Cemex 1997 Annual Report Download - page 29

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23
Lowering energy costs
Petroleum coke for CEMEXÕ Panama operations.
By replacing 80% of its fuel oil with petroleum
coke, the company reduced its energy costs by
25%.
CEMEX Panama
Cement growth
(percentage vs. previous years)
Soaring Sales
CEMEX PanamaÕs 1997
cement volume grew 29%.
CENTRAL AND SOUTH AMERICA OPERATIONAL REVIEW
CEMEX CARIBBEAN
Over 25 Countries Served
The scope of our Caribbean operations contin-
ued to expand over the course of 1997. Directly
and through our local partners, we now serve
more than 25 different countries.
The region’s countries are increasingly open
to globalization and increased foreign invest-
ment. In 1998, we expect the Basin’s GDP to
grow from 2 to 3%, spurred by tourism and
housing.
In 1997, the Dominican Republic recorded a
13.5% increase in domestic cement consump-
tion, with a 5% increase projected for 1998.
The private sector drove 1997 construction
activity. In 1998, we expect public sector
spending on tourism and public housing to fuel
domestic demand.
Dominican Economy Spurs Increased
Housing
For the year, our Caribbean operations gener-
ated a total cement trading volume of 1.9 mil-
lion metric tons. In the Dominican Republic,
the company’s net
sales increased
24
%
(in dollar
terms) versus a year ago because of higher pri-
vate sector demand, including residential, hotel
and road construction.
At the end of 1996, we entered the local
ready-mix market, starting with 10 trucks and
two plants. By year-end 1997, these operations
grew to 40 trucks and six plants.
We are working to consolidate CEMEX’ uni-
form business culture and standards, such as
efficiency and customer service quality, across
the region. There is now greater integration
within our Venezuelan, Caribbean and
Dominican operations in terms of operations,
logistics, technology and information flow.