Votorantim to import cement from China

Votorantim Cimentos announced that it will import 100.000 tons of cement per month from China to meet Brazilian shortages.

{reg}The imports will raise the cost of cement in Brazil, but Votorantim said that it will absorb these higher costs. Brazilian cement industry association let it be known that other Brazilian cement producers are considering similar strategies. Brazilian cement plants are producing at full capacity, but shortages still persists.

 

Votorantim decided to import cement from China until its R$3,2 billion investment through 2011 start to bring on higher production capacity for the firm. These investments will ultimately result in a 60% increase in the company's cement output.

The Brazilian cement sector is bringing plants and equipment on-line that had previously been mothballed, due to low demand in the past. reactivating production capacity is, however, taking time. Cement destined for export is also being redirected to meet domestic demand. As a result Brazilian export volumes have fallen 50,9% and amounted to 44 million tons January to August this year, reports PINI.