Fri | Aug 18, 2017

Cemex seeks US$170m for greener global operations

Published:Wednesday | May 11, 2016 | 5:00 AM

Cement conglomerate Cemex wants to raise up to US$170 million, in part from the private sector financing arm of the World Bank, the IFC, to improve environmental standards across its global operations, which includes Jamaica.

Cemex based in Mexico holds a 39.5 per cent stake, or the largest single investment in Trinidad Cement Limited (TCL), the parent company of Kingston-based Caribbean Cement Company Limited. Its dealings in Jamaica also includes mining aggregates through subsidiary Cemex Jamaica.

"IFC is considering a loan of up to US$120 million with an additional blended finance tranche of up to US$50 million, to support Cemex sustainable investment programme in emerging markets," the agency said in notices posted on its website this month.

Cemex is a global building materials company that operates in more than 50 countries throughout the Americas, Europe, Africa, the Middle East, and Asia. As of December 2015, Cemex had 43,117 employees, 56 cement plants and an additional 12 cement plants in which it has a minority participation, 1,608 ready-mix-concrete facilities, 305 aggregate quarries, 242 distribution centres and 61 marine terminals, as well as two research and development centres.

"IFC financing will support projects to enhance improvements in environmental performance at Cemex's operations, with more than two thirds of the funds allocated to projects aimed at the company's greenhouse gas emissions reduction.

The remaining one third of the funds will cover overall air emission control improvements," said the IFC.

The investment will ultimately help Cemex achieve its 2020 sustainability environmental target by implementing efficiency projects, reducing its carbon footprint and controlling and reducing dust particles released into the atmosphere.

Cemex wants to invest at least 60 per cent of IFC funds towards climate projects.

The project document did not identify the precise geographic territories for project implementation.

steven.jackson@gleanerjm.com