Ancap’s Board of Directors approved the bases to carry out a competitive call that seeks to establish an industrial and commercial association in the cement and lime businessreported the entity.
In this way, it points to “reverse the deficit economic situation” that this production area of the company has had for 20 years, and also “make the investments required to restore competitiveness in the national market.”
The call will be made in two stages. On the one hand, there will be a preparatory stage which consists of the call for expressions of interest, access to detailed information and a subsequent competitive dialogue.
The publication on the website of the Regulatory Agency for State Purchases will begin a period of 30 working days in which all the information on the cement and lime businesses will be made available to interested parties.
A period of meetings with the interested parties will then begin in order to exchange considerations on the future vision of the business and possible forms of association, the company explained.
The second stage is recruitment.. Based on the elements that emerged in the previous stage, Ancap will prepare the bases and conditions of the public call for association and will define the terms of the call, he said.
The stages are independent and non-binding, and participation in the call for expressions of interest and competitive dialogue stage is not exclusive in order to participate in the contracting tender, the company said.
Last September Ancap decided to move forward with the incorporation of a private partner for the portland and lime business. The technical data room had 17 interested parties.
Ancap understands that it is not in a position to face by itself the millionaire investments that are needed to achieve operating costs that allow it to compete in the local and regional cement market in order to be able to export.
The proposed solution through a comprehensive association seeks a “successful rescue” of the business and seeks to maintain jobs (around 500), the entity had reported.
The Portland division has accumulated numbers in the red for two decades, with losses of about US$ 10 million per year on average. Ancap expects to close the process in the first half of next year, according to what its authorities have stated.
Fancap’s opposition
The entry of a private partner into the Portland business it is a point of conflict with the Fancap union that opposes that strategy. One of its central proposals is for the State to complete the investment for the installation of a third furnace in Paysandú, which would allow it to reduce costs in order to be competitive at the national and regional levels, as has been expressed on different occasions. The installation of the new oven purchased in 2012 for about US$70 million requires an additional investment of about US$100 million.
In addition, it is argued that since the State is the main consumer of cement in the country, and in turn is a producer, it must take advantage of this situation to cover the needs in terms of housing, roads and infrastructure. In this direction, the implementation of a national public works plan by the government that uses the production capacity available today is considered necessary.
“A clear objective for the future and that continues is the defense of Portland. That’s something we’re not going to back down on.”he stated this Friday to The Observer the new president of the union, Natalia Belo.
