Expansion and Consolidation

Value Chain Boundaries

Impacts of this topic reach Argos’ procurement processes and the supply chain.Suppliers
Impacts of this topic are evaluated throughout all Argos operations.Argos
Impacts of this topic reach our industrial and/or retail clients.Clients
Impacts of this topic reach our communities, authorities and other individuals of the society.Society

Our management approach

Added value to the company

By following a disciplined expansion and consolidation strategy, we ensure value creation and profitable growth within a defined and interconnected region with positive fundamentals.

Added value to society

We are successfully adapting our operational model to all our acquired assets while respecting local cultures. We are also successfully increasing manufacturing efficiency and competitiveness with sustainability and innovation as our main guidelines. We support the sharing of best practices and learning from our new operations.

103-2 A-X1 Initiatives, commitments, and policies

Our expansion principles are:

Defined interconnected geographical area

Strong fundamentals (positive demographics, housing deficit, and infrastructure needs)

Synergy creation and value generation

Maintenance of financial flexibility

Sector focused

Economies with different market cycles

103-2 Upcoming challenges

  • To find assets that meet our minimum return level and adhere to our principles.
  • To ensure that the Argos model is successfully adapted to local operations.

103-2 Governance

Board of Directors

CEO and Executive Committee

San Lorenzo grinding facility, Honduras, Caribbean and Central America Region

2016 performance

Martinsburg Plant, USA Region

102-10 A-X2 A-X3 A-X1 Martinsburg acquisition:

We acquired the Martinsburg plant in the USA Mid-Atlantic region for USD 660 million. The assets include a estate-of-the-art cement plant in Martinsburg commissioned in 2009, with eight cement terminals, four of them with water access. With this acquisition, we will add 2.2 million tons to our cement capacity with a plant that complements our existing footprint:


2.2 million tons
of cement capacity

Transaction value
USD 660 million

Nearly 200 new employees

Potential market in the USA:
around 158 million people

Panama minority sale:
We sold a
stake of the Panamanian operation for

2017 Goals
  • We will successfully integrate our new operation.
  • We will complete the divestment plan to reduce our leverage to pre-acquisition levels by selling non-strategic real estate assets and energy self generation plants.