building a STRONGER foundation - Cemex

Our Operating Network in Germany
Description of Properties, Plants and Equipment. As of December 31, 2010, we operated two cement plants in Germany (not
including the Mersmann plant). As of December 31, 2010, our installed cement capacity in Germany was 4.9 million tons per year
(excluding the Mersmann plant cement capacity). We estimate that, as of December 31, 2010, the limestone permitted proven and
probable reserves of our operations in Germany had an average remaining life of approximately 42 years, assuming 2006-2010
average annual cement production levels. As of that date, our operations in Germany included three cement grinding mills, 177 readymix
concrete plants, 44 aggregates quarries, two land distribution centers for cement, fie land distribution centers for aggregates, and
three maritime terminals, two for cement and one for aggregates. In 2006, we closed the kiln at the Mersmann cement plant, and we
do not contemplate resuming operations at this plant.
Capital Expenditures. We made capital expenditures of approximately U.S.$49 million in 2008, U.S.$31 million in 2009 and
U.S.$47 million in 2010 in our operations in Germany, and we currently expect to make capital expenditures of approximately
U.S.$32 million in 2011.
Our Operations in France
Overview. As of December 31, 2010, we held 100% of CEMEX France Gestion (S.A.S.), our main subsidiary in France. We are
a leading ready-mix concrete producer and a leading aggregates producer in France. We distribute the majority of our materials by
road and a significant quantity by waterways, seeking to maximize the use of this efficient and sustainable alternative.
The Cement Industry in France. According to INSEE (National Institute of Statistics and Economic Studies in France), total
construction output in France declined by 5% in 2010. The decrease was primarily driven by an estimated decrease of 3.7% in the
public works sector and a decrease of 17% in the non-residential sector, while residential construction increased approximately 1.2%.
According to the French cement producers association, total cement consumption in France reached 19.8 million tons in 2010, a
decrease of 3% compared to 2009.
Competition. Our main competitors in the ready-mix concrete market in France include Lafarge, Holcim, Italcementi and Vicat.
Our main competitors in the aggregates market in France include Lafarge, Italcementi, Colas (Bouygues) and Eurovia (Vinci). Many
of our major competitors in ready-mix concrete are subsidiaries of French cement producers, whereas we must rely on sourcing
cement from third parties.
54