Cemex stops operations in Mexico due to COVID-19

Cemex stops operations in Mexico due to COVID-19

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MEXICO — Cemex just announced the suspension of production in its 15 plants that it operates in Mexico, until April 30th, in the face of the health emergency due to the coronavirus.

In a statement sent to the Mexican Stock Exchange, the Mexican cement company reported that in addition to these measures, it identified initiatives to reduce costs by US$200 million by 2020, as well as the postponement of investments in fixed assets that had been contemplated this year.

The company stressed as well that it has maintained constant communication with the Mexican Government to determine if any of its products or services are necessary to guarantee the continuity of the essential activities defined in the decree.

The company led by Fernando González Olivieri detailed that it recently improved its financial situation by having US$1 billion under a committed revolving credit contract, in addition to receiving nearly US$$500 million from the sale of assets.

For his part, Gonzalez Olivieri pointed out that given the duration, severity and scope of COVID-19 in the world, "Cemex's 2020 estimates are no longer valid."

Source: El Financiero