Cemex 1999 Annual Report Download - page 27

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Egypt – After three years of increasing cement exports to the
expanding Egyptian market, CEMEX acquired a 77% stake of Assiut
Cement Co., the nation’s largest cement producer. Demand well
exceeds domestic supply in Egypt, one of Africa’s fastest-growing
cement markets.
The Philippines – In February 1999, we consolidated our position as
one of the Philippines’ top cement producers by acquiring a 99.9%
economic interest in APO Cement Corporation. This, coupled with
the company’s controlling stake in Rizal Cement Company, gives
CEMEX nationwide coverage and access to the Philippines’ main mar-
kets of Manila, Visayas, and Mindanao.
Value Opportunities
Indonesia – The Indonesian cement industry is one of the two largest
in Southeast Asia, accounting for around one-fourth of the region’s
consumption. In September 1999, CEMEX further increased its interest
in PT Semen Gresik, Indonesia’s largest producer, to 25%. Because
of its strategic location, size, significant growth potential, and role as
an anchor for the company’s Southeast Asian trading network,
Indonesia is an important element of CEMEX’s Asia strategy.
PMI – CEMEX’s multinational PMI team, comprising executives from
Colombia, Mexico, the Philippines, Spain, and Venezuela, cut the time
of APO Cement’s PMI by almost two-thirds. As a result of these
efforts, APO will enjoy significant recurring cost savings.
Self-service Cement – CEMEX Spain introduced a self-service system
for customers at its cement facilities. Now, individual consumers can
pull up their trucks, fill them up, and pay with a credit card. It’s just
that easy.
TRADING
Market highlights
Record Volume – Our 1999 total trading volume was more than 13
million metric tons of cement and clinker. Almost 60% of CEMEX’s
trading volume came from third parties, including suppliers in China,
England, Korea, Morocco, Romania, Russia, Thailand, Tunisia, Turkey,
and Ukraine.
Partners – We market cement to over 60 countries worldwide. Our
major international trading partners are located in Bangladesh, the
Canary Islands, the Caribbean, Egypt, the Ivory Coast, Mauritius,
Morocco, Nigeria, Portugal, Singapore, Taiwan, and the United States.
Exports – In 1999, roughly 5.7 million metric tons of our total trading
volume came from the company’s operations in Costa Rica, Indonesia,
Mexico, the Philippines, Spain, and Venezuela. This figure includes
493,000 metric tons of white cement exported from Mexico and Spain.
Floating Silo – CEMEX’s floating silo, Corregidora, began operating in
the port of Adabya, Egypt, in the beginning of 1999. This state-of-
the-art facility has a bagging capacity of 5,000 metric tons per day and
a discharge capacity of 250 metric tons per hour.
Value Opportunities
Global Reach – This year, the company’s international trading opera-
tions will allow it to trade more than 2.6 million metric tons of cement
from Indonesia and the Philippines. Due to lagging demand in those
markets, Southeast Asian producers are increasingly interested in
CEMEX’s ability to trade and export large volumes of cement and
clinker to other markets.
Infrastructure Development – CEMEX continues to expand its trading
infrastructure to meet global demand. Specifically, it began construction
of a grinding mill in Bangladesh to facilitate imports from Indonesia.
Increasing presence
CEMEX’s trading network allows it to diversify
into growing markets.