WASHINGTON (dpa-AFX) - Vulcan Materials Co. (VMC) confirmed Friday that the Mexican government has suspended the three-year customs permit granted in March 2022 to its Mexican subsidiary and has begun a proceeding that could result in the revocation of that permit. A decision to maintain or revoke the permit will be made within weeks.
The company noted that the routinely renewed permit had been recently granted for customs purposes at the port terminal within property. The port terminal is operated by the Company pursuant to a concession that is valid through 2037.
The permit enables Vulcan's subsidiary to export its production to the United States; however, absent the customs permit no export or import operations of any kind may be conducted by any entity at the port terminal.
As with the arbitrary shutdown orders to immediately cease underwater quarrying and extraction operations received on May 5, Vulcan said it strongly believes that this latest action by Mexico is arbitrary and illegal.
Should the company be unable to fully operate in Mexico for the balance of 2022, the potential EBITDA impact would range from $80 million to $100 million, which would approximate 5% of Vulcan's Adjusted EBITDA guidance of $1.720 billion-$1.820 billion for 2022.
The company intends to vigorously pursue all lawful avenues available to it in order to protect its rights, under both Mexican and international law, and resume normal operations as soon as permitted.
The company has quarried limestone legally in Mexico - on land that it owns - for over 30 years.
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