As part of a worldwide 2006 capital expansion program unveiled last week, Cemex plans to break ground on a second kiln at its Balcones mill in New Braunfels, Texas. A recently obtained Texas Commission on Environmental Quality permit allows the company to double the Balcones capacity, currently 1.1 million tpy. Cemex projects completion of the new kiln and environmental equipment installation by 2008. The company estimates a total outlay of $220 million for the project. Part of it will be funded from this year's US$500 million capital expansion budget, which will also cover upgrades of cement plants in the U.K., France and Latvia that Cemex inherited with the early 2005 takeover of RMC Group.