CEMEX case study

Today CEMEX is one of the world’s largest building materials companies. It is a leading supplier of
aggregates (sand, gravel and crushed rock), cement and readymixed concrete. It also produces
asphalt and concrete products, and has a significant share of those markets. It operates in more
than 50 countries and employs over 50,000 people.

12780749405  CEMEX UK has three cement plants, 60 quarries and nearly 230 readymixed concrete
plants. CEMEX’s customers range from multinational building companies to individuals building their
own homes.  In the UK, CEMEX generates £1 billion in annual sales. CEMEX plays an essential role in
contributing to creating Britain's infrastructure, housing, schools, offices and hospitals.

Quarries can only be located where minerals occur. However, the business can make decisions where
to locate its secondary activity. For example, a readymixed concrete plant could be close to its
raw materials (in a quarry) or close to its markets (in a city). CEMEX’s awareness of how its
choice of location has an impact on the local environment is vital to its long-term business
performance.

CEMEX adopts a sustainable approach wherever possible:
  * It transports over 30 million tonnes a year by road, rail, river and sea, including aggregates,
cement and fuel. Around 12% of total aggregates movements are made by rail. CEMEX is committed to
use of rail, as these journeys give five Times fewer emissions than similar journeys by road.
  * sf059 CEMEX uses water transport where possible to help minimize its carbon footprint. It
transports products via sea, rivers, conveyors and underground pipelines. The longest pipeline is
57 miles long. This saves more than 400 lorry journeys per day and supports the UK Government’s
objective of getting trucks off the road wherever possible. It uses barges to transport aggregates
on the River Severn, where one barge can carry 350 tonnes, the equivalent of 18 HGV loads or 36
lorries.
  * Making cement is energy-intensive. In 2009, CEMEX UK increased by more than 30% the use of
alternative fuels such as chipped tyres and treated household waste to heat its kilns. This helped
reduce emissions of CO2 across the business by 10%.
  * It replaces a proportion of the cement clinker in the concrete-making process with by-products
from other industries. These include slag from the steel industry and fly ash from coal fired power
stations. This helps to preserve scarce minerals for future generations. Using this method reduces
the carbon footprint of cement production by 50%.

As a global business, CEMEX needs to focus on financial returns to ensure long-term business
sustainability, but these are not its only measure of performance. The company believes strongly
all goals need to be in balance. This is set out in its position statement: ‘CEMEX is dedicated to
building a better future and couples financial achievements with a firm commitment to sustainable
development.’

 Since entering the UK, CEMEX has invested between £30 and £60 million per annum across the
business. This includes the modernisation of equipment and plants to deliver environmental
improvements. For example, in 2009, CEMEX commissioned a £49 million new cement plant at Tilbury in
Essex, which boasts the first vertical cement mill in the country, which uses 20-40% less energy
than traditional horizontal mills.