Construction continues to grow, but there is concern about barriers to imports

The cement office it grew 11% during the first half. It is an indicator that encourages Holcim, a giant in the cement sector, to diversify into new segments of the construction sector: it will open a line of adhesives in its factory in Malagueño (Córdoba) and also plans to dedicate itself to waterproofing.

“When there is financial instability, people turn to concrete, try to build, add value to their home with improvements, take refuge in brick,” explains Christian Dedeu, CEO of Holcim in Argentina. A new line of adhesives could be ready by the end of the year (the company calls them “mortars”). “If we have no problems with imports, that is the deadline“, He says. To develop this production, they need production lines that come from Spain. Half has already been purchased, but the rest is missing. It is an investment of $ 5 million.

Holcim imports 50 million dollars a year for its production. The new regulation of the Central in relation to the use of dollars by industries generates doubts. “We still have no problems accessing spare parts or supplies, but there will likely be more difficulties,” says the executive.

During the first half of the year, the sale of cement has overcome the pre-pandemic and it is recorded that it has not reached since 2017. Holcim has a turnover of 400 million dollars annually and has a stake of approximately 30% in the main input of the construction sector.

“Private private works were already doing well in 2021 and are continuing to do so, and improvements have been added to public works this year,” he explains. He says the price of cement has risen “below the consumer price index (CPI),” which measures headline inflation. Like all companies, they look at the dollar price and observe that “dollar peg has to do with expectations”. It is an official policy tool to try to contain inflation, they reason.

In addition to obstacles with imports, industries also went through the winter with a lack of gas. “There were already cuts planned, because it is about giving priority to residential demand”, details Dede. When there was no gas, the company turned to coca (an oil release). It is to heat their huge kilns where they turn limestone into clinker and then concrete. Holcim also has factories in Jujuy and Mendoza.

Despite talking about Cordoba from the purchase of Minetti, Holcim lives in Switzerland. Since Monday she has been changing her logo and wants to stop being seen only as a cement plant, to turn to building solutions. Her budget is $ 5 million allotted to go out and be with a company that helps her with that diversification goal.

It targets waterproofing and other segments of “gray work”, such as foundations, walls, cladding. Perhaps there may also be paintings on your horizon.

The the disbursement for this year is 40 million dollars for the improvement of production processess, expansion of the subsidiary Geocycle – dedicated to the separation and co-treatment of waste, which is transformed into energy -, in addition to the adhesive plant and new acquisitions. The government winks at the industry with some incentives.

In 2021, Holcim has completed a $ 120 million expansion of its Cordoba facility. The company produces 3.7 million tons of cement annually. Its main focus is the local market, although there are exports to Paraguay. They say that l Cement falls within the “Prices Careful” in the sales channels that the Secretary of Commerce indicates to the company.

Loma Negra, Cementos Avellaneda and Petrochimico Comodoro Rivadavia are competitors of Holcim.