Cemex

CEMEX S.A.B. de C.V.
Sociedad Anónima Bursátil de Capital Variable
Traded asCEMEX
CX
CLH
CHP
IndustryBuilding materials
Founded1906; 112 years ago (1906)
HeadquartersMonterrey, Mexico
Area served
Worldwide
Key people
Rogelio Zambrano Lozano
(Executive Chairman)
Fernando A. González
(CEO)
Productscement, ready-mix concrete, construction aggregates
RevenueIncrease US$ 18 billion (2016)
Decrease US$ 800 million (2016)
Total assetsDecrease US$ 34.9 billion (2014)
Number of employees
50,000
Websitewww.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, Mexico. It manufactures and distributes cement, ready-mix concrete and aggregates in more than 50 countries. It is the second largest building materials company worldwide, only after LafargeHolcim.

Lorenzo Zambrano was the chairman and chief executive officer until his death on May 21, 2014. 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.[citation needed]

Cemex ready-mix truck departing jobsite after dispensing concrete for a multi-storey residential project. The location is Villahermosa, Mexico.

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.[1] The company's world headquarters are in San Pedro Garza García, a city that is part of the Monterrey metropolitan area in the northeastern Mexican state of Nuevo León. [2][3][4][5][6]

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.[7]

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.[8]

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 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-)

In November 2006, an American embassy cable released via Wikileaks listed Cemex among "Mexico's monopolists", with a market share of 87.6%; its competitor Holcim Apasco was listed with a market share of 12.4%.[9]

Shortly after the apparent finalization of the Rinker deal on 2007, the United States Department of Justice brought an antitrust lawsuit against CEMEX, blocking the acquisition.[10] 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.[11]

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.[12] 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,[13] despite agreements being reached in mid-2008 with the other two major cement producers.[14] In December 2011, an agreement was reached, with Cemex receiving $600m in compensation, and benefiting from the cancellation of $154m in debt.[15]

After having problems with the Mexican peso devaluation of 2008, including problems with derivatives,[16][17] CEMEX had to rethink its international standings to decrease debt and avoid a default. In June 2009, CEMEX sold its Australian operations to Holcim for A$ 2.2 billion (US$1.75 billion) helping refinance its US$14 billion debt, which partly was due to the acquisition, two years earlier, of the Rinker Group.[18]

In December 2010, DOL Resolves Employee Back Wage Case With CEMEX - The U.S. Department of Labor announced the filing of a consent judgment in a case against CEMEX Inc. and the recovery of $1,514,449 in overtime back wages for 1,705 current and former ready-mix drivers who worked in eight states.[19]

In February 2018, the company reported record earnings of $750 million for all of 2016, the highest in a decade. Lowering company debt after recent acquisitions were a main cause of the company's financial performance.[20]

Other Languages
dansk: Cemex
Deutsch: Cemex
español: Cemex
Esperanto: Cemex
فارسی: سمکس
français: Cemex
한국어: 세멕스
hrvatski: Cemex
Nederlands: Cemex
日本語: セメックス
norsk: Cemex
português: Cemex
русский: Cemex
suomi: Cemex