CEMEX to activate second kiln to boost cement supply in Arizona, California, and Nevada
CEMEX announced today that following its successful restart of one kiln at its CPN cement plant in northwest Mexico in 2021, it is now recommissioning a second kiln at the plant. This investment will leverage CEMEX’s unparalleled regional trading network to meet growing cement demand throughout the western United States. Once operational, the recommissioned kiln, coupled with some supply chain enhancements, is expected to provide nearly 800,000 additional metric tons of cement for customers across Arizona, California and Nevada.
CEMEX will invest $29 million to recommission the second kiln in CEMEX , Mexico. This investment follows an earlier $15 million capital expenditure to bring on the first kiln in 2021. With the second kiln coming online in the third quarter of 2022, the plant is expected to manufacture approximately 1.5 million metric tons of cement annually with most of the production targeted to bolster cement supply in the western U.S.
“Supply constraints have impacted many cement customers in the region for more than two years, so we are using the global strength of CEMEX to enhance how we operate and to ensure that our customers have dependable and reliable access to the high-quality products they require to meet their growing needs,” said CEMEX USA Executive Vice President—Cement Commercial Joel Galassini. “Our decision last year to reactivate one kiln has alleviated some of the widespread supply issues, but customers require more cement to keep up with growth. By recommissioning a second kiln and utilizing CEMEX’s unique system in North America, we are well-positioned to meet this incremental demand and dependably deliver the products customers need.”
CEMEX’s strong network across the southwestern U.S. consists of its Victorville, Calif. cement plant, 10 strategically located cement terminals, more than 30 aggregates facilities and over 70 ready mix plants. The operations are integral in supporting the construction needs across Arizona, California and Nevada. With the additional cement production at CPN and supply chain optimization which includes the use of a well-established rail network, CEMEX aims to enhance and bolster its steady cement supply.
“Our customers in Arizona and Nevada are working to keep up with the region’s ever-expanding needs, and they require reliable sources of cement to avoid delays,” said CEMEX USA Regional President—Arizona Region David Nabavi. “CEMEX is in a remarkable position where we have the ability to leverage our supply chain and operations across North America to truly make meaningful enhancements and deliver a superior customer experience.”
“We’re excited to build on our unique synergies with our Mexican operations and enhance our U.S. cement supply chain while we work together to help our customers avoid or mitigate potential project delays. We will continue to pursue additional opportunities to further improve supply and production to meet our expectations of continued robust growth in the U.S. market over the medium term,” said CEMEX USA Regional President—California Region Francisco Rivera.
CEMEX is a global building materials company that provides high-quality products and reliable services with a rich history of improving the wellbeing of those it serves through innovative building solutions, efficiency advancements and sustainability efforts. Its U.S. network includes 10 cement plants, close to 50 strategically located cement terminals, nearly 50 aggregate quarries and more than 280 ready-mix concrete plants. CEMEX USA has been repeatedly recognized for its efforts in sustainability and energy management, including earning U.S. EPA ENERGY STAR® Partner of the Year in 2019, 2020 and 2021.