Cemex — BrandWiki

Cemex

Overview

CEMEX S.A.B. de C.V.

type	Sociedad Anónima Bursátil de Capital Variable
traded as	bmv: CEMEX 5203 nyse: CX< 🇵🇸
foundation	1906
founder	Lorenzo Zambrano Gutierrez
location	Monterrey, Nuevo León, Mexico
industry	Building materials
area served	Worldwide
key people	Rogelio Zambrano Lozano (Executive Chairman) Jaime Muguiro (CEO)
num employees	41,000+
products	Cement, ready-mix concrete, and construction aggregates
revenue	US$ 13 billion (2020)
net income	(US$ 1.47 billion) (2020)
assets	US$ 27.4 billion (2020)
homepage	www.cemex.com

CEMEX S.A.B. de C.V., known as Cemex, is a Mexican multinational building materials company headquartered in San Pedro, near Monterrey, Nuevo León, Mexico. It manufactures and distributes cement, ready-mix concrete and aggregates in more than 50 countries. In 2020 it was ranked as the 5th largest cement company (by amount of cement produced annually) in the world, at 87.09 million tonnes.[1]

Lorenzo Zambrano was the chairman and chief executive officer until his death on May 12, 2014. The Board of Directors named Rogelio Zambrano Lozano as chairman, and Fernando A. Gonzalez as CEO.[2]

About a quarter of the company's sales come from its Mexico operations, a third from its plants in the U.S., 30% from its operations in Europe, North Africa, the Middle East and Asia, and the rest from its other plants around the world.[3]

CEMEX currently operates on four continents, with 64 cement plants, 1,348 ready-mix-concrete facilities, 246 quarries, 269 distribution centers and 68 marine terminals.

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 2004, CEMEX received the Wharton Infosys Business Transformation Award for their creative and efficient use of information technology.[10]

In 2005, CEMEX acquired RMC Group, a ready mixed concrete, quarrying and concrete products company headquartered in Egham, United Kingdom.[11]

Internationalization, 1990–2006

In 1992, CEMEX began its push into the international landscape with the purchase of Spain's two largest cement companies, Valenciana de Cementos (Valcem, currently head of CEMEX Spain) and Cementos SANSON. 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.[12]

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 expected its annual cement production to increase to 97 million tons. Also they had hoped to see its annual sales grow to $15 billion, just shy of the market leader, Lafarge nyse: LR, which had sales of $17 billion. As none of these targets was met, CEMEX started looking for another suitor in its M&A push.

On October 27, 2006, CEMEX announced a US$12.8 billion offer to acquire all of the outstanding shares of Rinker Group, Limited. Seven months later, on April 10, 2007, 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.

Recent history (2006–)

Shortly after the apparent finalization of the Rinker deal in 2007, the United States Department of Justice brought an antitrust lawsuit against CEMEX, blocking the acquisition. After a lengthy process, CEMEX complied with regulators by divesting (selling) 40+ cement and concrete plants formerly part of itself or Rinker, essentially devaluing the initial deal.[13]

In April 2008, the President of Venezuela, Hugo Chávez, announced the nationalization of "the whole cement industry" in that country, in response to the belief that the industry was exporting its products in order to receive prices above those it was allowed within the country.[14] 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,[15] despite agreements being reached in mid-2008 with the other two major cement producers.[16] In December 2011, an agreement was reached, with Cemex receiving $600m in compensation, and benefiting from the cancellation of $154m in debt.[17]

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.[31] CEMEX divested its operation in Lyons, Colorado, in 2016.[32] 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.[33] The case was settled in 2009.[34] In February 2021 the U.S. Department of Energy awarded funding for research on carbon-capture at the CEMEX Victorville cement plant.[35]

In the United Kingdom, CEMEX was originally fined £400,000 in 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.[36] The fine was, however, judged excessive by the Court of Appeal and so reduced to £50,000.[37] 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 tires 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.[38] In 2021 CEMEX announced investments in Europe to promote an environmentally-friendly “circular economy,” safely using waste as a substitute for fossil fuels, including in its Rugby plant.[39]

During tests conducted from June 10 to August 5, 2008, the Monterey Bay (California) Unified Air Pollution Control District reported high levels of chromium VI, also known as hexavalent chromium, a cancer causing chemical agent, at an elementary school and fire department in Davenport, California. Chromium VI is the contaminant that inspired the movie, Erin Brockovich. The toxic substance apparently originated from dust emitted by the Cemex Cement plant in Davenport, as the levels of Chromium VI 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.[40] Chromium VI may have been unwittingly produced at the CEMEX plant in Davenport for the last seven years. According to Ed Kendig, the executive director of the Monterey Bay Unified Air Pollution Control District, it's "highly possible" that Chromium VI continues to be produced across the country as an accidental, previously unknown byproduct of the cement-making process.[41]

In 2007, the EPA filed a complaint against CEMEX for violating federal air regulations at its Victorville plant, and in 2006, CEMEX was cited for violations at plants in Santa Barbara and Michigan.[41]

Cemex had a sand mining operation in the city of Marina, California, along the Monterey Bay coastline that concerned environmentalists and scientists. The California Coastal Commission in March 2016 issued a cease and desist order asking for "administration civil penalties", stating that "the operation is narrowing beaches and impacting environmentally sensitive habitat." Cemex denied the allegations and continued to operate.[42] A settlement was reached in 2017 and CEMEX ended mining in December 2020.[43]

In 2020 CEMEX announced a new climate action strategy, aiming to lower its overall carbon footprint by 35% in 2030 compared to a 1990 baseline, and to deliver net zero concrete by 2050.[44] In May 2021 CEMEX partnered with British oil company BP to research industry-wide decarbonization of cement production.[45]

In 2024, Oishi (Philippine brand) and CEMEX Asia Holdings Ltd. (Philippines) partnered to support sustainable disposal of plastic waste per commitment to environmental stewardship and circular economy principles in industrial operations. “Our partnership with Liwayway allows us to support them with the EPR law (Extended Producer Responsibility Act EPRA of 2022 Republic Act No. 11898), while it also contributes to our Future in Action agenda of becoming a net zero carbon emission company,” said Luis Franco, Cemex CEO. Liwayway will channel plastic packaging waste to Cemex's Solid Cement plant for co-processing.[46]