GCC Announces Resolution of U.S./Mexico Trade Dispute on Imported Cement

Reimbursement of US$40 Million of Deposits Expected 


CHIHUAHUA, Mexico, Jan. 20  /PRNewswire-FirstCall/ -- Grupo Cementos de Chihuahua S.A. de C.V. (BMV: GCC*) ("GCC" or the "Company"), a leading cement producer in the markets where it competes in Mexico, the United States and Bolivia, today announced that the governments of Mexico and the United States have reached an agreement in principle for the resolution of a trade dispute, which effectively lifts restrictions on the Mexican industry's exports of grey Portland cement into the U.S. market, and will provide GCC with a cash reimbursement of approximately US$40 million in anti-dumping deposits and the elimination of US$30 million in liabilities.

Under terms of the agreement, negotiated between the Mexican Secretary of the Economy and the U.S. Department of Commerce, tariffs will be lowered to US$3 per ton from the current US$26 per ton rate over a three-year interim period, during which three million tons of Mexican cement will be permitted into the U.S. annually on regionally based quotas. In 2009, volume restrictions and tariffs will be revoked entirely.

"We welcome this announcement," said Manuel Milan, Chief Executive Officer of GCC, "as it will enable us to better serve our clients and help alleviate the shortages of cement in our markets in the U.S.A."

  For more information:
  Luis Carlos Arias
  +011-52-614-442-3217

  Victor Barriguete
  +011-52-614-442-3189

  

  About GCC


GCC is a leading supplier of cement, aggregates, concrete and construction-related services in the markets where it competes in Mexico, the United States and Bolivia. The Company's annual cement production capacity is 4.0 million tons. Sales as of September 2005 (TTM) 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.

http://www.gcc.com/ 

First Call Analyst: 

DATASOURCE: Grupo Cementos de Chihuahua S.A. de C.V.



CONTACT:  Luis Carlos Arias, +011-52-614-442-3217, or Victor Barriguete,

+011-52-614-442-3189, both of GCC,  



Web site:  http://www.gcc.com/ 

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