Description of cement industry in Mexico?

CEMEX
Mexico
As the top cement and ready-mix concrete manufacturer in Mexico, we have nationwide market
coverage. Modern plants on the countrys Atlantic and Pacific coasts enable us to take advantage
of low-cost marine transportation to the US, Central and South American, and Caribbean
markets.
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User base
Cement is primarily a retail product in Mexico. Retail sales of cement through distributors
account for more than 60 percent of Mexicos demand. Because individuals account for as much
as 30 percent of Mexicos total demand, strong brand identification and an extensive distribution
network are necessary for success in the market. CEMEX owns the registered trademarks for
Mexicos most popular cement brands such as Cemento Monterrey, Cemento Tolteca, and
Cemento Anhuac.

Value initiatives
In September 2006, we announced a plan to construct a new kiln at our Tepeaca cement plant in
Puebla, Mexico. The current production capacity of the Tepeaca cement plant is approximately
3.1 million tons of cement per year. The construction of the new kiln, which is designed to
increase our total production capacity in the Tepeaca cement plant to approximately 7.2 million
tons of cement per year, is expected to be completed in 2018.

In 2001, we launched the Construrama program, a registered brand name for construction
material stores. Through the Construrama program, we offer to an exclusive group of our
Mexican distributors the opportunity to sell a variety of products under the Construrama brand
name, a concept that includes the standardization of stores, image, marketing, products and
services. As of December 31, 2013, approximately 703 independent concessionaries with more
than 1,827 stores were integrated into the Construrama program, with nationwide coverage.

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Company Profile
CEMEX is a global building materials company that provides high-quality products and reliable
service to customers and communities in more than 50 countries throughout the world, and we
maintain trade relationships in over 100 nations. We work hard to develop and deliver the best
solutions in cement, ready-mix, and aggregates...so we can transform ideas into reality.

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A global industry leader

Annual sales of US$15.71 billion
One of the leading cement manufacturers in the world
World's leading supplier of ready-mix concrete, and one of the world's largest suppliers of aggregates
One of the world's top traders of cement and clinker
Close to 44,000 employees worldwide
Sales Distribution*

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Key Company Figures

Worldwide presence (as of December 31, 2014)

Presence in more than 50 countries worldwide with approximately 44,000 employees

Annual production capacity of approximately 94 million metric tons of cement
2014 annual production levels of 56 million cubic meters of ready-mix concrete and 168 million metric tons
of aggregates
55 cement plants (plus 12 cement plants with a minority participation), 1,736 ready-mix concrete facilities,
341 aggregate quarries, 233 land-distribution centers, and 63 marine terminals
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Financial highlights
Based on an average of 1,256 and 1,170 million American Depositary Shares (ADSs) for 2014 and 2013,
respectively.
2

For the readers convenience figures are presented in US dollars. For statements of operations accounts, these
figures result from translating the local currency amounts into US dollars at the average exchange rate for the year,
which approximates a convenience translation of the Mexican peso results for 2014 and 2013 using the average
exchange rates for the year of 13.37 MXN/US$ and 12.85 MXN/US$, respectively. For balance sheet accounts, US
dollar figures result from translating the local currency amounts into US dollars at the closing exchange rate for the
year, which approximates a convenience translation of the Mexican peso amounts at the end of each year using the
end-of-year exchange rate of 14.74 MXN/US$ and 13.05 MXN/US$, respectively.
3

2014 and 2013 figures are presented under IFRS in accordance with our 2014 Audited Consolidated Financial
Statements.
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http://www.cemex.com/InvestorCenter/KeyCompanyFigures.aspxhttp://www.cemex.com/Investo
rCenter/KeyCompanyFigures.aspx

Business Strategy
To achieve our mission, our strategy is to create value by building and managing a global portfolio of integrated
cement, ready-mix concrete, aggregates, and related businesses. We accomplish this by ensuring that we:
Value our people as our main competitive advantage
Help our customers succeed
Pursue markets that offer long-term profitability
Ensure sustainability is fully embedded in our business
At CEMEX, we ensure sustainability is fully embedded in our business strategy and day-to-day operations. Our goal
is to provide building solutions that meet the needs of a resource-constrained world, to minimize the ecological
footprint of our operations, and to foster closer relationships with all of our relevant stakeholders.
Among our priorities, we look to take the lead in sustainable construction through the development of products,
services, and building solutions for a low-carbon economy. We also actively participate in low-income housing
programs and high-scale infrastructure projects.
Moreover, as part of our efforts to reduce our ecological footprint, we increase our use of alternative fuels and raw
materials, improve our energy efficiency, and contract renewable power where feasible. Additionally, we optimize air
quality, waste management, and recycling; diminish disturbances from noise and dust; and implement biodiversity
action plans at our quarries.
Furthermore, we engage our key stakeholders. In particular, we place a top priority on the health and safety of our
employees, our contractors, and our communities. We are committed to playing a responsible role in the social and
economic development of our local communities, and we collaborate with governments, NGOs, and opinion leaders
to anticipate and address emerging social demands.
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Cement
Cement is the main basic ingredient of ready-mix concrete. Whether in bags or in bulk, CEMEX provides its
customers with high-quality branded cement products for their construction needs.

Cement is a fine powder, obtained from the calcination at 1,450C of a mix of limestone, clay, and iron ore. The
product of the calcination process is clinkerthe main ingredient of cementthat is finely ground with gypsum and
other chemical additives to produce cement.

Find out more about our main types of cement

Cement is the most widely used construction material worldwide. It provides beneficial as well as desirable
properties, such as compressive strength (construction material with highest strength per unit cost), durability, and
aesthetics to a variety of construction applications.
Some properties of cement-based products are:

Hydraulic

The hydration reaction between cement and water is unique: the material will set and then harden. Interestingly, the hydr

Aesthetic

Prior to setting and hardening, hydrated cement exhibits plastic behavior. Therefore, it can be cast into molds of different

Durable

When properly used (e.g., good concrete mix design practices), cement can yield structures which have a long service li

Acoustic

Cementbased material can provide excellent noise insulation with the appropriate design.

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Period Ending

Dec 31, 2014

Dec 31, 2013

Assets
Current Assets
Cash And Cash Equivalents

854,000

1,159,000

Net Receivables

2,130,000

2,518,000

Inventory

1,226,000

1,297,000

604,000

298,000

Short Term Investments

Other Current Assets

Total Current Assets

4,814,000

5,272,000

Long Term Investments

1,349,000

1,610,000

13,767,000

15,707,000

13,127,000

13,357,000

Accumulated Amortization

Other Assets

1,880,000

1,935,000

34,937,000

37,881,000

3,678,000

3,821,000

Short/Current Long Term Debt

984,000

302,000

Other Current Liabilities

781,000

425,000

5,443,000

4,548,000

Long Term Debt

12,980,000

14,280,000

Other Liabilities

5,119,000

6,331,000

Deferred Long Term Liability Charges

1,342,000

1,398,000

Minority Interest

1,158,000

1,141,000

26,042,000

27,697,000

Misc. Stocks Options Warrants

Redeemable Preferred Stock

Preferred Stock

Common Stock

7,148,000

6,791,000

Retained Earnings

1,478,000

3,072,000

Treasury Stock

Capital Surplus

269,000

321,000

Property Plant and Equipment

Goodwill
Intangible Assets

Deferred Long Term Asset Charges

Total Assets
Liabilities
Current Liabilities
Accounts Payable

Total Current Liabilities

Negative Goodwill

Total Liabilities
Stockholders' Equity

Other Stockholder Equity

Total Stockholder Equity

8,895,000

Net Tangible Assets

(4,232,000)

10,184,000

(3,173,000)

CEMEX- Building
Solutions.3gp

HOW IS CEMENT MADE?

1. Mining the raw material
Limestone and clay are blasted from rock quarries by boring the rock and setting off explosives
with a negligible impact of the environment, due to the modern technology employed.

2. Transporting the raw material

Once the huge rocks have been fragmented, they are transported to the plant in dump trucks or
by conveyor belt.

3. Crushing
The quarry stone is delivered through chutes to the crushers, where it is reduced by crushing or
pounding to chunks approximately 1 inches in size.

4. Prehomogenization
Prehomogenization is the proportional mix of the different types of clay, limestones, or any other
required material.

5. Raw material storage

Each of the raw materials is transported separately to silos, where it later will be added in
specific amounts according to the particular type of cement being produced.

6. Raw material mill

This takes places in vertical steel mill, which grinds the material through the pressure exerted by
three conical rollers. Which roll over a turning milling table. Horizontal mills, inside which the
material is pulverized by means of steel balls, are also used in this phase.

7. Raw meal homogenization

This process takes place in silos equipped for obtaining a homogenous mix of the material.

8. Calcination
Calcination is the core portion of the process, in which huge rotary kilns come into play. Inside,
at 1400 degrees C, the raw material is transformed into clinker: small, dark gray nodules 3-4
centimeters in diameter.

9. Cement milling
The clinker is ground by different-size steel balls while it works its way through the mills two
chambers, with gypsum being added to extend cement setting times.

10. Cement packaging and shipping

The cement is then housed in storage silos, from where it is hydraulically or mechanically
extracted and transported to facilities where it will be packaged in sacks or supplied in bulk. In
either case, it can be shipped by rail car, freighter truck or ship.

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