Cemex's Social Responsibility Initiatives|Business Ethics|Case Study|Case Studies

Cemex's Social Responsibility Initiatives

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Case Details:

Case Code : BECG047
Case Length : 14 Pages
Period : 1996 - 2004
Pub. Date : 2005
Teaching Note :Not Available
Organization : Cemex
Industry : Cement
Countries : Mexico

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

Cemex's history dates back to 1906 when the Cementos Hindalco plant was started in northern Mexico. In 1920, another company, Cementos Portland Monterrey started its operations with 20,000 tonnes of annual cement production capacity.

In 1931, Cementos Hindalco and Cementos Portland Monterrey merged to form Cementos Mexicanos, which came to be known as Cemex.

Between 1931 and 1970, Cemex grew rapidly, emerging as the largest cement manufacturer in Mexico. In 1976, Cemex's shares were listed on the Mexican Stock Exchange. In the same year, Cemex acquired three cement plants in Guadalajara.7

In 1987; Cemex further strengthened its position by acquiring another cement company, Cementos Anahuac. In 1989, Cemex acquired Cementos Tolteca, the second largest cement producer in Mexico, becoming one of the top cement companies in the world.

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In 1992, Cemex further strengthened its position in the global cement business by acquiring the two largest cement manufacturing companies in Spain - Valenciana and Sanson. In 1994, Cemex acquired Vencemos, Venezuela's largest cement company and expanded its US operations by buying a cement plant in Texas.

By 1996, Cemex became the third largest cement company in the world when it took a majority stake in two cement companies in Colombia - Diamante and Samper.

Continuing on its acquisition drive, Cemex bought up a 25% equity stake in Semen Gresik, Indonesia's largest cement producer, in September 1999. It also purchased a 99.9% stake in APO cement in Philippines. In 2001, Cemex entered Thailand's cement market by acquiring 99% stake in the Saraburi cement company. Thus, by the early 2000s, Cemex had transformed itself from a regional company to a leading cement company in the world through its many acquisitions...

Excerpts >>

7] Guadalajara is the capital of Jalisco, a central western state in Mexico.


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