CEMEX, S.A.B. de C.V. Profile

CEMEX, S.A.B. de C.V. (Cemex) operates as a cement company worldwide.

The company is a leading global provider of building materials and solutions, including cement, ready-mix concrete, aggregates and Urbanization Solutions.

Urbanization Solutions is one of the company’s four core businesses. It is a business that complements its value offering of products and solutions, looking to connect with the broader city ecosystem. It seeks to address urbanization challenges and provide means to all stakeholders in the construction value chain to enable sustainable urbanization by focusing on four market segments, such as performance materials, waste management, industrialized construction, and related services.

In addition, the company is one of the world’s largest suppliers of aggregates, primarily hard rock, sand, and gravel, obtained from quarries, to be used in ready-mix concrete and other concrete-based products, such as blocks and pipes.

As of December 31, 2022, the company had 89.2 million tons of annual installed cement production capacity and the company’s cement sales volumes in 2022 were 63.4 million tons.

The company is one of the largest ready-mix concrete and aggregates companies in the world with annual sales volumes of 50.1 million cubic meters and 139.2 million tons, respectively, in each case, based on the company’s annual sales volumes in 2022. In 2022, the company traded 11.8 million tons of cementitious and non-cementitious materials, in 92 countries, including 9.6 million tons of cement and clinker and 2.3 million tons of cementitious and other materials.

The company is an operating and a holding company engaged, directly or indirectly, through its operating subsidiaries, primarily in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates, clinker, other construction materials and urbanization solutions throughout the world. The company also provides related services and reliable construction-related services to customers and communities, and maintains business relationships in more than 50 countries throughout the world.

The company operates in different parts of the world, with operations in Mexico, the United States, the EMEAA region and the SCA&C region.

As of December 31, 2022, the company’s cement production facilities were located in Mexico, the United States, the United Kingdom, Germany, Spain, Poland, the Czech Republic, Croatia, Egypt, the Philippines, the UAE, Colombia, Panama, Nicaragua, Guatemala, the Dominican Republic, Puerto Rico, Trinidad and Tobago, Jamaica and Barbados.

On August 31, 2022, the company, through certain of its subsidiaries, concluded the sale agreed in December 2021 of the company’s operations in Costa Rica and El Salvador to affiliates of Cementos Progreso Holdings, S.L. The divested assets consisted of one fully integrated cement plant, one grinding station, seven ready-mix plants, one aggregate quarry, as well as one distribution center in Costa Rica and one distribution center in El Salvador.

On July 11, 2022, through a subsidiary in Germany, the company completed the acquisition of a 53% stake in the German aggregates company, ProStein. The majority stake in ProStein’s assets adds a full range of fine and hard aggregates to the company’s aggregates portfolio. In addition to supplying the greater Berlin area, the additional capacity can supply several urban centers in Poland and the Czech Republic. ProStein’s assets include six active hardstone plants and six construction, demolition, and excavation waste (‘CDEW’) recovery sites.

On October 25, 2022, the company created a partnership with Advent International (‘Advent’). As part of the partnership the company sold to Advent a 65% stake in Neoris N.V. (‘Neoris’).

Businesses

The company strives to provide superior building solutions in the markets the company serves. To this end, the company tailors its products and services to suit customers’ specific needs, from home construction, improvement and renovation to infrastructure, commercial, industrial, agricultural and marine/hydraulic applications.

Cement

Cement is a binding agent, which, when mixed with sand, stone or other aggregates and water, produces either ready-mix concrete or mortar. Whether in bags or in bulk, the company provides its customers with high-quality branded cement products and services. The company uses its professional knowledge and experience to develop customized products designed to satisfy the company’s clients’ specific requirements and that also foster sustainable construction. In many of the countries where the company has cement operations, a large proportion of cement sold is a bagged, branded product. The company often delivers the product to a large number of distribution outlets such that the company’s bagged, branded cement is available to the end users at a point of sale in close proximity to where the product will be used. The company seeks to develop brand identity and recognition in the company’s bagged product.

The company manufactures cement through a closely controlled chemical process, which begins with the mining and crushing of limestone and clay, and, in some instances, other raw materials. The clay and limestone are then pre-homogenized, a process which consists of combining different types of clay and limestone. The mix is typically dried, then fed into a grinder which grinds the various materials in preparation for the kiln. The raw materials are calcined, or processed, at a very high temperature in a kiln, to produce clinker. Clinker is the intermediate product used in the manufacture of cement. For limestone, clay and gypsum, requirements are based on chemical composition that, depending on the other materials available, matches the quality demanded by the production process. For cement limestone, clay and gypsum, the company runs chemical tests to prepare the mining plan of the quarry, to confirm material quality and reduce variations in the mineral content. The company considers that limestone and clay quality of the company’s cement raw materials quarries are adequate for the cement production process.

There are two primary processes used to manufacture cement: the dry process and the wet process. The dry process is more fuel efficient. As of December 31, 2022, 48 of the company’s 50 operative cement production plants used the dry process and two used the wet process. The company’s operative production plants that use the wet process are in Nicaragua and Trinidad and Tobago. In the wet process, the raw materials are mixed with water to form slurry, which is fed into a kiln. Fuel costs are greater in the wet process than in the dry process because the water that is added to the raw materials to form slurry must be evaporated during the clinker manufacturing process. In the dry process, the addition of water and the formation of slurry are eliminated, and clinker is formed by calcining the dry raw materials. In the most modern application of this dry process technology, the raw materials are first blended in a homogenizing silo and processed through a pre-heater tower that utilizes exhaust heat generated by the kiln to pre-calcine the raw materials before they are calcined to produce clinker.

Clinker and gypsum are fed in pre-established proportions into a cement grinding mill where they are ground into an extremely fine powder to produce finished cement. The company primarily covers its gypsum needs from third parties; however, the company also operates gypsum quarries in the United States, Spain, the Dominican Republic and Egypt. The company’s main types of cement include the following:

Gray Portland Cement: The company’s gray portland cement is a high-quality, cost-effective building material, mainly composed of clinker, that meets applicable chemical and physical requirements and is widely used in all construction segments: residential, commercial, industrial, and public infrastructure.

White Cement: The company manufactures this type of cement with limestone, low iron content kaolin clay, and gypsum. Customers use the company’s white portland cement in architectural works requiring great brightness and artistic finishes, to create mosaics and artificial granite, and for sculptural casts and other applications where white prevails.

Masonry or Mortar: Masonry or mortar is a portland cement that the company mix with finely ground inert matter (limestone). The company’s customers use this type of cement for multiple purposes, including concrete blocks, templates, road surfaces, finishes, and brick work.

Oil-well Cement: The company’s oil-well cement is a specially designed variety of hydraulic cement produced with gray portland clinker. It usually forges slowly and is manageable at high temperatures and pressures. Produced in classes from A to H and J, the company’s oil-well cement is applicable for different depth, chemical aggression, or pressure levels.

Blended Cement: Blended hydraulic cements are produced by inter-grinding or blending portland cement and supplementary cementitious materials, such as ground granulated blast furnace slag, fly ash, silica fume, calcined clay, hydrated limestone, and other pozzolans. The use of blended cements in ready-mix concrete reduces mixing water and bleeding, improves workability and finishing, inhibits sulfate attack and the alkali- aggregate reaction, and reduces the heat of hydration. Cemex offers an array of blended cements which have a lower CO2 footprint resulting from their lower clinker content due to the addition of supplementary cementitious materials. The use of blended cements reinforces the company’s dedication to sustainable practices and furthers the company’s intention of offering an increasing range of more sustainable products.

Ready-Mix Concrete

Ready-mix concrete is a combination of cement, fine and coarse aggregates, admixtures (which control properties of the concrete including plasticity, pumpability, freeze-thaw resistance, strength and setting time), and water. The company tailors its ready-mix concrete to fit the company’s clients’ specific needs. By changing the proportion of water, aggregates, and cement in the mix, the company modify the company’s concrete’s resistance, manageability, and finish. The company also uses additives to customize its concrete consistent with the transportation time from the company’s plant to the project, weather conditions at the construction site, and the project’s specifications. From the company’s water-resistant to its self- compacting concrete, the company produces a great variety of specially designed concrete to meet the many challenges of modern construction.

The company develops solutions based on its thorough knowledge and application of ready-mix concrete technology. The company offers its customers tailor-designed concrete. Cemex ready-mix concrete technologists are able to modify the properties of concrete through the use of innovative chemical admixtures, combined with the proper proportions of the various concrete constituents. For example, depending on the type of application and jobsite requirements, the company can design ready-mix concrete that is more fluid, stronger, develops strength faster, and also retains workability longer. Through the development of chemical admixtures solutions, the company’s researchers design special concretes that fulfill the construction industry’s increasingly demanding performance requirements. Cemex offers a special ready-mix concrete portfolio, consisted of such products as ultra-rapid hardening concrete, crack-resistant/low shrinkage concrete, self- consolidating concrete, architectural concrete, pervious concrete, antibacterial concrete and a number of others.

The company continuously works to improve the properties of ready-mix concrete that make it a key component of sustainable construction: durability, resistance to aggressive environments, light reflection, and capacity to store energy, among others. The company also constantly works to develop innovative solutions that advance the sustainability of structures made with ready-mix concrete. This way, the company’s customers can design sustainable buildings that can take advantage of the benefits of concrete in a wide range of applications. The company offers engineered concrete for harbors and bridges with a special design of high-performance concrete that combines durability and low maintenance with resistance to aggressive environments, and for industrial applications which consists of concrete with high acid resistance which is robust and durable for such uses as cooling towers. The company also offers concrete for building and housing used for structures, such as self-compacting concrete that improves the strength and durability of building structures, while reducing energy use and noise due to concrete vibration, and envelope concrete such as structural lightweight concrete or insulating concrete forms, which offer insulation solutions to improve energy efficiency in buildings, and concrete for building design that takes advantage of concrete’s capacity to store energy—its thermal mass—minimizing temperature fluctuations in a building over the course of the day, reducing the need for additional heating and cooling. The company also offers ready-mix concrete for water and wastewater management and for roads and pavements.

The types of ready-mix concrete the company offers its clients include, but are not limited to:

Standard Ready-Mix Concrete: Standard ready-mix concrete is the most common form of concrete. It is prepared for delivery at a concrete plant instead of mixed on the construction site.

Architectural and Decorative Concrete: This type of ready-mix concrete can provide a structural function, as well as an aesthetic or decorative finish. It can offer smooth or rough surfaces or textures, as well as a variety or range of colors.

Rapid-Setting Concrete: Designed to enhance early strength development, this type of ready-mix concrete allows fast formwork removal, accelerated construction sequencing, and rapid repair for such jobs as roads and airport runways. Typically used in low temperature (5-10°C) concreting during winter, this type of ready-mix concrete can also be used in buildings, railways, and precast applications. In addition to saving time, this type of ready-mix concrete technology offers improved durability and acid resistance.

Fiber-Reinforced Concrete: Ready-mix concrete designed with micro or macro fibers that can be used either for structural applications, where the fibers can potentially substitute for steel rebar reinforcement, or for reducing shrinkage, primarily early age shrinkage. Macro fibers can significantly increase the ductility of concrete, making it highly resistant to crack formation and propagation.

Fluid-Fill Concrete: Fluid mortar or ready-mix concrete simplifies the process of laying pipe and cable by surrounding the pipe or cable with a tightly packed shell that provides protection from the elements, prevents settling, and enables crews to work quickly.

Roller-Compacted Concrete: Compacted in place and cured, roller-compacted concrete is a zero-slump ready-mix concrete with the abrasion resistance to withstand high velocity water, making it the material of choice for spillways and other infrastructure subject to high flow conditions. It represents a competitive solution in terms of cost and durability when compared to asphalt.

Self-Consolidating Concrete: Self consolidating concrete has very high flow; therefore, it is self-leveling, eliminating the need for vibration. Due to the superplasticizers used, chemical admixtures that impart very high flow, self-consolidating concrete exhibits very high compaction as a result of its low air content. Consequently, self-consolidating concrete can have very high strengths, exceeding 50 megapascals.

Pervious Concrete: Because of its unique design mix, pervious concrete is a highly porous material that allows water, particularly rainwater, to filter through, reduces flooding and heat concentration by up to 4°C, and helps to prevent skidding on wet roads. This ready-mix concrete is ideally used in parking lots, footpaths, and swimming pool border applications.

Antibacterial Concrete: This type of ready-mix concrete helps to control bacteria growth and is used to help maintain clean environments in structures such as hospitals, laboratories, and farms.

Aggregates

The company is one of the world’s largest suppliers of aggregates: primarily the crushed stone, sand, and gravel, used in virtually all forms of construction. The company’s customers use its aggregates for a wide array of applications: as a key component in the construction and maintenance of highways, walkways, parking lots, airport runways, and railways; for drainage, water filtration, purification, and erosion control; as fill material; for sand traps on golf courses, beaches, playing field surfaces, horse racing tracks, and related applications; and to build bridges, homes, and schools.

Aggregates are obtained from land-based sources, such as sand and gravel pits and rock quarries or by dredging marine deposits.

Hard Rock Production. Rock quarries usually operate for at least 30 years and are developed in distinct benches or steps. A controlled explosion is normally used to release the rock from the working face. It is then transported by truck or conveyor to a crusher to go through a series of crushing and screening stages to produce a range of final sizes to suit customers’ needs. Dry stone is delivered by road, rail or water from the quarry.

Sand and Gravel Production. Sand and gravel quarries are much shallower than rock quarries and are usually worked and restored in progressive phases. Water can either be pumped out of the quarries allowing them to be worked dry or they can be operated as lakes with extraction below water. A conveyor draws the raw material into the processing plant where it is washed to remove unwanted clay and to separate sand. Sand separated during processing is dewatered and stockpiled. Gravel then passes over a series of screens that sieve the material into different sizes. Processing separates the gravel into stockpiles in a range of sizes for delivery.

Marine Aggregate Production. A significant proportion of the demand for aggregates is satisfied from rivers, lakes, and seabeds. Marine resources are increasingly important to the sustainable growth of the building materials industry. Marine aggregates also play an important role in replenishing beaches and protecting coastlines from erosion. At sea, satellite navigation is used to position a vessel precisely within its licensed dredging area. Vessels trail a pipe along the seabed and use powerful suction pumps to draw sand and gravel into the cargo hold. Dredged material is discharged at wharves, where it is processed, screened and washed for delivery.

Aggregates are an indispensable ingredient in ready-mix concrete, asphalt, and mortar. Accounting for 60% to 75% of ready-mix concrete’s volume, aggregates strongly influence concrete’s freshly mixed and hardened properties. Aggregates not only increase concrete’s strength, but also can make the mix more compact, enabling applications such as weatherproofing and heat retention. They can further contribute to concrete’s aesthetic qualities. For example, sand gives surface treatments their brightness.

The types of aggregates the company offers its clients include, but are not limited to:

Crushed Stone and Manufactured Sand: These products are obtained by mining rock and breaking it down to a preferred size. In the case of manufactured sand, the product is obtained by crushing rock to the selected shape or texture, ensuring product and project specifications are met. Sources of crushed stone can be igneous, sedimentary, or metamorphic.

Gravel: Gravel deposits are produced through a natural process of weathering and erosion. It can be used for roads, for concrete manufacturing, or for decorative purposes.

Sand: Sand occurs naturally and is composed of fine rock material and mineral particles. Its composition is variable depending on the source. It can be used for roads, concrete manufacturing, or sanitation.

Recycled Concrete: Recycled concrete is created by breaking, removing, and crushing existing concrete to a preferred size. It is commonly used as a base layer for other construction materials because it compacts to form a firm surface.

Urbanization Solutions

Urbanization Solutions is one of the company’s four core businesses, a portfolio of related businesses that complements the company’s value offering of products and solutions, looking to connect with the broader metropolis ecosystem, address urbanization challenges and provide means to all stakeholders in the construction value chain to enable sustainable urbanization by focusing on four key verticals:

Performance Materials

Performance materials are used to modify or enhance the properties and usability of building materials and construction systems. Performance materials include admixtures, mortars & special mortars (e.g., tiling adhesives, renders and plasters, concrete repair, and waterproofing) and asphalt. The following are examples of performance materials the company offers to its customers:

Admixtures ISOMILL 4000 Series grinding aids and cement enhancers provide significant carbon reduction, higher process efficiency and enhanced strength.

Admixtures ISOFLOW 6000 Series high-performance superplasticizer technology for ready-mixed concrete producers allows water and carbon reduction of up to 50% in concrete mix designs.

Cemex dry silo mortar provides an innovative and efficient solution to mortar delivery, particularly to larger sites. There is no need for mixing areas on site as all the material is contained in the silo. The guaranteed color, consistency and controlled workability are backed up by Cemex’s training and support. The dedicated Cemex dry silo team can support with silo placement and specification.

VIALOW is the company’s low temperature asphalt, that allows the re-opening of a jobsite more quickly after completion of road works, as the asphalt reaches appropriate trafficking temperatures faster than conventional hot mix asphalt. VIALOW reduced carbon asphalt includes the option to offset residual CO2 to provide a CarbonNeutral product, in accordance with The CarbonNeutral Protocol.

Industrialized Construction

The company manufactures finished building elements that are easy and safe to assemble and install on-site. Industrialized construction products range from precast components to complete structures, 2D panels, 3D modules, 3D structures, etc. The following are examples of industrialized construction products the company offers to its customers:

Precast elements for mobility and urban infrastructure: rail sleepers, box culverts, bridges, drainage basins, barriers and parking curbs.

High-end architectural concrete products with a range of styles for different building and urban landscaping projects: fully serviced façade panels, standard and architectural blocks, block paving and decorative paving solutions.

Social infrastructure solutions for rapid response: like the fully equipped COVID-19 hospital sections.

Circularity

The company provides services that improve the circularity of the construction value chain by focusing on three waste streams:

Municipal & Industrial Waste, which is waste generated by households, commerce, and industrial activities. An example is the company’s separation facilities in Mexico City that process around 25% of all the municipal waste the city generates, recovering from the waste stream what is recyclable and transforming most of the remaining waste to alternative fuels. Transforming municipal and industrial waste to alternative fuels replaces part of the fossil fuels used in the company’s cement kilns, increasing the sustainability attributes of the company’s products and reducing the carbon footprint in the company’s processes.

Construction, Demolition & Excavation Waste, which is waste generated specifically from the built environment. All debris, returned concrete, bricks, shingles, wood, excavation soil, etc., that can be reprocessed and reintegrated into the economy as raw materials. As an example, the Cemex Circularity Center in Gennevilliers, France, is a multiservice dock located in an industrial harbor in Paris offering a wide range of circular economy services to the construction industry. Gennevilliers receives a variety of materials, including construction waste, excavated material and inert soil, which it sorts, processes, and transforms into recycled aggregates or organic material used to restore quarries.

Alternative Raw Materials Waste, which is waste generated from other industries and by-products that can help Cemex preserve natural resources and reduce the company’s CO2 footprint. Materials, such as slag, fly ashes, pozzolans, calcined clays and other decarbonated raw materials can be used as substitutes for limestone and clinker in the company’s production processes.

Related Services

The company provides complementary services to offer integrated solutions through logistics and transportation, retail, pavement services and design and engineering, among others, that add value along the construction value chain. These services enable Cemex to provide value for the company’s customers by offering building solutions for their construction needs. The following are examples of related services the company offers to its customers:

Logistics services provide multi-faceted transportation solutions like the company’s New Line Transport business that serves the pneumatic tank, aggregate dump and flatbed markets promoting safety and providing a superior customer service through a centralized customer care dispatch center.

Retail services like ConstruramaSupply, an eCommerce platform for construction materials, such as steel, hardware, plumbing, finishes and electrical material that brings the Cemex product offer closer to the Construrama retail network.

Pavement services specialize in surface schemes from major highways and airfield surfacing to business parks, car parks, storage and materials handling depots where the company offers a comprehensive range of paving solutions to both private and public sector clients.

Design and engineering services like Construhub, a Building Information Modeling (‘BIM’) platform based on BIM methodology that reduces risks, improves quality and facilitates the delivery of projects on time and within budget for the company’s clients.

Services

The company continuously communicates and interacts with its customers to identify and implement effective ways to meet their toughest challenges. The company recognizes that customer loyalty happens by design, not by chance. To better serve the company’s customers, the company not only need to have a clear understanding of what they need, but also the means and passion to fulfill those needs.

In each market and locality in which the company operates, the company does its best to provide its customers with the most compelling integrated building solutions. For example, to solve infrastructure needs in major cities, the company not only provide ready-mix concrete, but for some projects the company also designs the project, define the best technical solution, offer different financial schemes and execute the project in collaboration with local builders. Similarly, the company works alongside its neighbors in small, less-affluent communities to help them solve their housing needs and pave their streets and sidewalks.

The following are examples of the different services offered to the company’s customers throughout its operations, which may vary from location to location:

Enhanced Loading Experience: This service offers the company’s customers flexibility and efficiency by applying technologies and solutions in the loading process in order to, among other results, minimize loading time and improve truck efficiency. These technologies and solutions include ATM-like Bulk-Cement, fast lanes, real time loading status, License Plate Recognition, and Radio-Frequency Identification.

Customer-oriented Educational and Training Services: Webinars continue to be an effective channel to engage with existing and potential customers. In 2022, Cemex hosted over 160 webinars on several topics, including CEMEX Go trainings about new functionalities, new product releases, Vertua and sustainability.

Online Services: During 2022, the company continued working on its customer-centricity and global business strategy, enhancing the company’s customers’ experience while using CEMEX Go. The company has successfully deployed the CEMEX Go digital platform by making it available in 21 countries and having 50% of the company’s total recurring cement, ready-mix concrete, and aggregates customers conducting more than half of their purchases, or more than 60% of the company’s global sales, through the platform.

The company released the Online Connection, an online application enabled for cement and ready-mix, allowing the company’s customers to receive an immediate response for a delivery request according to resources and capacity available for dispatch, allowing orders to be confirmed automatically and in real time since 2021. In 2022, the company connected the Ready-Mix Go application to the company’s online capabilities, so that users can place, view, schedule, confirm, and manage orders, as well as to track deliveries, configure notifications, and view order history from mobile and web devices. Moreover, the company has been encouraging the digitalization of internal and customer processes to minimize the use of paper. Today, around 74% of the company’s invoices are delivered in a fully digital manner, putting the company on track to achieving its global paperless goal.

Service Centers: The company’s Service Centers globally play a key role in providing a superior customer experience to the company’s customers. As part of the company’s Service Delivery Model Transformation, the company is evolving its Contact Centers to become Next Generation Service Centers, enabled by quality processes and technology. The company’s customers will live an omnichannel experience for all important touchpoints, from inquiring about product and services to placing and following up on orders and providing feedback for improvement.

Technical Support: The company intends to provide its customers with top-level technical assistance through the company’s equipment and its highly professional, well-trained technical services staff. The company strives to provide value above and beyond fulfilling the company’s customers’ need for cement, aggregates, ready-mix concrete, and related products such as mortar.

Raw Materials Resources and Reserves

As of December 31, 2022, the company’s total cement raw materials and aggregates resources and reserves were located in 409 sites, comprising a property surface of approximately 96,701 hectares. Of these sites, 211 are located on land owned by Cemex, 94 are on land leased by Cemex, and 104 are on land owned in part and leased in part.

As of December 31, 2022, the company had 314 cement raw materials and aggregates properties in the production stage, 60 properties in the development stage, and 35 properties in the exploration stage.

As of December 31, 2022, the company operated 144 cement raw materials quarries across its global operations, serving the company’s facilities dedicated to cement production, which are commonly located at or near the cement plant facilities. Annualized production of cement raw materials totaled 67.4 million tons for 2022. As of December 31, 2022, the company operated substantially all of its cement raw materials quarries, some of which are jointly-operated with third parties.

As of December 31, 2022, the company operated approximately 265 aggregates quarries across its global operations, mostly dedicated to serving the company’s ready-mix concrete and aggregates businesses. Annualized production of aggregates totaled 117.7 million tons for 2022. As of December 31, 2022, the company operated substantially all of the company’s aggregates quarries, some of which are jointly-operated with third parties.

Strategic Priorities

The company’s strategy is to create value by building and managing a global portfolio of integrated cement, ready-mix concrete, aggregates and Urbanization Solutions businesses. The company’s strategic priorities are health and safety, customer centricity, and innovation.

User Base

Cement is the primary building material in the industrial and residential construction sectors of the majority of markets in which the company operates. The primary end-users of cement in each region in which the company operates vary but usually include, among others, wholesalers, ready-mix concrete producers, industrial customers and contractors in bulk. Additionally, sales of bagged cement to individuals for self-construction and other basic needs have traditionally been a significant component of the retail sector. The end-users of ready-mix concrete generally include homebuilders, commercial and industrial building contractors and road builders. Major end-users of aggregates include ready-mix concrete producers, mortar producers, general building contractors and those engaged in road building activity, asphalt producers and concrete product producers. The company’s Urbanization Solutions have a wide user base, which includes, but is not limited to, contractors, builders and developers in general, ready-mix concrete, cement, mortars and special mortars producers, governments, paving companies, architects and civil engineers.

Operations in Mexico

As of December 31, 2022, Cemex was both a holding company for some of the company’s operating companies in Mexico and was involved in the production, marketing, sale and distribution of cement, ready-mix concrete, aggregates and other construction materials and urbanization solutions in Mexico, as well as a construction materials and related products service provider. Cemex, indirectly, is also the holding company of all the company’s international operations.

The company’s Tepeaca cement plant in Puebla, Mexico, as of December 31, 2022, had a production capacity of 3.1 million tons of cement per year. In December 2014, the company announced the restart of expansion project of the Tepeaca cement plant, consisting of the construction of a new kiln that is already in operation and a mill. Its total production capacity is expected to reach 4.6 million tons of cement per year by 2023 based on mill capacity. Additionally, the company invested in the same region to increase the company’s cement production capacity by 0.5 million tons of cement through a debottlenecking project for the company’s operations in Huichapan. This project was completed during the first quarter of 2019. In May 2021, in order to generate enough supply to meet the increasing demand in the U.S. market and strengthen the company’s position in the region, the company resumed the company’s operations in the company’s CPN cement plant in Sonora, which has a production capacity of 1.9 million tons of cement per year.

In March 2022, following the successful restart of the company’s operations in the company’s CPN cement plant in Sonora, the company announced the reactivation of the company’s second CPN kiln in the Sonora plant to continue leveraging Cemex’s regional trading network to meet growing cement demand throughout the western United States. This project was completed during the fourth quarter of 2022 serving customers across Arizona, California and Nevada.

In 2001, the company launched the Construrama program, a registered brand name for construction material stores. Through this program, the company offers to an exclusive group of the company’s Mexican distributors the opportunity to sell a variety of products under the Construrama brand name, a concept that includes the standardization of stores, image, marketing, products and services. As of December 31, 2022, 1,123 independent concessionaries with 2,389 stores were integrated into the Construrama program, with nationwide coverage.

The company owns the registered trademarks for the company’s brands in Mexico, such as ‘Tolteca,’ ‘Monterrey,’ ‘Maya,’ ‘Anahuac,’ ‘Campana,’ ‘Gallo,’ ‘Centenario,’ as well as certain sub-brands, such as ‘Extra,’ ‘Impercem’ and ‘Optimo’ for gray cements and mortar and, additionally, recently launched ‘Multiplast’ for coatings. The company also has trademark registrations for its special concrete’s brands, such as ‘Promptis,’ ‘Resilia,’ ‘Pervia,’ ‘Insularis’ and ‘Evolution.’ In Mexico, the company introduced ‘Vertua’ as a value cement and concrete brand. ‘Vertua’ is Cemex’s global brand for low carbon footprint products. In addition, the company owns the registered trademark for the ‘Construrama’ brand name for construction material stores and for the company’s new digital solution the company has trademark registrations for ‘CEMEX Go’ and ‘Olivia’.

Urbanization Solutions. In Mexico, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Related Services and Circularity verticals were the main contributors. These businesses are located across Mexico.

Operating Network in Mexico

During 2022, the company operated 15 cement plants and 108 cement distribution centers (including eight marine terminals) located throughout Mexico.

The company operates cement plants on the Gulf of Mexico and Pacific coasts of Mexico, most of the time allowing the company to take advantage of attractive transportation costs to export to the United States and the SCA&C region, when possible.

Products and Distribution Channels

Cement: For the year ended December 31, 2022, the company’s cement operations represented 57% of revenues from the company’s operations in Mexico.

Ready-Mix Concrete: For the year ended December 31, 2022, the company’s ready-mix concrete operations represented 20% of revenues from the company’s operations in Mexico. The company’s ready-mix concrete operations in Mexico purchase substantially all their cement requirements from the company’s cement operations in Mexico. Ready-mix concrete is sold through the company’s own internal sales force and facilities network.

Aggregates: For the year ended December 31, 2022, the company’s aggregates operations represented 6% of revenues from the company’s operations in Mexico.

Urbanization Solutions and Others: For the year ended December 31, 2022, the company’s Urbanization Solutions and other businesses operations represented 17% of revenues from the company’s operations in Mexico.

Exports: The company’s operations in Mexico export a portion of their cement production, mainly in the form of cement and to a lesser extent in the form of clinker. Exports of cement by the company’s operations in Mexico represented 14% of the company’s total cement sales volume in Mexico for 2022. In 2022, 92% of the company’s cement exports from Mexico were to the United States and 8% were to the company’s Rest of SCA&C segment.

The cement and clinker exports by the company’s operations in Mexico to the United States are mostly marketed through the company’s trading network subsidiaries. The company’s cement and clinker transactions between Cemex and its subsidiaries, are conducted on an arm’s-length basis.

Description of Properties, Plants and Equipment: As of December 31, 2022, the company had 15 wholly-owned cement plants (all of them active) with a cement installed capacity of 27.3 million tons per year and proportional interests through associates in three other cement plants located throughout Mexico. The company has exclusive access to limestone quarries and clay reserves near each of the company’s plant sites in Mexico. The company estimates that, as of December 31, 2022, the limestone and clay permitted proven and probable reserves of the company’s operations in Mexico had an average remaining life of 127 and 107 years, respectively, assuming 2018 to 2022 average annual production levels. As of December 31, 2022, all the company’s producing plants in Mexico utilized the dry process.

As of December 31, 2022, the company had a network of 100 land distribution centers in Mexico, which are supplied through a fleet of the company’s own trucks and rail cars, as well as leased trucks and rail facilities, and operated eight marine terminals. In addition, the company had 259 ready-mix concrete plants (31 were temporarily inactive) throughout 75 cities in Mexico, more than 2,200 ready-mix concrete delivery trucks and 13 aggregates quarries (one was temporarily inactive).

Operations in the United States

As of December 31, 2022, the company’s operations in the United States represented 16% of the company’s total installed cement capacity and 48% of the company’s total assets. As of December 31, 2022, Cemex, Inc. was the main holding company of the company’s operating subsidiaries in the United States.

On September 23, 2013, the company and Concrete Supply Company, a leading producer of ready-mix concrete throughout North and South Carolina, entered into a joint venture agreement and formed a joint venture company named Concrete Supply Co. LLC, in which Concrete Supply Holdings Co. holds a majority ownership stake in and acts as the managing member. This joint venture is a leading concrete supplier in North and South Carolina with strong local management.

Competition: As of December 31, 2022, the company’s principal competitors in the United States were Holcim, Buzzi-Unicem, HeidelbergCement AG (‘Heidelberg’) and CRH.

Urbanization Solutions: In the United States, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Related Services and Industrialized Construction verticals were the main contributors. These businesses are located across the Sun Belt region of the United States.

Operating Network in the United States

Products and Distribution Channels

Cement: For the year ended December 31, 2022, the company’s cement operations represented 30% of revenues from the company’s operations in the United States. In the United States, the company delivers a substantial portion of cement by rail, which occasionally goes directly to customers. Otherwise, shipments go to distribution terminals where customers pick up the product by truck or the company delivers the product by truck. The majority of the company’s cement sales in the United States are made directly to users of gray portland and masonry cements, generally within a radius of approximately 200 miles of each plant.

Ready-Mix Concrete: For the year ended December 31, 2022, the company’s ready-mix concrete operations represented 42% of revenues from the company’s operations in the United States. The company’s ready-mix concrete operations in the United States purchase most of their cement aggregates requirements from the company’s cement operations in the United States. The company’s ready-mix concrete products are mainly sold to residential, commercial and public contractors and to building companies.

Aggregates: For the year ended December 31, 2022, the company’s aggregates operations represented 18% of revenues from the company’s operations in the United States. The company estimates that, as of December 31, 2022, the hard rock quarries and sand and gravel pits permitted proven and probable reserves of the company’s operations in the United States had an average remaining life of 26 and 20 years, respectively, assuming 2018 to 2022 average annual aggregates production levels. The company’s aggregates are consumed mainly by the company’s internal operations and by the company’s trade customers in the ready-mix, concrete products and asphalt industries.

Urbanization Solutions and Others: For the year ended December 31, 2022, the company’s Urbanization Solutions and other businesses operations represented 10% of revenues from the company’s operations in the United States.

Description of Properties, Plants and Equipment: As of December 31, 2022, the company operated a geographically diverse base of 10 cement manufacturing plants in the United States (two were temporarily inactive) located in Alabama, California, Colorado, Florida, Georgia, Pennsylvania, Tennessee and Texas; and had a total installed cement capacity of 14.1 million tons per year. The company estimates that, as of December 31, 2022, the limestone permitted proven and probable reserves of the company’s operations in the United States had an average remaining life of 49 years, assuming 2018 to 2022 average annual production levels. As of December 31, 2022, the company operated a distribution network of 33 cement terminals (four of which the company distributed fly ash through) and 11 deep-water import terminals. All of the company’s 10 cement production facilities in 2022 were wholly-owned by Cemex, Inc. As of December 31, 2022, Cemex, Inc. had 327 ready-mix concrete plants (36 were temporarily inactive) located in Alabama, Arizona, California, Florida, Georgia, Louisiana, Nevada, Tennessee, Texas and Virginia and operated a total of 55 aggregates quarries (14 were temporarily inactive) in Arizona, California, Florida, Georgia, Nevada, South Carolina and Texas. As of December 31, 2022, the company had 16 concrete block facilities.

In the United States, the company has continued to take a number of actions to streamline the company’s operations and improve productivity, including temporary capacity adjustments and rationalizations in some of the company’s cement plants, and shutdowns of ready-mix concrete and block plants and aggregates quarries. As of December 31, 2022, the company was utilizing approximately 89% of the company’s ready-mix concrete plants, 75% of the company’s block manufacturing plants and 73% of the company’s aggregates quarries in the United States.

EMEAA

For the year ended December 31, 2022, the company’s business in the EMEAA region , which includes the company’s operations in the EMEAA region and the Rest of EMEAA segment, represented 27% of the company’s revenues. As of December 31, 2022, the company’s operations in the EMEAA region represented 39% of the company’s total installed capacity and 23% of the company’s total assets.

Operations in the United Kingdom

As of December 31, 2022, the company was a leading provider of building materials in the United Kingdom with vertically integrated cement, ready-mix concrete, aggregates and asphalt operations; and the company was also an important provider of concrete and precast materials solutions, such as concrete blocks, concrete block paving, flooring systems and sleepers for rail infrastructure.

Competition: As of December 31, 2022, the company’s primary competitors in the United Kingdom were Tarmac (owned by CRH after divestments by Lafarge and Holcim during their merger), Hanson (a subsidiary of Heidelberg), Aggregate Industries (a subsidiary of Holcim) and Breedon, which acquired Hope Construction Materials (owned by Mittal Investments). In addition, during 2022 an estimated 3.4 million tons of cement were imported to the United Kingdom by various players including CRH, Holcim, Heidelberg and other independents, with products that compete with the company increasingly arriving from over-capacity markets, including Ireland, Spain and Greece.

Urbanization Solutions: In the United Kingdom, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted primarily of asphalt, concrete block, mortars and admixtures, among others. These businesses are located across the United Kingdom.

Operating Network in the United Kingdom

Products and Distribution Channels

Cement: For the year ended December 31, 2022, the company’s cement operations represented 25% of revenues from the company’s operations in the United Kingdom. About 83% of the company’s United Kingdom cement sales were of bulk cement, with the remaining 17% in bags. The company’s bulk cement is mainly sold to ready-mix concrete, concrete block and pre-cast product customers and contractors. The company’s bagged cement is primarily sold to national builders’ merchants.

Ready-Mix Concrete: For the year ended December 31, 2022, the company’s ready-mix concrete operations represented 26% of revenues from the company’s operations in the United Kingdom. Special products, including self-compacting concrete, fiber-reinforced concrete, high strength concrete, flooring concrete and filling concrete, represented 27% of the company’s 2022 United Kingdom sales volume. In 2022, the company’s ready-mix concrete operations in the United Kingdom purchased 96% of its cement requirements from the company’s cement operations in the United Kingdom and 82% of its aggregates requirements from the company’s aggregates operations in the United Kingdom. The company’s ready-mix concrete products are mainly sold to public, commercial and residential contractors.

Aggregates: For the year ended December 31, 2022, the company’s aggregates operations represented 30% of revenues from the company’s operations in the United Kingdom. In 2022, the company’s United Kingdom aggregates sales were divided as follows: 60% were sand and gravel, 39% were limestone, and 1% was hardstone. In 2022, 35% of the company’s aggregates volumes were obtained from marine sources along the United Kingdom’s coast. In 2022, 31% of the company’s United Kingdom aggregates production was consumed by the company’s own ready-mix concrete operations, as well as the company’s asphalt, concrete block and precast operations. The company also sells aggregates to major contractors to build roads and other infrastructure projects.

Urbanization Solutions and Others: For the year ended December 31, 2022, the company’s Urbanization Solutions and other businesses operations represented 19% of revenues from the company’s operations in the United Kingdom.

Description of Properties, Plants and Equipment: As of December 31, 2022, the company had two cement plants (one was temporarily inactive) and one clinker grinding facility in the United Kingdom. Assets in operation at year-end 2022 represent an installed cement capacity of 3.6 million tons per year, the same level as 2021. The company estimate that, as of December 31, 2022, the limestone and clay permitted proven and probable reserves of the company’s operations in the United Kingdom had an average remaining life of 46 and 38 years, respectively, assuming 2018 to 2022 average annual production levels. As of December 31, 2022, the company also owned three cement import terminals and operated 125 ready-mix concrete plants (25 were temporarily inactive), 32 aggregates quarries (11 were temporarily inactive), 15 marine licenses (all of them active), 16 distribution centers, and 13 marine terminals in the United Kingdom. In addition, the company had operating units dedicated to the asphalt, concrete blocks, concrete block paving, sleepers and flooring businesses in the United Kingdom.

In order to have access to blended cements, which are more sustainable based on their reduced clinker factor and use of by-products from other industries, the company’s grinding and blending facility at the Port of Tilbury, located on the Thames River east of London has an annual grinding capacity of 0.9 million tons, which allows the company to have access to blended cements.

Operations in France

As of December 31, 2022, the company was a leading ready-mix concrete producer and a leading aggregates producer in France. For the year ended December 31, 2022, the company’s ready-mix concrete operations represented 64%, aggregates represented 34% and Urbanization Solutions represented 2%, respectively, of revenues from the company’s operations in France . The company distributes most of the company’s materials by road and a significant quantity by waterways, seeking to maximize the use of this efficient and sustainable alternative. For the year ended December 31, 2022, the company’s operations in France represented 4% of the company’s revenues . As of December 31, 2022, the company’s operations in France represented 4% of the company’s total assets, in Dollar terms.

Competition: As of December 31, 2022, the company’s main competitors in the ready-mix concrete market in France included Holcim, Heidelberg, CRH and Vicat SA; and the company’s main competitors in the aggregates market in France included Holcim, Heidelberg, Colas (Bouygues) and Eurovia (Vinci).

Urbanization Solutions: In France, for the year ended December 31, 2022, the company’s Urbanization Solutions business consisted of admixtures. This business is located across France.

Operating Network in France

Description of Properties, Plants and Equipment: As of December 31, 2022, the company operated 195 ready-mix concrete plants in France (five were temporarily inactive), two marine terminals located in Le Havre, on the northern coast of France, 18 land distribution centers, 46 aggregates quarries (five were temporarily inactive) and 11 river ports.

Operations in Germany

As of December 31, 2022, the company was a leading provider of building materials in Germany, with vertically integrated cement, ready-mix concrete and aggregates businesses.

Competition: As of December 31, 2022, the company’s primary competitors in the cement market in Germany were Heidelberg, Dyckerhoff (a subsidiary of Buzzi-Unicem), Holcim, CRH and Schwenk, a local German competitor.

Urbanization Solutions: In Germany, for the year ended December 31, 2022, the company’s Urbanization Solutions business consisted of admixtures. This business is located mainly in the eastern and western regions of Germany.

Operating Network in Germany

Description of Properties, Plants and Equipment: As of December 31, 2022, the company operated one cement plant and one cement grinding mill in Germany and the company’s installed cement capacity was 3.1 million tons per year. The company estimates that, as of December 31, 2022, the limestone permitted proven and probable reserves of the company’s operations in Germany had an average remaining life up to 33 years, assuming 2018 to 2022 average annual production levels. In July 2022, Cemex completed the acquisition of a 53% stake in ProStein, a German aggregates company. The company’s aggregate sales in Germany are expected to double as a result of the acquisition. ProStein’s assets include six active hardstone plants. As of December 31, 2022, the company’s operations in Germany also included 57 ready-mix concrete plants (all of them active), 28 aggregates quarries (12 were temporarily inactive) and three land distribution centers.

Operations in Poland

As of December 31, 2022, the company was a leading provider of building materials in Poland, serving the cement, ready-mix concrete and aggregates markets. As of December 31, 2022, the company operated two cement plants (all of them active) and one grinding mill with an installed cement capacity of 3.8 million tons per year. As of December 31, 2022, the company also operated 44 ready-mix concrete plants (two were temporarily inactive), six aggregates quarries (all of them active), two distribution centers and two marine terminals in Poland. For the year ended December 31, 2022, cement represented 58%, ready-mix concrete represented 33%, aggregates represented 8% and Urbanization Solutions and the company’s other businesses represented 1%, respectively of revenues from the company’s operations in Poland .

Competition: As of December 31, 2022, the company’s primary competitors in the cement, ready-mix concrete and aggregates markets in Poland were Heidelberg, Holcim, CRH, Dyckerhoff and Miebach.

Urbanization Solutions: In Poland, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted primarily of admixtures and mortars. These businesses are located across Poland.

Operations in Spain

Urbanization Solutions: In Spain, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted primarily of mortars and admixtures. These businesses are located across Spain.

Products and Distribution Channels

Cement: The company offers various types of cement in Spain, targeting specific products to specific markets and users. In 2022, 16% of the domestic sales volume of the company’s main operating subsidiary in Spain consisted of bagged cement, and the remainder of its domestic sales volume consisted of bulk cement, primarily to ready-mix concrete operators, including sales to the company’s other operations in Spain, as well as industrial customers that use cement in their production processes and construction companies.

Ready-Mix Concrete: The company’s ready-mix concrete operations in Spain in 2022 purchased 94% of their cement requirements from the company’s cement operations in Spain and 63% of their aggregates requirements from the company’s aggregates operations in Spain.

Aggregates: For the year ended December 31, 2022, the company’s aggregates operations represented 8% of revenues from the company’s operations in Spain.

Urbanization Solutions and Others: For the year ended December 31, 2022, the company’s Urbanization Solutions and other businesses operations represented 5% of revenues from the company’s operations in Spain.

Exports: Exports of cement and clinker by the company’s operations in Spain, which represented 29% of the company’s total cement sales volume in Spain for 2022. Of the company’s total exports from Spain in 2022, 58% consisted of gray portland cement and 42% of clinker.

Description of Properties, Plants and Equipment: As of December 31, 2022, the company’s operations in Spain included six cement plants (two were temporarily inactive) located in Spain with an annual installed cement capacity of 7.7 million tons. As of December 31, 2022, the company also had 30 operative distribution centers, including 19 land and 11 marine terminals, 51 ready-mix concrete plants (15 were temporarily inactive), 22 aggregates quarries (eight were temporarily inactive), eight mortar plants and one admixture plant. The company estimates that, as of December 31, 2022, the limestone and clay permitted proven and probable reserves of the company’s operations in Spain had an average remaining life of 56 and 36 years, respectively, assuming 2018 to 2022 average annual production levels.

Operations in the Philippines

As of December 31, 2022, on a consolidated basis, Cemex España indirectly held 100% of Cemex Asian South East Corporation (‘CASEC’), which in turn owned 77.9% of the outstanding share capital of CHP. As of December 31, 2022, CHP directly and indirectly owned 100% of the company’s two principal operating subsidiaries in the Philippines, Solid Cement Corporation (‘Solid Cement’) and APO Cement Corporation (‘APO’).

As of December 31, 2022, CHP was investing in a new 1.5 million ton integrated cement production line at the Solid Cement Plant located in Luzon, Philippines (the ‘Solid Cement Plant’) with an estimated total investment of $371.8 million. Upon completion, this new line should nearly double the capacity of the Solid Cement Plant and would represent a 26% increase in the company’s cement capacity in the Philippines. In October 2018, the company entered into principal project agreements with CBMI Construction Co., Ltd (‘CBMI’), an affiliate of Sinoma International Engineering Co., Ltd., for the procurement, construction and installation of the new line. On April 25, 2019, Solid Cement held its ceremonial groundbreaking for the new line. Various work was already ongoing, including the mobilization of equipment and site development. The new rotary kiln was lifted into position in January 2021. On December 7, 2021, Solid Cement served a notice of termination with respect to the construction contract with CBMI, which covered the construction and installation of Solid Cement’s new line. Solid Cement’s notice of termination, which applies to one of the principal project agreements with CBMI, was issued due to the delay in construction and installation work. Solid Cement took measures to address contingencies which have arisen as a result of this termination, including engaging replacement contractors for the project. During the first quarter of 2022, Solid Cement entered into contracts with Atlantic Gulf and Pacific Company of Manila, Inc. and Betonbau Phil., Inc. to continue the construction and installation of Solid Cement’s new line. As of December 31, 2022, among the project components completed were the slip form works for the raw meal silo, clinker silos, and cement silos of the new line. CHP estimates that the construction of the new line should be completed by March 2024 and the start of its operations could commence in April 2024.

Competition: As of December 31, 2022, the company’s major competitors in the Philippine cement market were Holcim, Republic, Eagle, Northern, Goodfound, Taiheiyo, and Mabuhay.

Description of Properties, Plants and Equipment: As of December 31, 2022, the company’s operations in the Philippines included two cement plants (all of them active) with an annual installed cement capacity of 5.7 million tons, exclusive access to four quarries to supply raw materials to the company’s cement plants, one aggregate quarry (which was temporarily inactive), 19 land distribution centers and six marine distribution terminals. The company estimates that, as of December 31, 2022, the limestone and clay permitted proven and probable reserves accessed by the company’s operations in the Philippines had an average remaining life of 193 years for Solid Cement and 36 years for APO, assuming 2018 to 2022 average annual production levels.

Cement: For the year ended December 31, 2022, the company’s cement operations represented 99% of revenues from the company’s operations in the Philippines.

Urbanization Solutions and Others: For the year ended December 31, 2022, the company’s Urbanization Solutions and other businesses operations represented 1% of revenues from the company’s operations in the Philippines.

Urbanization Solutions: In the Philippines, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted of admixtures. This business is located across the Philippines.

Operations in Israel

The company is a leading producer and supplier of raw materials for the construction industry in Israel. In addition to ready-mix concrete and aggregates, the company produces a diverse range of building materials and infrastructure products in Israel. As of December 31, 2022, the company operated 56 ready-mix concrete plants (all of them active), seven aggregates quarries (all of them active), which includes one sand pit, two concrete products plants and one admixtures plants.

Urbanization Solutions: In Israel, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted primarily of other concrete products and admixtures, among others. These businesses are located across Israel.

Rest of EMEAA

As of December 31, 2022, the company’s operations in the Rest of EMEAA segment consisted primarily of the company’s operations in the Czech Republic, Croatia, Egypt and the UAE.

Operations in the Czech Republic

As of December 31, 2022, the company was a leading producer of ready-mix concrete and aggregates in the Czech Republic. The company also distributes cement in the Czech Republic. As of December 31, 2022, the company operated one cement plant and one grinding mill with annual cement installed capacity of 1.7 million tons, one cement terminal and one admixtures plant in the Czech Republic. As of December 31, 2022, the company also operated 71 ready-mix concrete plants (three of which were temporarily inactive), which include three mobile equipment producing concrete and 14 aggregates quarries in the Czech Republic (one was inactive).

Competition: As of December 31, 2022, the company’s main competitors in the cement, ready-mix concrete and aggregates markets in the Czech Republic were Heidelberg, Buzzi-Unicem, Holcim, Strabag and Skanska.

Urbanization Solutions: In the Czech Republic, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted of admixtures. This business is located in the northeastern region of the Czech Republic.

Operations in Croatia

The company was the largest cement producer in Croatia based on installed capacity as of December 31, 2022. As of December 31, 2022, the company had two cement plants (all of them active) in Croatia with an annual cement installed capacity of 2.2 million tons. In 2022, one cement plant was permanently shut down. As of December 31, 2022, the company also operated 11 land distribution centers, two marine cement terminals in Croatia, Bosnia and Herzegovina, Serbia and Montenegro, seven ready-mix concrete facilities in Croatia and Bosnia and Herzegovina (all of them active), and one recycling yard in Croatia.

Competition: As of December 31, 2022, the company’s primary competitors in the cement market in Croatia were Nexe and Holcim.

Urbanization Solutions: In Croatia, during the 2022 calendar year, the company’s Urbanization Solutions business for most of the year consisted of pavement services; however, as of December 31, 2022, such services were no longer being provided.

Operations in Egypt

As of December 31, 2022, the company operated one cement plant in Egypt with an annual installed cement capacity of 5.4 million tons. This plant is located approximately 280 miles south of Cairo and serves the upper Nile region of Egypt, as well as Cairo and the Delta region, Egypt’s main cement market. The company estimates that, as of December 31, 2022, the limestone and clay permitted proven and probable reserves of the company’s operations in Egypt had an average remaining life of 22 and 22 years, respectively, assuming 2018 to 2022 average annual production levels. In addition, as of December 31, 2022, the company had six ready-mix concrete plants (one was inactive) and three land distribution centers in Egypt, and one admixtures plant.

Urbanization Solutions: In Egypt, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted primarily of admixtures and pavement services. These businesses are located across Egypt.

Operations in the UAE

As of December 31, 2022, Cemex España held a 49% equity interest (and a 100% economic interest) in all of the company’s main UAE companies: Cemex Topmix LLC and Cemex Supermix LLC, ready-mix concrete manufacturing companies, and Cemex Falcon LLC, which specializes in the production of cement and slag. The company owns a 100% economic interest in all three companies. As of December 31, 2022, the company owned 12 ready-mix concrete plants (two were temporarily inactive), three pugmill plants, one admixture plant and one cement and slag grinding facility in the UAE with an annual installed cement capacity of 1.2 million tons, serving the markets of Dubai and Abu Dhabi, as well as neighboring countries, such as Oman.

Urbanization Solutions: In the UAE, for the year ended December 31, 2023, in terms of relevant revenues, the company’s Urbanization Solutions business consisted of admixtures. This business is located across the UAE.

SCA&C

For the year ended December 31, 2022, the company’s business in the SCA&C region, which included the company’s operations in Colombia, Panama, Caribbean TCL, the Dominican Republic and the Rest of SCA&C segment, represented 9% of the company’s revenues.

CLH is the main holding company for Cemex’s operations in Colombia, Panama, Guatemala and Nicaragua.

On August 31, 2022, through certain of the company’s subsidiaries, the company concluded the sale of the company’s operations in Costa Rica and El Salvador with affiliates of Cementos Progreso Holdings, S.L. related to the company’s aggregate controlling interest.

Operations in Colombia

As of December 31, 2022, Cemex Colombia was the second-largest cement producer in Colombia, based on installed cement capacity of 4.1 million tons per year as of December 31, 2022.

Cemex Colombia has a significant market share in the cement and ready-mix concrete market in the ‘Urban Triangle’ of Colombia comprising the cities of Bogotá, Medellín and Cali. Cemex Colombia’s Ibague plant, which is strategically located in the Urban Triangle, is Cemex Colombia’s largest plant as of December 31, 2022. Cemex Colombia, through its Cúcuta plant and Clemencia grinding facility, is also an active participant in Colombia’s northeastern and coastal markets.

Competition: As of December 31, 2022, the company’s two largest competitors in Colombia were Cementos Argos, which has established a leading position in the Colombian Caribbean coast, Antioquia and Southwest region markets, and Holcim in the central region of the country.

Urbanization Solutions: In Colombia, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted primarily of energy, multiproducts and admixtures, among others. These businesses are located across Colombia.

Operating Network in Colombia

Products and Distribution Channels

Cement: For the year ended December 31, 2022, the company’s cement operations represented 53% of revenues from the company’s operations in Colombia.

Ready-Mix Concrete. For the year ended December 31, 2022, the company’s ready-mix concrete operations represented 25% of revenues from the company’s operations in Colombia.

Aggregates. For the year ended December 31, 2022, the company’s aggregates operations represented 7% of revenues from the company’s operations in Colombia.

Urbanization Solutions and Others: For the year ended December 31, 2022, the company’s Urbanization Solutions and other businesses operations represented 15% of revenues from the company’s operations in Colombia.

Description of Properties, Plants and Equipment. As of December 31, 2022, Cemex Colombia owned two operating cement plants and two cement grinding mills, having a total installed cement grinding capacity of 4.1 million tons. In 2022, the company replaced 28.6% of its total fuel consumed in Cemex Colombia with alternative fuels, and the company had an internal electricity generating capacity of approximately 37 MW as of December 31, 2022. The company estimates that, as of December 31, 2022, the limestone and clay permitted proven and probable reserves of the company’s operations in Colombia had an average remaining life of 60 and 261 years, respectively, assuming 2018 to 2022 average annual production levels. As of December 31, 2022, Cemex Colombia also operated 11 distribution centers, one mortar plant, one admixtures plant, 32 ready-mix concrete plants (all of them active), nine aggregates operations (eight were temporarily inactive) and one adhesives plant.

Cemex Colombia continues its progress on the Maceo Plant Project, with 90% and 26% of the plant and road portions completed as of the year ended December 31, 2022, respectively. The company expects the Maceo Plant Project to enter into commission in the second half of 2023.

Operations in Panama

For the year ended December 31, 2022, the company’s operations in Panama represented 1% of the company’s revenues. For the year ended December 31, 2022, cement represented 71%, ready-mix concrete represented 16%, aggregates represented 4%, Urbanization Solutions and other businesses represented 9%, respectively, of the company’s revenues from its operations in Panama.

Description of Properties, Plants and Equipment. As of December 31, 2022, the company’s operations in Panama through Cemento Bayano operated one cement plant in Panama, with an installed cement capacity of 1.2 million tons and clinker capacity of 1.6 million tons. As of December 31, 2022, Cemento Bayano also operated six ready-mix concrete plants (one was temporarily inactive), one admixtures plant and three distribution centers, including one location at the cement plant.

Urbanization Solutions: In Panama, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted primarily of admixtures, among others. These businesses are located across Panama.

Operations in Caribbean TCL

As of December 31, 2022, Caribbean TCL was one of the leading producers and marketers of cement and ready-mix concrete products in the Caribbean’s construction sector, with operations strategically located in Jamaica, Trinidad and Tobago, Guyana and Barbados.

As of December 31, 2022, the company’s focus with respect to Caribbean TCL will continue on attempting to maximize further synergies from TCL’s integration with the company. As of December 31, 2022, the company intended to improve the productivity and capacity of the company’s Caribbean TCL’s cement plants, continue the vertical integration of Caribbean TCL’s business, invest in developing its employees and offer strong value products to the company’s customers in the region and elsewhere.

Operations in Trinidad & Tobago

Description of Properties, Plants and Equipment. As of December 31, 2022, TCL operated 1 cement plant in Trinidad & Tobago, with a total annual cement installed capacity of 1.0 million tons. As of December 31, 2022, TCL had 2 operational ready-mix concrete plants (one was temporarily inactive), three aggregates quarries (all of them active), four land distribution centers and one marine terminal.

Urbanization Solutions. In Trinidad & Tobago, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted primarily of admixtures.

TCL Operations in Jamaica

As of December 31, 2022, the company held an indirect controlling position mainly through TCL in CCCL.

Description of Properties, Plants and Equipment. As of December 31, 2022, CCCL operated one cement plant in Jamaica, with a total cement installed capacity of 1.5 million tons. As of December 31, 2022, CCCL had four land distribution centers, including one location at the cement plant, and one marine terminal.

Operations in Barbados

As of December 31, 2022, through TCL, the company held an indirect controlling position in Arawak Cement Company Limited (‘Arawak’) in Barbados.

Description of Properties, Plants and Equipment. As of December 31, 2022, Arawak operated one cement plant in Barbados, with a total cement installed capacity of 0.4 million tons. As of that date, Arawak had one ready-mix concrete plant (temporarily inactive), one land distribution center and one marine terminal.

Urbanization Solutions. In Barbados, for the year ended December 31, 2022, the company did not have any Urbanization Solutions business.

Operations in the Dominican Republic

As of December 31, 2022, Cemex Dominicana, S.A.’s (‘Cemex Dominicana’) sales network covered the country’s main consumption areas, which are Santo Domingo, Santiago de los Caballeros, La Altagracia, San Cristobal and San Pedro de Macoris. On May 8, 2000, Cemex Dominicana entered into a lease agreement with the government of the Dominican Republic related to the exploitation of a gypsum mine located at Las Salinas, Barahona, which has enabled Cemex Dominicana to supply local and regional gypsum requirements. The lease agreement expires on May 8, 2025 and may be extended by the parties.

Competition. As of December 31, 2022, the company’s principal competitors in the Dominican Republic were: Cementos Cibao, a local producer; Domicem, a mixed Italian/local cement producer; Cementos Argos, a grinding operation of a Colombian cement producer; Cementos Santo Domingo, a cement grinding partnership between a local investor and Cementos La Union from Spain; Cementos Panam, a local cement producer; and Cementos Andino, a grinding operation; and a partially constructed cement kiln of a Colombian cement producer, inactive.

Description of Properties, Plants and Equipment. As of December 31, 2022, Cemex Dominicana operated one cement plant in the Dominican Republic, with an installed cement capacity of 2.4 million tons per year. As of December 31, 2022, Cemex Dominicana also owned five ready-mix concrete plants (one was temporarily inactive), one aggregates quarry (inactive), two land distribution centers and two leased marine terminals.

Urbanization Solutions. In the Dominican Republic, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted primarily of multiproducts, among others. This business is located across the country.

Rest of SCA&C

As of December 31, 2022, the company’s operations in the Rest of SCA&C segment consisted primarily of the company’s operations and activities in Peru, Puerto Rico, Nicaragua, Jamaica, the Caribbean and Guatemala, excluding the company’s Caribbean TCL segment.

Operations in Puerto Rico

As of December 31, 2022, Cemex de Puerto Rico, Inc. (‘Cemex Puerto Rico’) was the company’s main subsidiary in Puerto Rico.

Description of Properties, Plants and Equipment. As of December 31, 2022, Cemex Puerto Rico operated one grinding mill, with an installed cement capacity of 1.3 million tons per year. As of that date, Cemex Puerto Rico also operated four ready-mix concrete plants (three were temporarily inactive), two land distribution centers and one marine terminal used for fly ash. As of December 31, 2022, Cemex Puerto Rico also owned one aggregates quarry, which is inactive.

Urbanization Solutions. In Puerto Rico, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted primarily of lime, among others. These businesses are located across Puerto Rico.

Operations in Nicaragua

As of December 31, 2022, Cemex Colombia and Corporación Cementera Latinoamericana, S.L.U., both CLH subsidiaries, indirectly and directly owned 100% of Cemex Nicaragua, S.A. (‘Cemex Nicaragua’), the company’s operating subsidiary in Nicaragua.

Description of Properties, Plants and Equipment. As of December 31, 2022, the company leased and operated one cement plant (active) and owned one grinding mill with a total installed cement capacity of 0.7 million tons, six ready-mix concrete plants (two were temporarily inactive) and two distribution centers in Nicaragua. The company also had three aggregate quarries (all of them inactive). Since March 2003, Cemex Nicaragua has also leased a 100,000 tons milling plant in Managua, which has been used exclusively for pet coke milling.

Urbanization Solutions. In Nicaragua, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted primarily of multiproducts. These businesses are located across Nicaragua.

Operations in Guatemala

As of December 31, 2022, CLH indirectly owned 100% of Cemex Guatemala, the company’s main operating subsidiary in Guatemala.

Description of Properties, Plants and Equipment. As of December 31, 2022, the company owned and operated one cement grinding mill in Guatemala with an installed cement capacity of 0.6 million tons per year. As of December 31, 2022, the company also owned and operated five land distribution centers (including one location at the cement plant), one clinker dome close to the company’s leased marine terminal in the southern part of the country and three ready-mix concrete plants (two were temporarily inactive).

Urbanization Solutions. In Guatemala, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted primarily of multiproducts, among others. These businesses are located across Guatemala.

Operations in the Rest of SCA&C

As of December 31, 2022, the company held a non-controlling position in National Cement Ltd. in the Cayman Islands, Maxcem Bermuda Ltd. in Bermuda and Societe des Ciments Antillais, a company with cement operations in Guadalupe and Martinique. As of December 31, 2022, Cemex España additionally indirectly held a 100% interest in Cemex Jamaica Limited, which operates one calcined limestone plant in Jamaica with a capacity of 120,000 tons per year and one hydrate line with a capacity of 4,800 tons per year.

As of December 31, 2022, the company operated a network of five marine terminals in these countries, which facilitated exports from the company’s operations in Mexico, the Dominican Republic and Puerto Rico. Three of the company’s marine terminals are in the Bahamas. As of December 31, 2022, the company also had a non-controlling interest in two other terminals, one in Bermuda and one in the Cayman Islands. The company also had three distribution centers in Guyana, Haiti and Peru, and one ready-mix plant (temporarily inactive) in Guyana.

Urbanization Solutions. In Jamaica, for the year ended December 31, 2022, in terms of relevant revenues, the company’s Urbanization Solutions business consisted primarily of lime. This business serves specific customers.

Trading Operations

In 2022, the company traded 11.8 million tons of cementitious and non-cementitious materials, in 92 countries, including 9.6 million tons of cement and clinker and 2.3 million tons of cementitious and other materials. In addition, the company traded 4.1 million tons of coal and pet coke. Slightly more than 4.5 million tons of the traded cement and clinker consisted of exports from the company’s operations in Mexico, Croatia, Spain, Germany, Trinidad and Tobago, Barbados, and Panama, among others. Slightly above 5.0 million tons remaining were purchased from third parties in countries, such as Vietnam, Turkey, Saudi Arabia, Spain, Greece, and Algeria. In 2022, the company traded 1.6 million tons of granulated blast furnace slag, a non-clinker cementitious material, and 0.6 million tons of other products. This information does not include discontinued operations. The company’s trading network enables the company to maximize the capacity utilization of the company’s facilities worldwide while reducing the company’s exposure to the inherent cyclicality of the cement industry.

In addition, the company provides freight service to third parties, which allows the company to generate additional revenues.

History

CEMEX, S.A.B. de C.V. was founded in 1906.

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