Peru: Pacasmayo Sets Foundation for Record Cement Year and Focuses on Energy

Despite a challenging 2023 with a contraction in the construction sector, Pacasmayo prepares for a rebound and record results in 2024, backed by significant investments and a focus on sustainability.

Peru: Pacasmayo Sets Foundation for Record Cement Year and Focuses on Energy
Photo by McKayla Crump / Unsplash

In 2023, the Peruvian construction sector faced a significant downturn, with a contraction of 8.7% according to the Peruvian Chamber of Construction. This led to an 11% decrease in national cement dispatch to 12 million tons, as reported by the Association of Cement Producers (Asocem). However, Pacasmayo, part of Grupo Hochschild, navigated these challenges by completing the installation of its fourth kiln, setting the stage for an anticipated record-breaking year in 2024.

Humberto Nadal, CEO of Pacasmayo, described 2023 as a complex yet successful year. Despite delayed volumes, the company maintained higher levels than pre-pandemic times and saw good profitability. In response to the capacity constraints highlighted by a 40% growth in 2021, Pacasmayo invested $85 million in a new kiln in La Libertad, adding 600,000 tons of clinker to its production capacity. This investment has made Pacasmayo self-sufficient in clinker, with potential plans to explore export opportunities.

Looking ahead to 2024, Nadal is optimistic about the construction sector's growth, supported by self-construction and delayed private and public investments. Key megaprojects like Chavimochic III and potential projects in Olmos II are expected to drive demand. Pacasmayo's strategic shift towards providing comprehensive construction solutions, digital transformation, and environmental sustainability positions it for a landmark year in terms of performance and profitability.