Cemex 1997 Annual Report Download - page 23

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17
CENTRAL AND SOUTH AMERICA OPERATIONAL REVIEW
help to ensure the success of this important
undertaking. Also, the “whiteness” and techni-
cal characteristics of our white cement is one of
the primary reasons that we landed Bilbao’s air-
port construction project.
Zero Tolerance
CEMEX Spain’s ultimate safety goal is to reduce
the number of workplace accidents to zero. As
part of CEMEX’ company-wide accident pre-
vention and risk reduction program, Valenciana
conducted industrial safety audits at all of its
cement plants. In 1997, projects were also
launched to meet new EEC regulations that
apply to Spain’s cement industry.
All of our Spanish cement plants received
ISO 9002 certification in 1997. We also
expanded the equipment for our mobile envi-
ronmental laboratory.
Building into the next millennium
European bridge construction
The European bridge is the most ambitious
project in which CEMEX Spain has ever par-
ticipated.
Overall, CEMEX’ Central and South
American markets performed quite well dur-
ing 1997. The Venezuelan economy recorded
a strong and solid performance during 1997.
GDP growth was 5.1%, driven primarily by
the petroleum sector. By year-end, inflation
dropped to more than half of its 1996 levels.
We expect about 5% GDP growth for
Venezuela this year. Over the next six to
seven years, the government plans to double
the nation’s oil production capacity.
Colombia’s 1997 GDP increased 3.2%,
fueled by petroleum and coffee exports.
During the first half of the year, the economy
felt the effects of the government’s 1996 fis-
cal adjustment plan, including higher interest
rates. The country’s GDP is expected to
increase from 4 to 5% this year as the econo-
my continues its recovery.
In 1997, Panama’s GDP grew 4.4% and is
expected to expand 5.5% this year. We
attribute much of this growth to the govern-
ment’s aggressive free trade negotiations,
forthcoming privatizations and its ambitious
program to modernize and integrate the
country’s economic activity around the
Panama Canal. This program entails improv-
Central and
South America
log solid growth