Mexico's cement giant eyes RI

Mexico's cement giant eyes RI

MONTERREY, Mexico (Reuter): Mexico-based Cemex SA, one of the
world's largest cement markers, is taking aim at booming Asia,
most probably Indonesia after previous assaults on the Spanish
and Latin American markets.

According to the company, its first foray could be announced
this quarter. It will not say where, but analysts predict the
initial port of call may be Indonesia, where PT Bakrie & Brothers
has said it is considering forming a joint-venture cement company
with the Mexican firm.

"The capital that we would invest in the first three or four
years to go into Asia will be a small amount ... less than two
percent of the company's ($3.4 billion) equity," Rodrigo Trevino,
CFO at Cemex, told Reuters in a recent interview.

Cemex says it is the world's third largest cement producer.

Wherever the company goes, analysts said it was not clear
whether Cemex would take a minority stake in already existing
plants, build a new plant, or administer the business for a third
party.

"We can capitalize (on our name) for the benefit of all Cemex
shareholders by entering new markets and obtaining administrative
or operating contracts that increase returns on capital," Trevino
said.

Analysts had worried that Cemex's Asia plans would be a major
investment, along the lines of its purchases in Spain, Colombia
and Venezuela that have left it highly leveraged.

Cemex last year went through a major restructuring of some
$2.35 billion in debts, but the company's total debt remains high
at $5.4 billion.

Its Spanish unit Valenciana de Cementos, raised $850 million
in December to refinance debt.