Cemex 1997 Annual Report Download - page 22

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16
SpainÕs ÒMost AdmiredÓ Company
Our Spanish operations reported substantial
1997 sales growth across all product lines. Total
cement production increased 9% versus a year
ago, because of rising domestic demand and a
significant reduction in cement imports.
Productivity per worker improved 12% com-
pared to 1996.
Ready-mix concrete sales volume grew 17%,
with aggregates and mortar rising 18% and
25%, respectively. Half of the company’s aggre-
gates volume came from direct sales to the cus-
tomer, with the remainder sold through our
ready-mix operations.
In October, Valenciana was named Spain’s
most admired company by Actualidad Econó-
mica, a leading national business publication.
CEMEX Spain received this award because of its
strong brand, top-quality products, improved
customer service and healthy financial position.
During the year, Cementos Morata, the last
of CEMEX’ 1992 acquisitions, was merged into
the company. Now, all acquired plants and sub-
sidiaries are fully integrated into the CEMEX
system.
In 1997, we continued to leverage our posi-
tion as the world’s largest producer of white
cement. Two years ago, we began to expand our
sales to different countries, exporting 100,000
metric tons of white cement. By year-end 1997,
white cement exports increased to more than
200,000 metric tons, a 68% increase over
1996. We exported white cement to Israel,
North Africa, the United States, Europe and the
Arab states.
In 1998, we expect to increase white cement
exports by 10% and enter new markets, such as
Turkey and some European countries.
The North European bridge contract is a tes-
tament to the success of our new customer ser-
vice laboratory. Located in Buñol, Spain, this
facility designed a special cement that can with-
stand the extreme weather conditions of the
Baltic Sea. This lab’s technical assistance offers
an additional competitive advantage that will
White cement exports
thousands of metric tons
Expanding White
Cement Exports
Leveraging our leading position,
we have expanded our white
cement exports to Israel, North
Africa, the U.S., Europe and the
Arab states.
"É one of CEMEX' strengths in
growing from a medium-size
company to a large company
has been that its EBITDA mar-
gins have been 10 percentage
points higher than those of its
international competitors."
Ben Uglow, Robert Flemings, Inc.
(Institutional Investor, 12/97)
White cement leaders
CEMEX SpainÕs white
cement exports increased
more than 68% over 1996.