Cemex expands into SE Asia

Cemex expands into SE Asia

MONTERREY, Mexico (Dow Jones): Mexican cement giant Cemex SA will continue to expand its presence in southeast Asia targeting what it sees as major growth potential in the region, company chairman Lorenzo Zambrano said on Thursday.

At a press conference following Cemex's annual shareholders assembly, Zambrano said the only restriction is Cemex's self-set goal of keeping interest coverage and debt to operating flows at 3.3 times.

He also said the company plans to lower debt this year by $300 million.

Zambrano said Cemex aims to increase its stake in Indonesia's majority state-owned cement-maker PT Semen Gresik to 25 percent by the end of this year, although the company's ultimate goal is to acquire control of Semen Gresik.

He said the Indonesian government could offer to sell its shares in Semen Gresik and that Cemex was interested in buying "whatever they want to sell us."

With per capita cement consumption in Indonesia a third of what it is in Mexico, prospects for growth in the market are encouraging. "It would be very important and worth the risk taken," Zambrano added.