Cemex 1999 Annual Report Download - page 24

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22
Value Opportunities
Research and Development – CEMEX Mexico’s state-of-the-art lab-
oratory continues to exceed its goal of introducing at least one new
product every year. Since its 1997 opening, it has developed five
new ready-mix products, accounting for over 20% of 1999 concrete
sales. The facility is on track to launch two new products in 2000.
Energy Efficiency – To increase cost effectiveness, CEMEX Mexico
continuously tests alternative sources of fuel for its plants. Over the
last three years, it has greatly diversified its energy sources to obtain the
lowest-cost energy for its plants and to minimize periods of energy
market volatility.
United States – The American Concrete Pavement Association esti-
mates that the Transportation Equity Act for the 21st Century (TEA-
21) could increase government outlays for highways and bridges by
more than 40% over the next six years. The major impact of TEA-21
on cement and aggregates demand should begin to be seen during
the first half of 2000, and the bottom-line contributions to CEMEX
USA should start to appear during the second half of the year.
Strategic Position – CEMEX’s position as the largest cement and
clinker trader in the world gives CEMEX USA a distinct competitive
advantage. By working closely with CEMEX’s trading operations
and utilizing its strategically positioned cement terminals, CEMEX
USA has the flexibility to import cement from virtually any country
in the world – a key profitability driver.
Preferred brand
CEMEX's ready-mix concrete is the brand used at
construction sites across Houston, Texas, and the
southwestern United States.