AMLO determined to shut down construction material producer's operations

Mexico’s President Andrés Manuel López Obrador (AMLO) reiterated his opposition to US-based construction material producer Vulcan Materials’ Quintana Roo operations.

During his Tuesday morning press conference, AMLO said the government is determined to shut down operations at the La Rosita property, claiming local subsidiary Calica caused an environmental disaster.

“[The property] cannot be a material extraction point; they cannot dynamite it and cause all that damage … We gave them two options: we buy [the land] from them, or we give them permission to have a tourist development,” he said. 

Among others, Calica is quarrying limestone. 

Calica’s customs permit, granted in March and originally valid for three years, was suspended in mid-May.

Vulcan said in a statement that “should the company be unable to fully operate in Mexico for the balance of 2022, the potential Ebitda impact would range from US$80mn to US$100mn, which would approximate 5% of Vulcan’s adjusted Ebitda guidance of US$1.72bn-US$1.82bn for 2022.”