‘Ove: the last two decades, Mexico's largest cement man- ufacturer, Cemex, has transformed itself from a primarily Mexican operation into the second-largest cement company in the world behind Lafarge Group of France. ‘Cemex has long been a powerhouse in Mexico and cur- rently controls more than 60 percent of the market for cement in that county. Cemex’s domestic success has been based in large part on an obsession with efficient ‘manufacturing and a focus on customer service that is tops in the industry ‘Cemex is a leader in using information technology to ‘match production with consumer demand. The company sells ready-mived cement that can survive for only about 20 minutes before solidifying, so precise delivery is im- portant. But Cemex can never predict with total certainty what demand will be on any given day, week, or month To better manage unpredictable demand patterns, Cemex developed a system of seamless information technology including truck mounted global positioning systems, radio transmitters, satellites, and computer rardware—thet allows it to control the production and distribution of cement like no other company can, re- sponding quickly to unanticipated changes in demand and reducing waste. The resuits are lower costs and ‘superior customer service, both cifferentiating factors for Cemex. (Cemex’s intemational expansion strategy was driven by ‘a number of factors. First, the company wished to reduce is reiance on the Mexican constuction market, which was characterized by very volatile demand. Second, the com- pany realized there was tremendous demand for cement in many developing countries, where significant construc: tion was being undertaken or needed. Third, the company believed that it understood the needs of construction busi- ‘nesses in developing nations better than the established ‘multinatonal cement companies, all of which were from eveloped natons, Fourth, Cemex believed that it could create significant value by acquiring inefficient cement comparies in other markets and transferring its skills in customer service, marketing, information technology, and production management to those urits. The company embarked in earnest on is international ‘expansion strategy in the 1990s. Initially, Cemex targeted other developing rations, acquiring established cement makers in Venezuela, Colombia, Indonesia, the Phiip- pines, Egypt, and several other countries. It also pur- chased two stagnant companies in Spain and turned them arcund. Bolstered by the success of its Spanish ventures, Cemex began to look for expansion opportuni- ties in developed nations. In 2000, Cemex purchased Houston-based Southland, one of the largest cement Companies in the United States, for $2.5 billion. Following the Southland acquisition, Cemex had 56 cement plants in 30 countries, most of which were gained through acquisitions. In al cases, Cemex devoted great attention to transferring its technological, management, and mar- keting know-how to acquired units, thereby improving their performance. In 2004, Cemex made another major foreign invest- ‘ment move, purchasing RMC of Great Britain for $5.8 bil- lion, RMC was @ huge multinational cement firm with sales of $8 billion, only 22 percent of which were in the United Kingdom, and operations in more than 20 other nations, including many European nations where Cemex had no presence. Finalized in March 2005, the RMC ‘acquisition transformed Cemex into a global powethouse in the cement industry. Today it generates more than {$16 billion in annual sales and operations in 50 countries. Only about a third of the company's sales are now {generated in Mexico. Ironically, President Trump's plan to build a wall along the Mexican-US. border could benefit Cemex, which has six cement plants on the US. side of the border within delivery distance of the pro- posed wall ‘Sources: C. Piggat, “Cemex’s Stratosphetie fis” Latin Finance, ‘March 2001, p. 76; F Smith, ‘aking Cement a Household Word” Los Angeles Tines, January, 2000, p.CID. Hel, “Cemex attempts, to Cement its Future” The Industry Standard, November 6, 2000; Diane Lindquist "From Cement to Senices” Chief Executive, Noveriber 2002, pp. 48-50; “Cementing Global Success, Strategic Direct Investor March 2003, p 1: MT. Desham “The Cemex Surprise Latin, Finance, November 2004, pp. 1-2; “Holcim Seeks to Acquire Aggregate” The Wall Sree! Jour, January 13, 2005, .& Lyons, “Comex Prowls for Deals in Beth Chin and india: The Wal Steet Journal, January 27,2006, p. C4 S. Donnan, “Cemex Sells 25 Percent ‘Stake in Semen Gresk” Frcom, May 4 2006, pt, J. Berg “Trump's Wall Could Benefit This Mexican Company.” CBS Money Watch, January 26, 2017