Cemex
Encyclopedia : C : CE : CEM : Cemex
Cemex SA de CV NYSE: [CX]
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 comapany 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]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.Criticism
Although it is not a monopoly, Cemex, along with Holcim-Apasco, controls the Mexican cement market. This has given rise to allegations that because of the oligopolistic structure in the Mexican cement market (as in many other markets in Mexico) consumers pay a higher price for cement than in other countries. However given the peculiarities of the Mexican cement market, the fact that it is sold mostly in bags, and the fact that cement is not an easily transported commodity make this accusation difficult, if not impossible to prove.[[Citing sources citation needed]]Notes
External links
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