Vulcan Materials in Legal Dispute With CEMEX, Mexican Government

US-based leading aggregates company Vulcan Materials is in a two-front legal dispute with both CEMEX and the Mexican government. Military forces entered the company’s Punta Venado port in Quintana Roo on March 14, 2023. At the same time, the company also mentioned the presence of CEMEX workers, escorted by security bodies. 

According to Vulcan Materials, the presence of CEMEX’s workers is illegal. The company admitted that there was a previous contract that allowed CEMEX to lease a portion of the port. However, this expired on Dec. 31, 2022, without any renewal. Vulcan highlighted that it notified CEMEX that it would be necessary to negotiate a new contract. “Rather than looking for a mutually agreeable solution, CEMEX officers threatened to seek the aid of the Mexican government, including its armed forces, to use Vulcan's port facilities,” Vulcan Materials said in a statement, adding that it is still open to renegotiating the lease agreement. 

On the other hand, CEMEX argues that it still has the right to use the Punta Venado terminal, even after the termination of the contract. It also mentioned that it filed an amparo to continue using the facilities after facing issues accessing them in late 2022. In response, it obtained a contempt of court order against Sac-Tun for attempting to obstruct its access to the terminal. CEMEX noted that the Quintana Roo State Prosecutor's Office supported its re-entry into the Punta Venado terminal on Mar. 14, 2023. CEMEX says that authorities notified the parties. 

According to Vulcan Materials, neither the military nor the police presented any court order, warrant or legal justification for the forceful entry to the company’s facilities. “Contrary to CEMEX's position, a Mexican federal court ordered CEMEX to vacate the property and another Mexican federal court order requires military and police forces to leave the property immediately,” reads CEMEX report. 

The US State Department said it was concerned about the fair treatment of US companies in Mexico. “Cases like these have the potential to impact our ability to achieve our shared vision for improving livelihoods in one of Mexico’s most economically disadvantaged regions. It also impacts Mexico’s efforts to attract future investments,” the department stated.  

Mexican President López Obrador said that his government’s intention is not scaring away investors but to protect the environment, arguing that Vulcan Materials was destroying the environment and did not respect the agreements it made with Mexico. “We cannot accept or tolerate this because we would be betraying the Mexican people; we cannot allow that,” López Obrador said during his daily morning conference.