Cruz Azul Cooperative to Invest US$381 Million to Restart Hidalgo Cement Plant

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On August 19, 2026, the Cruz Azul cement cooperative announced a 6.5 billion peso (approximately US$381 million) investment to restart its founding plant in Tula de Allende, Hidalgo. The announcement was hosted by President Claudia Sheinbaum and Hidalgo governor Julio Menchaca alongside the cooperative’s board chair, Victor Manuel Velazquez. The funding, sourced entirely from the cooperative’s balance sheet, included 1.8 billion pesos for site refitting, 3.7 billion pesos for a new production line, and 1 billion pesos for a local hospital. The facility had been silent since 2022 following a seizure in 2020 and a protracted internal conflict that resulted in ten deaths.

Consequences

The investment is expected to generate 14,200 direct and indirect jobs and restore production capacity to 3 million tonnes of cement annually. The project signifies the industrial recovery of the site following its February 2026 court-ordered recovery.

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