GCC ACQUIRES READY-MIX ASSETS IN SOUTH DAKOTA AND MINNESOTA
Chihuahua, Chih., Mexico, January 5, 2006
The acquired companies, Consolidated Ready Mix, Inc., Henrich and
Sons, Inc., Huron Steel Structures, Inc., and B&B Concrete, Inc., generate approximately US$ 30
million in revenues annually from 14 strategically located ready mix plants with a fleet of 100
ready-mix trucks.
This acquisition will enhance the GCC´s leadership position in the
competitive cement markets of South Dakota and surrounding regions and position the Company to
benefit from anticipated growth in demand for concrete, while immediately augmenting the GCC´s net
sales and EBITDA.
The group of companies, which are the leaders in the markets where
they compete, will be operated as Consolidated Ready Mix, Inc. by its current management as a
wholly-owned subsidiary of GCC.
"This acquisition represents a unique opportunity for GCC to secure
its long-term leadership position in a growing market. At the same time, our regional clients in
the construction industry will benefit from the full-service cement and ready mix concrete offering
we can now provide," said Manuel Milan, Chief Executive Officer of GCC.
* * * NOTE: A conference call will be held today, Thursday, January
5, 2006 at 1:00 p.m. Mexico City time to discuss this acquisition. Please log onto the webcast at
www.gcc.com, or dial +1-973-935-2048 to participate.
About GCC GCC is a leading supplier of cement, aggregates, concrete
and construction-related services in the markets where it competes in Mexico, United States and
Bolivia. The Company´s annual cement production capacity is 4.0 million tons. Sales as of September
2005 (12 months) totaled 4.3 billion pesos.
Founded in 1941, the Company´s shares trade on the Mexican Stock
Exchange under the ticker symbol GCC*.
This document may contain forward-looking statements relating to
Grupo Cementos de Chihuahua S.A. de C.V. and subsidiaries (GCC) based upon management´s
projections. These projections reflect GCC´s opinion on future events that may be subject to a
number of risks and uncertainties. Various factors may cause actual results to differ from those
expressed herein, including, among others, changes in macroeconomic, political, governmental or
business conditions in the markets where GCC operates; changes in interest rates, inflation rates
and currency exchange rates; construction industry performance; pricing, business strategy and
other factors. Should one or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those described herein. GCC
assumes no obligation to update or correct the information contained in this press release.
Grupo Cementos de Chihuahua S.A. de C.V. ("GCC" or the "Company")
(BMV: GCC*), a leading cement producer in the markets where it competes in Mexico, United States
and Bolivia, today announced the acquisition of four leading ready-mix concrete companies in
eastern South Dakota and western Minnesota.