building a STRONGER foundation - Cemex

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