Cemex
| Cemex logo | |
| Company type | Public (NYSE:CX, BMV:CEMEX) |
|---|---|
| Founded | Hidalgo, Nuevo León Mexico (1906) |
| Headquarters | Monterrey, Nuevo León, Mexico |
Key people | Lorenzo Zambrano, Chairman/CEO Rodrigo Treviño, CFO |
| Products | Cement Ready-mix concrete Construction aggregates |
Number of employees | 67,000 (2007) |
| Website | cemex.com |
Cemex SAB de CV (NYSE: CX, BMV: Cemex) is the world's third largest manufacturer of cement[1] and the world's leading supplier of ready-mix concrete. 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 increasing 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.
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.
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.
Criticism
Cemex has been accused of violating environmental laws in the United States. Special Interest groups and the Environmental Protection Agency are threatening to file suit claiming the company has committed numerous violations of the Clean Air Act in Lyons, Colorado.[2] The U.S. 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.[3]