Cementos Pacasmayo S.A.A. (NYSE:CPAC) Q3 2022 Earnings Call Transcript
Cementos Pacasmayo S.A.A. (NYSE:CPAC) Q3 2022 Earnings Call Transcript October 26, 2023
Humberto Nadal Del Carpio: [Call Starts Abruptly] different organizations. We are extremely proud of this achievement since Pacasmayo is the only company in the top ten that does not have a national presence. We truly believe it is a reflection of our constant work in the past 65 years. Reputation is a value that stakeholders attribute to a company based on their perception and interpretation of the image that the company communicates and projects over time. Therefore proper reputation depends on the actual activities and tangible results that stakeholders experience. We take this recognition with great honor and responsibility, and we are absolutely committed to continue delivering a positive experience to all of our stakeholders.
As I'm sure you're all aware of already, a new forecasting for 2024, currently with a high probability of being a moderate phenomenon. We have already experienced the effects of inclement weather earlier this year with Cyclone Yaku that among other things interrupted part of the road that connects the main [indiscernible] with our plant. Thanks to our conservative inventory policy, we have not been affected by the interruption, but we immediately started planning a solution. We are currently working with the government to install two modular bridges supported by concrete foundations and brick styles. In addition, two detours are currently being built to provide transit continuity to the ongoing works, which should be finished by the end of next month.
A pile of cement on the top of the wheelbarrow in construction site.
The whole project has been planned to minimize the risk of having to halt the construction because of heavy rains. Therefore, the schedule foresees a completion of the underground work by November when there is lower probability of heavy rains, and only the surface work will remain until the end of January, which is the expected completion date for the whole project. We are very confident that our prevention and risk management strategy, as well as our execution capacity, will lead us to restore full transit according to our schedule. As we have previously mentioned, this year we launched the EcoSaco, a cement bag that completely disintegrates with the concrete mix, generating zero waste. For us, this is much more than a simple cement bag. It's a solution that has the potential to revolutionize the market, particularly the self-construction segment.
As with any transformational change, it requires and will require much effort in order to gradually change culturally established paradigms and consumer habits. This is precisely what we are both glad and proud that the EcoSaco won the Semana Económica ESG Sustainability Prize this week, both in the sustainable product innovation category and the grand prize, which is the all-around category, awarded to the project with the greatest environmental, social, and economic impact. The EcoSaco is also among the 11 finalists in [indiscernible] LatAm in two categories. These awards and nominations are not only a great sign that we are making a strong and impactful contribution, but also outstanding platforms that allow us to continue educating consumers and effectively communicating the benefits of this great product.
Finally, I would now like to mention that I am extremely honored to represent Pacasmayo as a board member for the GCCA, The Global Cement and Concrete Association, for the upcoming two-year period. I take this position with great appreciation, but also with an enormous level of responsibility that it entails. Latin American companies face a great ethical dilemma, as there is a pressing need to reduce carbon emissions and protect our planet, but also an equally pressing need to provide homes, adequate infrastructure, and overall development to our people. We cannot focus on one over the other. We need to creatively think of solutions that will target both issues and this is the only path to achieve true and I mean true sustainable development.
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