GCC weighs freight costs vs. steep capital outlay in Texas plant expansion

Sources: GCC S.A.B. de C.V., Chihuahua, Mexico; CP staff

GCC plans to add more than 1 million metric tons of annual capacity to its Odessa, Texas cement plant. The project’s $750 million budget will almost surely set a new dollar/ton of output watermark for a cement operation in North America, where recent outlays of comparable clinker capacity have trended below $500 million. 

The investment will position GCC of America to meet growing demand across the Southwest, including Infrastructure Investment and Jobs Act-rooted work, and streamline freight costs presently incurred by serving region customers from Odessa, Pueblo, Colo., and Chihuahua and Samalayuca, Mexico plants. GCC officials anticipate a mid-2025 start for the expanded Texas production line, a target factoring current supply chain constraints and project scope. 

“We remain strongly committed to delivering strong stakeholder value, while investing in the future growth of our business,” says GCC CEO Enrique Escalante. “With the expansion of the Odessa plant we will ensure GCC is prepared for a new phase of the industry cycle.”

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