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CEMEX S.A.B. de C.V.
Type Public (BMV: CEMEX NYSECX)
Founded Hidalgo, Nuevo León Mexico (1906)
Headquarters Monterrey, Nuevo León, Mexico[1][2][3][4][5]
Key people Lorenzo Zambrano, Chairman/CEO
Rodrigo Treviño, CFO
Products Cement
Ready-mix concrete
Construction aggregates
Revenue $21,6 billion USD (2007)
Employees 67,000 (2007)
Website cemex.com

CEMEX S.A.B. de C.V. (BMV: CEMEX, NYSECX) is the world's largest building materials supplier and third largest cement producer.[6] Founded in Mexico in 1906, the company is based in Monterrey, Mexico. CEMEX has operations extending around the world, with production facilities in 50 countries in North America, the Caribbean, South America, Europe, Asia, and Africa.

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.

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.[7] The company's world headquarters are in San Pedro Garza Garcia, a city that is part of the Monterrey metropolitan area in the northeastern Mexican state of Nuevo León. [1][2][3][5][8]

Contents

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.

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

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 NYSELR, 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. However in 2007 the United States Department of Justice brought an antitrust lawsuit against CEMEX, blocking the acquisition.[9]

In April 2008 the President of Venezuela, Hugo Chavez, announced the nationalization of "the whole cement industry" in that country, in response to the fact that the industry was exporting its products in order to receive prices above those which it was allowed to obtain within the country.[10] In mid-2008 the Venezuelan government took over the Venezuelan operations of CEMEX, the largest Venezuelan producer with around a 50% market share; a deal on compensation was still to be reached in March 2009,[11] despite agreements being reached in mid-2008 with the other two major cement producers.[12]

In June 2009, CEMEX sold its Australian operations to Holcim for AU$ 2.2 Billion (US$1.75 Billion) in order to refinance a US$ 14 billion debt from the acquisition of Rinker Group.[13]

CEMEX Worldwide

CEMEX operates in 50 countries around the world, including:

Argentina
Austria
Bangladesh
Colombia
Costa Rica
Croatia
Czech Republic
Dominican Republic
Egypt
El Salvador
Finland
France

Germany
Hungary
Ireland
Indonesia
Israel
Latvia
Malaysia
Mexico (World Corporate Headquarters, Monterrey, Nuevo Leon, Mexico) [1] [2] [3] [5] [8]
Nicaragua
Norway
Panama
Philippines

Poland
Puerto Rico
Spain
Sweden
Switzerland
Thailand
The Caribbean
United Arab Emirates
United States (U.S. operations headquarters, Houston, Texas) - CEMEX Inc.[14]
United Kingdom

Subsidiaries

Social 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 [15]

Environmental Record

CEMEX has been accused of violating environmental laws in the United States. Environmental watchdog 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.[16] 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.[17]

In the United Kingdom, CEMEX was originally fined £400,000 on October 2006 after hazardous dust was deposited up to three miles (5 km) away from its Rugby works. 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.[18]. The fine was however judged excessive by the Court of Appeal and so reduced to £50,000.[19].

During tests conducted from June 10 to August 5, 2008, the Monterey Bay (California) Unified Air Pollution Control District reported high levels of Chromium 6, also known as Hexavalent Chromium, a cancer causing chemical agent, at an elementary school and fire department in Davenport, California. Chromium 6 is the contaminant that inspired the movie, "Erin Brockovich". The toxic substance apparently originated from dust emitted by the Cemex Cement plant in Davenport. The levels of chromium 6 measured eight times the air district's acceptable level at Pacific Elementary School and 10 times at the Davenport Fire Department. Both are located less than a half-mile from CEMEX.[20] The carcinogenic toxin chromium 6 may have been unwittingly produced at the CEMEX plant in Davenport for the last seven years. Even scarier, it's "highly possible" that chromium 6 continues to be produced across the country as an accidental, previously unknown byproduct of the cement-making process, according to Ed Kendig, the executive director of the Monterey Bay Unified Air Pollution Control District. [21]

In 2007, the EPA filed a complaint against CEMEX for violating federal air regulations at its Victorville, CA plant, and in 2006, CEMEX was cited for violations at plants in Santa Barbara and Michigan. [21]

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.[22].

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 producing 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.

In response to tightening environmental regulations coupled with a call for improved plant efficiencies, CEMEX began upgrading its plant compressed air systems with self-contained compressed air utility modules manufactured by the United States-based subsidiary of Kaeser Komprossoren.

See also

Main CEMEX competitors are:

External links

References

  1. ^ a b c Corporate World Headquarters - Company's website Retrieved February 10, 2009.
  2. ^ a b c Corporate Headquarters according to Company's Website world locations map Retrieved February 10, 2009.
  3. ^ a b c Corporate World Headquarters at San Pedro Garza Garcia - Monterrey, ML, Mexico, per Hoover's Dunn & Bradstreet Profile Retrieved February 10, 2009.
  4. ^ CEMEX Corporate World Headquarters situated in San Pedro Garza Garcia, Mexico, per Linkedin Retrieved February 10, 2009.
  5. ^ a b c The headquarters remain in the bustling Mexican industrial city of Monterrey, Mexico, 140 miles south of the Texas border Retrieved February 10, 2009.
  6. ^ Mexico's CEMEX to take over Rinker. Los Angeles Times, Jun 08, 2007. Accessed Jun 08, 2007
  7. ^ Sirkin, Harold L.; James W. Hemerling, and Arindam K. Bhattacharya (11-06-2008). GLOBALITY: Competing with Everyone from Everywhere for Everything. New York: Business Plus, 304. ISBN 0446178292.
  8. ^ a b Cemex Corporate World Headquarters situated in San Pedro Garza Garcia, Mexico, per Linkedin Retrieved February 10, 2009.
  9. ^ Source: http://www.fromthedoj.com/2009/03/us-doj-blocks-cemex-acquisition-of-rinker/
  10. ^ Hugo Chavez Nationalizes Cement Industry, CBS News, April 4, 2008.
  11. ^ [1]
  12. ^ [2]
  13. ^ Battersby, Lucy. "Mexican sell-off puts Australian concrete operations in Swiss hands". The Sydney Morning Herald. http://www.businessday.com.au/business/mexican-selloff-puts-australian-concrete-operations-in-swiss-hands-20090615-caqg.html. Retrieved 2009-07-07.  
  14. ^ CEMEX, Inc. - Company Overview - Hoover's
  15. ^ 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."
  16. ^ cemex
  17. ^ Epa Sues Cemex Over Air Quality Victorville Plant Controls Cited. - Free Online Library
  18. ^ ENDS Report 381, October 2006, pp 4-5
  19. ^ ENDS Report 391, August 2007
  20. ^ Source: http://www.santacruzsentinel.com/localnews/ci_10630621
  21. ^ a b Source: http://www.metrosantacruz.com/metro-santa-cruz/10.15.08/nuz-0842.html
  22. ^ ENDS Report 388, May 2007, p 29

Coordinates: 25°39′04″N 100°21′05″W / 25.65111°N 100.35139°W / 25.65111; -100.35139


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