Cementos Molins SA, Spain, the main stakeholder in Argentina's Cementos Avellaneda, said on Monday it plans to invest US$189mn to expand production at the company's local facilities.

The company currently operates a 0.3Mta capacity plant in San Luis province which will be expanded to 1Mta after the upgrade.

The investment comes after moves by President Mauricio Macri to reconcile Argentina with global capital markets and improve the level of foreign investment in an effort to revive the flagging economy.