially in the reduction of its CO2 emissions. The company said it will reduce 47 percent of its CO2 emissions per ton of cement and committed to reaching 65 percent consumption of clean energy by 2030. The company said it is convinced that its climate responsibility plan is feasible. “Our products are essential for the well-being and development of humanity. The journey to decarbonization can be profitable, as our customers reward those companies that are leaders in this global transition,” said González. 

In November 2022, the company became one the first concrete companies to have its decarbonization targets verified by the Science Based Targets initiative, a multilateral initiative to tackle climate change with a scientific approach. The company will align its objectives with the initiative’s 1.5C° scenario. 

CEMEX also offers products with an environmental approach such as Vertua, which aims to decarbonize the construction industry, as reported by MBN.