Is the Peruvian Cement Industry Competitive

Abstract

The cement sector is currently the most prominent on the national economy and which

is driven by the private sector –the motor for its expansion– by executing a wide variety of projects

(construction of multifamily housing, shopping malls, supermarkets, hotels), and with the highest

public investment which includes the construction and rehabilitation of roads, highways, hospitals,

schools, among other works in development and execution. Against this background, this paper aims

to analyze the competitiveness of the cement industry while it seeks to verify the benefits obtained upon

the construction boom and its performance as an economic aggregate. To that end, a descriptive-

explanatory documentary analysis was carried out from the published financial statements and the

reports by risk rating agencies. It was found that the Sector is competitive because it did not increase

the unit price of the sack of cement despite the growth of consumption; it benefited from the boom in

housing construction; and the economic value added, at an Effective Annual Interest Rate of 10%,

in national currency, was positive for most of the Cement Companies. Consequently, the promotion

of shareholding is encouraged in a STATE-UNIVERSITY-COMPANY approach, seeking greater

productivity with high added value.