Operation

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CEMEX Global Operation

2012

Company presentation

CEMEX is a global leader in the building materials industry that provides high-quality products and reliable service to customers and communities worldwide. They aim to serve the needs of their customers and create value for their stakeholders by becoming the world's most efficient and innovative building materials company. Their operation network produces, distribute and markets cement , ready-mix concrete, aggregated and related buildings materials in more than 50 countries, maintaining trade relationship in approximately 102 nation. Annual production capacity of more than 96 million metric tones of cement, of which approximately 55 million cubic meters of ready – mix concrete and more than 160 million metric tones of aggregates. 61 cement plants, 1,921 ready mix concrete facilities, and a minority participation in 12 cement plants. 377 aggregate quarries, 226 land distribution center, and 70 marine terminals.1

The Company structure from the 2011 annual report is presented in the Exhibit 1

Sales Distribution from 2011 Annual report is presented bellow [pic]

* As of December 31st, 2011

Integration Process

Over the years CEMEX grow and expand it’s operation trough M&A projects acquiring other cement business in the country of interest. The scope of going Global was to be closer to the to the raw materials, and closure to the customer to reduce the high transportation costs.

ensure low cost of last millage. It was clear that competitive production costs meant that there was only a limited distance within which a plant could deliver cement at competitive prices. Road transportation was the most expensive, and limited the effective distribution radius to 150-300 miles.2 Waterborne transportation was the most economical and, as a result of innovations since the mid-1950s, had led to a substantial expansion of MES. 3

CEMEX develop over the years a strong expertise in successfully integrating...