building a STRONGER foundation - Cemex
building a STRONGER foundation - Cemex
building a STRONGER foundation - Cemex
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In April 2006, we initiated an expansion project for our cement plant in Latvia in order to increase our cement production<br />
capacity by approximately 0.8 million tons per year to support strong demand in the region. The plant was fully commissioned during<br />
July 2010. We expect our total capital expenditure in the capacity expansion of this plant will be approximately U.S.$411 million,<br />
which includes U.S.$11 million, U.S.$86 million, U.S.$174 million, U.S.$113 million and U.S.$22 million invested during 2006,<br />
2007, 2008, 2009 and 2010, respectively; and we expect to incur U.S.$5 million during 2011.<br />
Capital Expenditures. In total, we made capital expenditures of approximately U.S.$187 million in 2008, U.S.$115 million in<br />
2009 and U.S.$24 million in 2010 in our operations in Latvia, and we currently expect to make capital expenditures of approximately<br />
U.S.$10 million in our operations in Latvia during 2011.<br />
Our Equity Investment in Lithuania<br />
Overview. As of December 31, 2010, we owned an approximate 33% interest in Akmenes Cementas AB, a cement producer in<br />
Lithuania, which operates one cement plant in Lithuania with an installed cement capacity of 1.3 million tons per year.<br />
Our Operations in Austria<br />
Overview. As of December 31, 2010, we held 100% of CEMEX Austria AG, our main subsidiary in Austria. We are a leading<br />
participant in the concrete and aggregates markets in Austria and also produce admixtures. As of December 31, 2010, we owned 38<br />
ready-mix concrete plants and operated seven additional plants through joint ventures. We also owned 23 aggregates quarries,<br />
including six quarries which are currently operated by third parties, and had non-controlling interests in three quarries.<br />
The Cement Industry in Austria. According to the European Commission, total construction investment in Austria declined by<br />
4.2% in 2010. The decline was primarily driven by a reduction in public and commercial projects. According to our estimates, total<br />
cement consumption in Austria decreased by 5% in 2010.<br />
Competition. Our main competitors in the ready-mix concrete and aggregates markets in Austria are Asamer, Lafarge,<br />
Lasselsberger, Porr, Strabag and Wopfinger.<br />
Capital Expenditures. We made capital expenditures of approximately U.S.$15 million in 2008, U.S.$4 million in 2009 and<br />
U.S.$3 million in 2010 in our operations in Austria. We currently expect to make capital expenditures of approximately U.S.$3<br />
million in our operations in Austria during 2011.<br />
See “— Regulatory Matters and Legal Proceedings” for a description of the ongoing arbitration relating to the proposed sale of<br />
our operations in Austria and Hungary.<br />
Our Operations in Hungary<br />
Overview. As of December 31, 2010, we held 100% of CEMEX Hungária Kft., our main subsidiary in Hungary. As of<br />
December 31, 2010, we owned 31 ready-mix concrete plants and six aggregates quarries, and we had non-controlling interests in eight<br />
other ready-mix concrete plants and two other aggregates quarries.<br />
The Cement Industry in Hungary. According to the Hungarian Central Statistical Office, total construction output in Hungary<br />
decreased by 84.9% in 2010, as of November 2010. The decrease was primarily driven by a drop in the construction of <strong>building</strong>s.<br />
Total cement consumption in Hungary was 2.8 million tons in 2010, a decrease of 18% compared to 2009.<br />
Competition. Our main competitors in the ready-mix concrete and aggregates markets in Hungary are Holcim, Heidelberg,<br />
Strabag and Lasselsberger.<br />
Capital Expenditures. We made capital expenditures of approximately U.S.$4 million in 2008 and U.S.$2 million in 2010. No<br />
significant capital expenditures were made in 2009 in our operations in Hungary. We currently expect to make capital expenditures of<br />
approximately U.S.$1 million in our operations in Hungary during 2011.<br />
See “— Regulatory Matters and Legal Proceedings” for a description of the ongoing arbitration relating to the proposed sale of<br />
our Austrian and Hungarian operations.<br />
Our Operations in Other European Countries<br />
Overview. As of December 31, 2010, we operated ten marine cement terminals in Finland, Norway and Sweden through Embra<br />
AS, a leading bulk-cement importer in the Nordic region.<br />
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