Boston, MA 04/24/2014 (wallstreetpr) – One of the world’s largest Mexican cement company Cemex SAB de CV(ADR) (NYSE:CX) ran into trouble with Spanish tax authorities. Spanish tax authorities slap a fine of $455 million, after the tax authorities found irregularities in books of the company in year 2006 to 2009.
CX is going to appeal against the fine by Spanish Tax Authorities. $455 million fine is going to have an adverse effect on expansion plans of the company, as it will create a liquidity problem for the company.
Expansion Plans:
After acquiring two cement companies in Spain, CX is the biggest cement company in Spain. CX also plan to acquire a stake from Holcim Ltd (ADR) (OTCMKTS:HCMLY) and Lafarge S.A. (ADR) (OTCMKTS:LFRGY); these companies are selling their stake at discounted rates, buying their stakes will make CX a stronger player in the Europe. CX is also financing 25 % money to a $650 million company called Ventika, as the latter is planning to setup wind farm in Mexico rest of the finance is taken from different banks.
New product innovation:
U.K’s housing market has taken a hit in the global slowdown, forcing many clay brick maker to shut their shop. Building material demand is increasing as the U.K housing market has started to recover, but the clay brick makers are not able to cater to the demand. CX came up with a unique and environmental friendly brick called readybrick.
CX stated that it wants to become the best building material provider with its innovative products. The product called readybrick is an environmental friendly and is made from easily available raw material, Quarry dust. Cemex SAB de CV(ADR) (NYSE:CX) is getting lot of new orders for readybrick; also it surprised the company when readybrick surpassed its targets. High volume generated by readybrick is also an indication of a revival of the housing sector.
