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Mexican cement manufacturer Grupo Cementos de Chihuahua (GCC) expects sales growth to decline this year after record revenue last year as low oil prices constrict demand in the United States – the company’s top market, reported Reuters.

GCC Treasurer Luis Carlos Arias stated that after a nearly 20 percent sales spike in 2014, the company projects only single-digit growth in the United States, which accounts for about 70 percent of total sales.
Demand in Mexico is expected to fall slightly, he said.

Cement is used to build protective casings for oil wells, including drilling projects at U.S. shale developments that have been booming in the United States over the past few years. Low oil prices have already caused falling rig counts at many shale projects.

GCC operates six plants in the United States and Mexico, and has an annual production capacity of 4.4 million tons of cement.

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