Mexico's Cemex Forms Aggregates Joint Venture in U.S.
By Anthony Harrup
Mexican cement maker Cemex has agreed to form a joint venture with U.S. sand and gravel supplier Couch Aggregates and marine distributor Premier Holdings as it seeks to bolster growth in the U.S. market.
"This joint-venture will strengthen Cemex's aggregate reserves with the production, distribution, and sale of sand, gravel, and limestone in the mid-south," Monterrey, Nuevo Leon-based Cemex said in a release. Cemex didn't disclose the amount of its investment in the joint venture.
Couch Aggregates operates in Alabama and the Florida panhandle. Premier operates Gulf Coast marine terminals for distribution of heavy building materials.
Cemex has been focusing on the U.S. market in recent years. Chief Executive Fernando González said in March that the U.S. accounted for about 55% of Cemex's investments in the past three years, and that could rise to about two-thirds. He said investment opportunities include aggregates, buying small to mid-size businesses, and cement.
Cemex said Monday that the U.S. accounts for 29% of its earnings before interest, taxes, depreciation and amortization, and that it intends to raise that to 40% in the medium term.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
July 15, 2024 11:40 ET (15:40 GMT)
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