Cemex is addressing its supply chain to meet cement shortages experienced throughout the West.
Specifically, Cemex is recommissioning a kiln at a cement plant in northwest Mexico as a means to alleviate cement shortages and project delays in California, Arizona and Nevada.
According to Cemex, it is investing about $15 million to recommission a kiln with a production capacity of about 1 million tons of cement annually at the CPN cement plant in Hermosillo, Sonora, Mexico. The investment should create more than 130 jobs in Mexico, Cemex says.
Using its distribution network in the region, Cemex seeks to consistently supply portland cement through its terminals in California, Arizona and Nevada.
“Many cement customers in California, Arizona and Nevada have been impacted by supply constraints this past year,” says Joel Galassini, Cemex USA executive vice president of cement commercial. “The decision to recommission this kiln was made with our customers top of mind, to give them reliable access through a local supply chain to help meet their growing needs. Our unique network of production facilities in this region allows us to make these types of investments that will have a meaningful impact on meeting our customers’ needs.”
Cemex says it currently supplies more than 3 million tons of cement each year across California, Arizona and Nevada from its cement plant in Victorville, California, as well as from and seaborne imports.
The kiln restart at Mexico’s CPN plant increased efficiencies at the Victorville cement plant in California, Cemex says, and other supply chain modifications are planned to help the company deliver hundreds of thousands of additional tons of cement through its local supply chain.
“With the kiln going back into operation, we are leveraging our strong network and local assets at Cemex to help meet the increased construction needs in the region,” says David Nabavi, Cemex USA regional president of Arizona. “We strive to provide our customers a superior customer experience and deliver the materials they need when they need them.”
Adds Francisco Rivera, the regional president of California at Cemex USA: “We are excited to build greater synergies with our Mexican operations to strengthen our U.S. cement supply chain and help our customers avoid or mitigate any potential delays to their projects in 2021.”
The recommissioned kiln is expected to be fully operational and delivering cement by the second quarter of 2021, Cemex says. For now, Cemex says it continues to import cement through its California marine terminals to help meet customer supply requirements.
