Cemex Essay

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Summary CEMEX was founded in 1906 with the opening of Cementos Hidalgo plant in North Mexico. Eleven years later (in 1931) Cementos Hidalgo and Cementos Portland Monterrey merged and became the company that is now known as CEMEX. The company continued its development through acquisitions in Mexico (Cementos Maya’s, Cementos Guadalajara). In 1976 the company went public on the Mexican stock exchange. In 1982, Mexico experienced a severe debt crisis due to the country’s expensive policies based on import substitution and state owned industrialization. From that point, Mexico shifted from a import substitution industrialization to a market based on deregulation, liberalization and free trade. Mexico joined the general agreement on trade and tariffs. This pushed CEMEX to consolidate its operations on the Mexican cement market in order to make entry less attractive for foreign companies. In 1985, Zambrano, a grandson of the founder of CEMEX, took over as CEO and is still in charge today. He based the company’s growth strategy on geographical diversification and its operating strategy on the development of the “CEMEX Way” and an efficient information system He is probably the main artisan of CEMEX’s impressive growth. In 1989, CEMEX had become the largest Mexican cement producer with the acquisition of Tolteca. CEMEX’s acquisitions were expensive but they gave it the size and the financial capabilities it needed realize it’s growth strategy. Moreover, the US anti dumping measures on Mexican cement made it urgent to do so. SWOT anallysiis SWOT ana ys s Strengths • Balanced sales: as a result of the incorporation of RMC, Cemex’s sales are balanced between its subsidiaries based in the Americas and the rest of the world 6 International diversification: Cemex’s operations are geographically diversified, having a direct presence in most of its main

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