Peru Cement Industry Booms
Peru’s solid economic performance puts pressure on both government and private sector to ramp up infrastructure projects to keep the boom going. Building material demand is surging.
by Lucien Chauvin
Peru’s infrastructure deficit may be considered negative by many businesses operating in the country, but it is a boon for the cement industry. The Peruvian Construction Chamber (Capeco) estimates a deficit of 1.2 million housing units at the start of 2011, similar to the past two years. The Association to Foment National Infrastructure (AFIN), which groups together private companies operating public services, claims Peru needs approximately $38 billion of investment in the next five years in energy, sanitation and transportation infrastructure to ensure annual economic growth of 6% or more.
The twin deficits, on top of forecasts of more than $56 billion in new mining and energy projects through 2020, could not be better news for Peru’s cement business, which is growing at a record pace, according to the Association of Cement Producers (Asocem).
Cement consumption in November 2010 jumped 22.9%, to 754,422 metric...
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