Cemex

Infobox_Company
company_name = Cemex SAB de CV
company_
company_type = Public (BMV|CEMEX NYSE|CX)
company_slogan = Building the Future
foundation = Hidalgo, Nuevo León Mexico (1906)
location = Monterrey, Nuevo León, Mexico
key_people = Lorenzo Zambrano, Chairman/CEO
Rodrigo Treviño, CFO
num_employees = 67,000 (2007)
products = Cement
Ready-mix concrete
Construction aggregates
revenue = profit $21,6 billion USD (2007) | homepage = [http://www.cemex.com/ cemex.com]

Cemex SAB de CV (BMV|CEMEX, nyse|CX) is the world's largest building materials supplier and third largest cement producer. [ [http://www.latimes.com/business/la-fi-cemex8jun08,1,1524598.story?coll=la-headlines-business Mexico's Cemex to take over Rinker] . Los Angeles Times, Jun 08, 2007. Accessed Jun 08, 2007] Founded in Mexico in 1906, the company is based in Monterrey, Mexico and has operations extending around the world, including production facilities in 50 countries in North America, the Caribbean, South America, Europe, Asia, and Africa.

History

Cemex was founded with the opening of Cementos Hidalgo, in 1906. Meanwhile, Cementos Portland Monterrey began operations in 1920, and in 1931, the two companies merged, becoming Cementos Mexicanos, now Cemex. In the 1960s, Cemex grew significantly when it acquired several more plants throughout Mexico. In 1976, the company went public on the Mexican stock exchange, and that same year, became the largest cement producer in Mexico with the purchase of three plants from Cementos Guadalajara. In 1982, the company made significant progress in overseas markets, doubling its exports. Further acquisitions of Mexican cement companies were made in 1987 and 1989, making Cemex one of the ten largest cement companies in the world. In 1992, Cemex began its push into international production with the purchase of Spain's two largest cement companies. Venezuela's largest cement company, VENCEMOS, was acquired by Cemex in 1994, and plants were purchased the same year in the United States and in Panama. In 1995 Cemex acquired a cement company in the Dominican Republic, and with the purchase of a majority stake in a Colombian cement company in 1996, Cemex became the third largest cement company in the world. In 1997-1999, the company expanded its scope to include Asia and Africa, making major purchases in the Philippines, Indonesia and Egypt, as well as Costa Rica. The acquisition of U.S. based Southdown made Cemex the largest cement company in North America, and further international purchases were made in the following two years—a Thai company in 2001, and in 2002, a Puerto Rican company. On March 1, 2005, Cemex completed its $5.8 billion acquisition of the London-based RMC Group, which made Cemex the worldwide leader in ready-mix concrete production and increased its exposure to European markets. With the acquisition, the company expects its annual cement production to increase to 97 million tons, and could see its annual sales grow to $15 billion, just shy of the market leader, Lafarge nyse|LR, which has sales of $17 billion. On October 27, 2006, Cemex announced a US$12.8 billion offer to acquire all of the outstanding shares of Rinker Group, Limited. On 2007-04-10, the Rinker board of directors approved an upgraded offer of USD 14.2 billion, and on June 7, 2007, Cemex secured the commitment from the holders of more than 50% of the shares to complete the acquisition.

On April 2, 2008, the President of Venezuela, Hugo Chavez, announced the nationalization of "the whole cement industry" in that country, where Cemex owned almost half of the market share. The reasons given by the government for this action were their claims that the industry produced materials for exports instead of selling at "accessible" (non-market) prices for domestic home building. Opposition to Chavez point out that the government's failure to reduce the housing deficit and the inability of Venezuelan citizens to pay for houses at market prices are evidence of socialism's failure. [ [http://www.eluniversal.com.mx/notas/495545.html El Universal] ] These claims might also have had an influence in the government's decision to expropriate. Shortly after the announcement, the Mexican government said that they would "protect" the "legitimate interests" of Mexican companies abroad, without giving much details. [ [http://www.eluniversal.com.mx/notas/495554.html El Universal] ]

Today

As of late 2003, Cemex had annual cement production capability of 82 million tons and over 25,000 employees. Lorenzo Zambrano is the current chairman and chief executive officer. About one-third of the company's sales come from its Mexico operations, a quarter from its plants in the U.S., 15% from Spain, and smaller percentages from its plants around the world.

In 2004, Cemex received the Wharton Infosys Business Transformation Award for their creative and efficient use of information technology.

In September, 2007, Cemex announced it will seek to build a $400 million plant in Seligman, AZ, about 75 miles from Flagstaff, which will serve areas in Arizona including Phoenix. This plant is scheduled to open in 2012.

Cemex currently operates on four continents, with 66 cement plants, 2,000 ready-mix-concrete facilities, 400 quarries, 260 distribution centers and 80 marine terminals. [Sirkin, Harold L.; James W. Hemerling, and Arindam K. Bhattacharya (11-06-2008). " [http://www.bcg.com/globality GLOBALITY: Competing with Everyone from Everywhere for Everything] ". New York: Business Plus, 304. ISBN 0446178292.]

Cemex Worldwide

Cemex operates in 50 countries around the world, including:
*Argentina
*Australia
*Austria
*Bangladesh
*Colombia
*Costa Rica
*Croatia
*Czech Republic
*Dominican Republic
*Egypt
*Finland
*France
*Germany
*Hungary
*Ireland
*Indonesia
*Israel
*Latvia
*Malaysia
*Mexico
*Nicaragua
*Norway
*Panama
*Philippines
*Poland
*Puerto Rico
*Spain
*Sweden
*Switzerland
*Thailand
*The Caribbean
*United Arab Emirates
*United States (headquarters, Houston, Texas) - "CEMEX Inc." [ [http://hoovers.com/Cemex,-Inc/--HD__rxsxcfsch,src__dbi--/free-co-dnb_factsheet.xhtml CEMEX, Inc. - Company Overview - Hoover's ] ]
*United Kingdom

ocial Responsibility

Cemex has developed a number of educational and social responsibility initiatives. For example, it instituted the Premio Cemex, an annual award that recognizes works in the fields of sustainability, accessibility, construction and architecture. Also, it funds the Catedra Blanca, an honors architecture course in three universities: the ITESM, in Monterrey, the Universidad Iberoamericana, in Mexico City, and the Barcelona School of Architecture.

In 2007, the Organization of American States (OAS), through their Trust for the Americas, awarded the company The Corporate Citizen of the Americas Award 2007, for the social benefits of their program "Patrimonio Hoy", in Mexico, that according to José Miguel Insulza, President of the OAS, has a positive effect in low-income families. This initiative, conceived in 1998, aims to reduce the Mexican housing deficit which leaves more than 20 million people with inadequate shelter. Patrimonio Hoy organizes low-income families into self-financing cells that facilitate and expedite the typical homebuilding process. CEMEX and its network provide the products needed but also the technical assistance, including an architect who helps design homes to optimize space and reduce waste. To date, more than 70,000 Mexican families have realized their dreams of home ownership [ [http://www.elnorte.com/negocios/articulo/750543/ Recibe Cemex reconocimiento] , by El Norte, in spanish, requires suscription (original text: "Cemex México recibió el reconocimiento internacional por los beneficios sociales de su programa Patrimonio Hoy, durante la entrega de "The Corporate Citizen of the Americas Award 2007" que organiza The Trust for the Americas y la Organización de Estados Americanos (OEA). El secretario general del organismo interamericano, José Miguel Insulza, destacó que conoce el programa Patrimonio Hoy y sabe de su positivo impacto social en favor de familias de escasos recursos."]

Environmental Record

Cemex has been accused of violating environmental laws in the United States. Special Interest groups and the United States Environmental Protection Agency are threatening to file suit claiming the company has committed numerous violations of the Clean Air Act in Lyons, Colorado. [ [http://www.ourcleanair.org/cemex cemex ] ] The United States Environmental Protection Agency has also filed suit against Cemex in Victorville, California, claiming the company failed to install modern air pollution controls, despite spending millions in renovations. [ [http://www.thefreelibrary.com/EPA+SUES+CEMEX+OVER+AIR+QUALITY+VICTORVILLE+PLANT+CONTROLS+CITED-a0160015676 Epa Sues Cemex Over Air Quality Victorville Plant Controls Cited. - Free Online Library ] ]

In the United Kingdom, Cemex was fined £400,000 on October 2006 after hazardous dust was deposited up to three miles away from its Rugby works. The judge criticised the company’s "sloppy attitude" to managing the site. The fine was the highest ever given under the Integrated Pollution Prevention and Control regulations, and was also the highest for an Environment Agency prosecution for six years. [ENDS Report 381, October 2006, pp 4-5]

In April 2007, Cemex announced that it had installed a £6.5 million dust abatement system at the same works in Rugby, which had cut particulate emissions by 80%. The site comes under the auspices of the EU Waste Incineration Directive as it burns waste tyres for fuel. There are concerns over the impact on both the environment and human health from this practice, although it is common practice in many cement works. [ENDS Report 388, May 2007, p 29] .

It is globally recognised that using alternative fuels is key to improving environmental performance for the industry and that CEMEX is at the forefront of this activity. Alternative fuels are used to reduce carbon dioxide emissions and energy costs, examples include secondary liquid fuels, chipped tyres and household waste, all of which can be used to part-replace fossil fuels to heat cement kilns.

In addition to alternative fuels, CEMEX are also pioneering CEM2 & CEM3 blended cements. CEM2 is a cementitious product that reduces landfill through re-using Fly Ash, a by-product from coal fired power stations, and reduces carbon dioxide emissions by 25% for each tonne produced, CEM3 is a similar product that re-uses products from the iron or steel industries, and reduces carbon dioxide levels by 49% for each tonne produced.

References

External links

* [http://www.cemex.com CEMEX]
* [http://www.cemex.co.uk CEMEX UK]
* [http://finance.yahoo.com/q?s=CX Yahoo.com Company Profile]
* [http://www.premioobcascemex.com Premio Cemex]
* [http://www.catedrablanca.com.mx Catedra Blanca-Cemex at ITESM]
* [http://www.cemex.co.uk/ce/ce_bp_sc.asp Sustainable Cements - CEM2 & CEM3]
* [http://www.cemex.co.uk/su/su_af.asp What Are Alternative Fuels?]
* [http://www.cemex.co.uk/ce/ce_pp.asp How Is Cement Made? -- Flash Animation]
* [http://www.cemex.co.uk/re/re_pp.asp How Is Readymix Concrete Made? -- Flash Animation]
* [http://www.cemex.co.uk/aa/aa_pp_hr.asp How Is Hard Rock Quarried? -- Flash Animation]
* [http://www.cemex.co.uk/aa/aa_pp_sg.asp How Is Sand & Gravel Quarried? -- Flash Animation]
* [http://www.cemex.co.uk/aa/aa_pp_ma.asp How Is Marine Aggregate Extracted? -- Flash Animation]