Cemex 1997 Annual Report Download - page 24

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18
ing the nation’s infrastructure, simplifying
bureaucratic procedures and developing
tourist complexes, port facilities and indus-
trial parks in the Canal area.
The Dominican Republic had a very good
year. GDP grew 8.2% in 1997, and is expect-
ed to rise 6% this year. The nation’s telecom-
munications and tourism sectors continue to
receive substantial foreign investment. The
economy further benefits from a relatively
low 8.4% rate of inflation.
CEMEX VENEZUELA
Domestic Demand Leaps 16%
Venezuela enjoyed a very strong year.
Construction activity increased 13% in 1997,
and domestic cement demand grew 16% dur-
ing the year. This growth was driven by the
private sector, principally the petroleum indus-
try; whereas, year-over-year public sector con-
struction activity remained relatively flat.
A High Performance Organization
Employee training
CEMEX Venezuela, in conjunction with
IESA, provides a tailored business man-
agement program for its senior execu-
tives.
This year, we anticipate increased public and
private sector building activity, with increased
housing construction. Overall, we project that
cement and concrete demand will rise 13% and
17%, respectively, by year-end 1998.
CEMEX Reaps Benefits Of Efficiency
1997 was a year of consolidation. CEMEX
Venezuela effectively reaped the benefits of the
preceding years’ cost rationalization and opti-
mization programs.
The company’s 1997 cement sales volume
grew 15%, compared to 1996, because of rising
domestic demand and increased capacity utiliza-
tion. Its kilns operated at or over their effective
capacity due to greater operational efficiency
and technological developments. For example,
the Pertigalete plant’s six and seven kilns are
now producing 3,700 metric tons per day, ver-
sus 3,500 metric tons per day a year ago.
Vencemos’ 1997 ready-mix sales volume
rose 40%. This growth was due to the compa-
ny’s continuing ability to identify and tap new
market niches and its expanding ready-mix net-
work. During the year, the company added
seven new concrete facilities, increasing its
nationwide total to 37, and expects to build
four more ready-mix plants in 1998.
Despite the marked rise in CEMEX Venezue-
la’s domestic sales volume, export sales dipped
only 4% in 1997. Its cement-to-clinker sales
ratio further improved to 53%, versus 49% a
year ago. Because cement is priced from 20 to
30% higher than clinker, this significantly
increased the value of 1997 export sales.
For 1997 and the coming years, the compa-
ny’s primary corporate focus is providing quali-
ty products and service to its customers. During
the last quarter of 1996, CEMEX Venezuela
complemented its “Mesa Productiva” comput-
erized customer service centers with the inaugu-
ration of its quality and service to the customer
program.