CEMEX TODAY

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Transcript of CEMEX TODAY

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CEMEX TODAY

CEMEX is one of the three largestcement companies in the world, withmore than 77 million metric tons ofproduction capacity. Through operating subsidiaries in four continents, CEMEXis engaged in the production,distribution, marketing, and sale ofcement , ready-mix concre te ,aggregates, and clinker. It is also theworld’s largest trader of cement and theworld’s leading producer of whitecement.

Chariman’s Message

Safety

Health and Quality of Life

Environment

CEMEX Ecoefficiency Program

• CEMEX North AmericaMexicoUnited States

• CEMEX Europe & AsiaSpainPhilippines

• CEMEX South America & CaribbeanVenezuelaColombiaPanamaDominican RepublicCosta Rica

• CEMEX North AmericaMexicoUnited States

• CEMEX Europe & AsiaSpainPhilippinesEgypt

• CEMEX South America & CaribbeanVenezuelaColombiaPanamaDominican RepublicCosta Rica

Directory

Study Toward a Sustainable Cement Industry

CEMEX around the world

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Lorenzo H. ZambranoChairman of the Board and Chief Executive Officer

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Our commitment and efforts to continuously improveour performance in the Environmental, Health &Safety areas have significantly contributed to CEMEX'soutstanding economic results over the past ten years.During this period, we have become a multinationalcompany, growing from the 28th to the third-largestcement company in the world.

This year we achieved significant progress in allareas; among them is the improvement in our safetyperformance. In the fourth quarter, we reached ourgoal established in 1997 to reduce our accidentrate to 1% in our 40 cement plants located in 10countries.

We continued to strengthen our accidentprevention culture by instituting the CEMEX

Safety Award to recognize the cement facilityand the ready-mix concrete region having

superior performance in industrial safety.

Our Sustainable Development effortsinclude the participation, together

with nine other global cementcompanies, in a study of our

industry that analyzespresent and future

strengths and

opportunities inorder to continuegrowing in equilibrium withsociety and the environment.

In this report we also share with yousome of the ecoefficiency cases thathave allowed us to increase efficiencyin raw material and energy usage. Theseefforts have reduced the environmentalimpact of our operations and have alsoresulted in signif icant cost savings.

We have also confirmed our commitment toentrepreneurial integrity and to social responsibilityby formalizing and publishing the CEMEX Codeof Ethics. This Code includes guidelines with respectto our relationships with suppliers, clients, thegovernment, and the communities in which weoperate. It also emphasizes the importance ofprotecting the environment and the health and safetyof our employees.

We continue to support an environmental culture andwildlife conservation. In 2000, CEMEX produced andpublished its eighth Ecological Book and held theThird Annual International Photography Awards tohighlight and encourage environmental awareness.We also began an important project in Mexico byacquiring a portion of a protected natural reserve.Among the primary objectives of this project are(1) assuring the preservation of the reserve, and(2) encouraging studies and activities that fosterthe sustainable harvest of natural resources.

With concrete actions such as these, andwith the enthusiasm and teamwork of ourpeople, we keep focused on ourmission to be the most efficient,profitable, and safest multinationalcement company in the world.

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CEMEX SAFETY AWARD

To recognize the efforts and dedicationof all of our business units, we institutedthe CEMEX Safety Award, an annualprize given to the cement plant andready-mix region (cluster) thatdemonstrates exceptional safetyperformance during the previous year.The first ceremony was held at theExecutive Committee Meeting inMadrid, Spain, on March 15, 2000.During the ceremony, our CEOpresented the award to CEMEXVenezuela's Pertigalete cement plantand Ferrocarril concrete for theiroutstanding performance in IndustrialSafety during 1999.

Poster of the 2000Safety Month: "Justone day withoutaccidents: today".

CEMEX's Safety Management System has as main componentsthe Safety Manual, Monitoring and Tracking Electronic System(SISTER), CEMEX Safety Award, Communications and Synergynetworks, and the specific programs implemented in each countryin which we have operations. This management model has allowedus to establish corporate guidelines; share practices andexperiences among the company's business units, which hasenabled us to achieve a sustained decrease in accidents; andrapidly integrate new acquisitions to our safety culture.

RESULTS

The consolidated accident rate during 2000 improvedcompared with the previous year, declining from 2.5% to2.3%.

It is important to mention that our 40 cement plants located in 10countries achieved a 12% reduction in the accident rate, to 1.6%.In the last quarter of the year, we reached our first safety goal,established in 1997, to operate with a 1% accident rate.

During this year, we began bringing our operations in Costa Ricaand Egypt up to CEMEX's standards. Both showed an outstandingimprovement by decreasing their accident rates by 50% and 61%,respectively, in comparison with the first half of the year.

Of the 40 cement plants, 4 facilities operated with zero accidents(CEMEX Spain's Lloseta and Tenerife plants, CEMEX Colombia'sSanta Rosa plant, and CEMEX Venezuela's Guayana plant), while12 other achieved an accident rate of less than 1%.

On the other hand, average severity rate increased to 30 lostworkdays per case compared to 21 in the previous year.

FOSTERING A SAFETY CULTURE

To continue promoting our safety culture, February 2000 was"CEMEX Safety Month" in all countries in which the companyoperates. Some of the events that occurred during this monthincluded conferences, contests, emergency drills, training courses,preventive medicine campaigns, sporting events and recognitions,among others.

Winners of the "1999 CEMEX Safety Award" with our CEO.

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Drivers Certification in the Ready-Mix Concrete sector.

ACCIDENT RATE %

1997 1998 1999 2000

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AVERAGE SEVERITY RATE

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ACCIDENT RATE %CEMENT SECTOR

1997 1998 1999 2000

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"CEMEX Safety Award" trophies.

During the last quarter of 2000, the cement sector achieved anannualized accident rate of 1%, reaching our first safety goal

established in 1997.

ACTIONS IN THE READY-MIXCONCRETE OPERATIONS

With the objective of increase the safety in the ready-mix concretesector, we identified and consolidated the best safety practices inthese operations in order to standardize and implement them in allof our operations in the world. Likewise, we initiated the internalcertification process for truck drivers in Mexico, Colombia, andDominican Republic.

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This year we continued with our programs that focused on promotinghealth care to our employees and their families. CEMEX recognizesthe different needs of its employees with respect to their healthand quality of life and seeks to fulfill them by promoting a healthyand supportive work environment and providing support programsand options to help employees balance the different aspects oftheir lives.These initiatives are a fundamental value to our employees andour company in that they help to ensure employees' well-beingand productivity while fostering their personal andprofessional development.

CODE OF ETHICS

The effort to formalize and distribute to employees the CEMEXCode of Ethics was spearheaded by our CEO and coordinated byCorporate Human Resources. Nearly 100 people from almost alloperational areas and from almost all countries in which CEMEXoperates participated in this important initiative.The Code of Ethics reflects CEMEX's commitment to entrepreneurialintegrity and social responsibility. It manifests the respect andhonesty with which CEMEX's people maintain their relationshipswith their colleagues, clients, and suppliers, and with the authorities,the communities in which the company operates, and society ingeneral.The Code of Ethics will help us to guarantee that our fundamentalvalues and principles will be implemented in each of ourbusiness units in all of the countries in which we operate.

PILOT PROGRAMFOR STRESS CONTROL

We are all exposed to stress in our daily lives that increases withthe complexity of our work environment. For example, rapidlydeveloping technology and the need to be more productive in ourwork create stress. With this in mind, we started a pilot programfor Optimal Stress Management. More than 650 employees fromour operations in Mexico and Panama and from several corporateareas participated in this program. The program applies an electronictool for the identification, self-diagnosis, and quantification of stress.The results indicate the main areas of opportunity and suggestactions for a better handling and control of the natural stressreaction that, in extreme cases, can cause serious harm to ourhealth and deterioration in our quality of life. Also, Dr. ClaudioZapata, a recognized expert in the field of stress management,developed and conducted workshops for stress knowledge andmanagement.Because this initiative achieved excellent results, we plan to extendthe reach of these tools to all the employees of the organizationby 2002.

Multifunctional group working with the Code of Ethics.

Audio CD with stress management techniques.

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PROGRAM FOR THE HEALTH CAREOF FREQUENT TRAVELERS

CEMEX's growth and geographic diversification has resulted inmore and more employees and executives traveling outside theircountry of residence. In order to promote their health and well-being while they travel, we implemented a program that providespractical advice for the prevention of the most common diseasesas well as contact information for the international medical networkin case of illness. In addition, the company provides first aid kitsfor use in an emergency while traveling on behalf of the company.

VACCINATION CAMPAIGNS

Because prevention is the best way to ensure good health, wecontinued our Permanent Vaccination Campaign. Through thisprogram, CEMEX provides its employees with vaccines againstHepatitis A, Hepatitis B, Tetanus, Rubella, Yellow Fever, and Flu,among others. As of today, our employees and their families livingin the metropolitan areas of Monterrey, N.L., Mexico, have receivedmore than 3,600 vaccinations through this program.CEMEX headquarters promotes the Permanent VaccinationCampaign, and the program is incorporated into the particularprograms developed by the business units in each of the countriesin which CEMEX operates.

PHYSICIAN TRAININGAND CERTIFICATION

We have instituted a program to ensure the professionaldevelopment of our physicians in order that they may provide thebest possible services in occupational medicine to our employees.As result, this year thirteen physicians have obtained theircertification from the Mexican Council for occupational Medicine.

WOMEN'S INTEGRALDEVELOPMENT PROGRAM

We continued with this program, initiated in 1998, with the objectiveto offer a company-facilitated alternative for the development ofthe female employees and the wives of employees and executives.The program seeks to help employees to maintain a balancebetween work and family and to reinforce family stability.The program consist of a series of monthly conferences concerning,among others, effective communication, interpersonal relationships,and stress management. In 2000, approximately 115 women fromdifferent corporate areas and CEMEX Mexico participated.

Support for health care of our frequent travelers.

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Multinational EHS e-Meeting.

Scenic view of "El Carmen" project.

ENVIRONMENTAL PROTECTION

CEMEX keeps focused on its vision to work "In Harmony withNature®" through the application of its strategy for SustainableDevelopment, which comprises three important elements: 1) cutting-edge Technology in our operational processes; 2) promotion of anEnvironmental Culture, and; 3) use of the most effective Equipmentand Systems to protect our employees, neighboring communities,facilities, and the environment. Our efforts to improve our operationsare included in the CEMEX Ecoefficiency Program (described inthe following chapter), which also presents some cases that thisprogram has generated. With regard to Sustainable Development,CEMEX is participating in a study of the sustainability of our industryconducted by an independent consultant. Details of this projectare presented on page 13 of this report.

EHS POLICY

In 1993, we established our first Environmental Policy, which wasimplemented in all of our operations around the world. This Policywas updated in 1997 to include Safety and Health. In order toassure its validity, the EHS Steering Committee, with theauthorization of our CEO, again revised the Policy in 2000.

EMISSIONS REDUCTION

During 2000, CEMEX's efforts to reduce emissions in its operationsincluded the installation of new dust collectors in the Lloseta plantin Spain, in the Pertigalete plant in Venezuela, and in the constructionof a new mill in Dominican Republic. These actions required aninvestment of US$6 million. CEMEX also initiated optimizationprograms and brought to its standards the recently acquiredcompanies in Costa Rica and Egypt. In those facilities, we arealready seeing results in energy optimization, efficient use ofraw materials, and reduced atmospheric emissions.

We are also participating together with nine other multinationalcement companies to design and implement a joint strategy andproactive efforts with regard to Global Warming.

E-MEETING

CEMEX held its Fourth Annual EHS Multinational Meeting bymeans of its virtual communication system, through whichparticipants shared their knowledge and experiences. A memberof the Corporate Communications area also participated with theEHS representatives of each country in this meeting.Although virtual communication tools provide significant advantages,we believe that human contact is important to guarantee effectiveteamwork and synergy and the free exchange of information. Forthis reason, regular, physical multinational meetings willcontinue to be organized and conducted every two years.

ISO 14001 CERTIFICATIONS

During 2000, we continued with our ISO certification processes.CEMEX Spain obtained ISO 14001 certification for 6 cementplants; now 7 of its 8 existing facilities, as well as 1 ready-mixconcrete operation, are certified. Two of CEMEX Philippines'cement plants were also certified. CEMEX Mexico has certified11 of its 15 cement plants, and CEMEX's operations in Venezuela,Colombia, Dominican Republic, and Panama are implementingthis international standard.

ENVIRONMENTAL CULTURE

Our efforts to promote an environmental culture are based on theprinciple that "We take care of those things we know," and aredirected to our personnel, our neighboring communities, anddifferent sectors of society.

TRAINING

In accordance with our company values, CEMEX promotes andmaintains its environmental culture primarily through training andinduction programs that are carried out in all of our operations forour employees, as well as through various events involving ourcommunities.

ECOEFFICIENCY CULTURE

CEMEX promotes its Ecoefficiency Culture through the internaland external distribution of the Ecoeffciency Brochure, as well aswith seven informative capsules in CEMEX's TV channel, with aninitial audience in Mexico, Panama, and Dominican Republic.

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ECOLOGICAL BOOK

On November 15, 2000, CEMEX presented the ecological bookentitled "Celebration of the Land: The Last Sanctuaries" at theNatural Sciences National Museum in Madrid, Spain. This book,the eighth title that CEMEX has produced, was published incollaboration with the Mexican organization Agrupacion SierraMadre, highlights the beauty and significance of thirteen legendaryregions around the world and emphasizes their need for greatercare. The book was written in collaboration with James Lawrence,and the prologue was written by His Royal Highness, The Princeof Asturias. As in previous years, approximately 5,000 copies ofthis book were donated to several international conservationorganizations. These organizations sell the books to obtainnecessary funding for conservation research and projectssupport.

THE INTERNATIONAL PHOTOGRAPHY AWARD

The Third Annual Nature's Best International Photography Awardceremony was held on October 4, 2000, at the National Museumof Natural History Smithsonian Institution in Washington, D.C.Twenty thousand professional and amateur photographers from10 countries participated in the call for the award, published inNature's Best magazine which is supported by Nikon, CEMEX,and FedEx.

WILDLIFE CONSERVATION

Our actions to reduce the environmental impact of our raw materialextraction activities go beyond our obligation to do so. Our visionis to "support the biodiversity conservation of our planet and tofacilitate the generation of more and better alternatives for thesustainable harvest of wildlife. This will create jobs and developknowledge to guarantee the optimal use of natural habitats forsociety's benefit."

"EL CARMEN" PROJECT

This wildlife reserve is located in the north of the state of Coahuila,Mexico, bordering on the Big Ben National Park in the state ofTexas in the United States. It has an area of approximately 55,000-hectare, 60% of which are located within the Maderas del CarmenProtected Natural Reserve. "El Carmen" has a beautiful variety ofecosystems, from great expanses of open desert to pristinemountain forests displaying some of the greater natural landscapesin Mexico and North America. As of today, we have investedapproximately US$4 million in land, infrastructure, scientific research,habitat remediation, and wildlife reintroduction.

GULF OF CALIFORNIA PROGRAM

Conservation International (CI) coordinates this program, andCEMEX supports CI's efforts with a total funding package ofUS$2.5 million by 2004. This funding allows CI to continuedeveloping its efforts to preserve the Gulf of California's biodiversityand local culture, which simultaneously promote the region'ssustainabil ity and the rural economy's development.

U.S. GOVERNMENT RECOGNITION

The U.S. government recognized CEMEX's environmentalconservation efforts during a ceremony held on May 19, 2000, atthe Mexican Cultural Institute in Washington, D.C. The Director ofthe U.S. Fish and Wildlife Service (USFWS), Jamie RappaportClark, said of CEMEX's efforts: "CEMEX has shown an incrediblecommitment to the environment. Perhaps its greatest contributionhas been its role in encouraging the involvement of the privatesector in environmental protection".

Presentation of the USFWS's recognition to CEMEX.

Ecological Book.

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We define ecoefficiency as "efforts to optimize energy and raw materialefficiency to produce an economic and ecological benefit derivedfrom a reduction of environmental impact."

The CEMEX Ecoefficiency Program (CEP), formally launched in 1994,applies this principle to our operations by leveraging the experienceand innovative capability of our technical and administrative peopleto capitalize on opportunity areas that contribute to the company'sprofitability and sustainable development. For example, in 2000 theCEP generated economic and environmental benefits by reducing theuse of electricity by 160,000 MG, which is equivalent to the electricalconsumption of a metropolitan area with approximately 100,000inhabitants for one year. The company has also saved 723,050 MMBTU in thermal energy, which is the equivalent of 130,000 barrels ofpetroleum.

Through these reductions in energy consumption and throughimprovements in our processes, we reduced CO2 emissions by 263,000tons, which is equivalent to the CO2 sequestered in one year by 33,000hectares of pine forest. With these efforts, we continue to contributeto the worldwide fight against global warming.

Since 1994, the estimated economic benefits total more than US$60million. CO2 emissions were reduced by approximately 2.5 millionmetric tons.

These were achieved mainly through the following ecoefficiencyactions:

• Developing and implementing technology and innovative practicesfor production processes and new cement plant design.

• Selective mining techniques and optimal quarry exploitation.

• Recycling and reuse of materials.

• Use of alternative raw materials (blast furnace slag and fly ash, byproducts generated from steel manufacturing and power stations,among others).

• Use of natural cementing materials (pozzolana).

• Use of alternative fuels by reusing wastes (petcoke, wasteoils, used solvents, etc.).

The following are some ecoefficiency cases in CEMEX's businessunits around the world.

The following table sets forth the economic impact of the CEPduring 2000:

Millon USDOptimized use of energy 9.2Optimized use of materials and natural 5.6resources (including water)Use of alternative fuels and wastes 2.5Reduction of emissions and wastes 1.4Office paper recycling 0.05

Total 18.75

Tepeaca cement plant, Puebla, Mexico.

The above consolidated consumption rates ofelectrical and thermal energy reflect the ecoefficientactions performed in our operations for the production

of cement.

THERMAL ENERGY CONSUMPTION

kcal

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BACKGROUND

The problem: In Mexico, the fact that there are fewoptions to reuse and adequately dispose of by-productsand wastes from different industries presents anenvironmental problem. These by-products contain,among others, minerals and metals traditionally used inthe cement production.

Ecoefficient Solution: The cement plants are equippedto reuse such materials in the production process. Thecement production process's operational conditions-especially its high kiln temperatures-allow these by-products to be utilized in an environmentally safe mannerwhile maintaining cement quality standards. In addition,the company coordinates with generator industries toguarantee constant quality and a steady supply ofthese by-products.

RESULTS

•Utilization of by-products (additions) was increased by15.3%.•Substitution of 370,000 metric tons of clinker withby-products, representing a reduction of 296,000 metrictons of CO2 emissions.•Reduction in thermal energy consumption by 2,033Gcalories per year, representing a reduction of 720 tonsof CO2 in the year.•Economic benefits of US$2.4 million per year.

CONCLUSION

The utilization of alternative raw materials, commonlycalled additions, in cement production allow us toconserve natural resources, increase the useful life ofthe quarries, reduce thermal energy consumption, anddecrease atmospheric emissions. Altogether, theseactions reduce environmental impact and increaseproduction without affecting the quality of the cement.

BACKGROUND

Objective: To reduce water consumption inthe Navigation Plant, CEMEX USA's largestready-mix concrete facility in Texas, locatedin Houston.

Ecoefficient Solution: CEMEX initiatedconstruction of the storm and wastewatertreatment facility in 2000. The treatedwastewater will be reused in the company'soperations for several purposes.

RESULTS

•Elimination of the wastewater (effluent)discharges to the exterior which safeguardswater quality in nearby water supplies.•Recycling the treated water conserves morethan 68,000m3 of supplied water, whichrepresents up to 50% of the company'scurrent annual water requirements.•We will recycle enough water to save anestimated US$60,000 annually in waterexpense.

CONCLUSION

By investing US$190,000 for the wastewatertreatment construction there will be reductionin the consumption of water supplied by thecity. This will provide annual cost savingsestimated at US$60,000. We will alsoconserve this valuable natural resource sothat the nearby communities can use it tosatisfy their needs.

Concrete is an important element in the society.

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BACKGROUND

CEMEX invested in the Alcanar cement plant toupdate current facilities and to implement a processcontrol system that facilitates data collection andmanagement, optimizes production processes,and reduces the standard deviation in the kilns'feed.

RESULTS

•In 2000, CO2 emissions were reduced by16,000 metric tons.•Average thermal energy consumption was reducedby 18 kilocalories per kilogram of clinker.•We achieved greater operative stability in thekilns, increasing efficiency and utilization.•We achieved cost savings in 2000 ofUS$165,000.

CONCLUSION

Different improvements to the facilities andoptimization of processes increased the stabilityand the energy efficiency of the plant's kilns,resulting in the reduction of CO2 emissions duringclinker production.

BACKGROUND

The Problem: The design of the former burner ofkiln 3 at the Solid plant made regulating the flamevery difficult, a fact which affected the life of therefractory bricks in the kiln's burning zone.

Ecoefficient Solution: CEMEX installed a newtechnology burner in the kiln, whose objective wasto stabilize the flame, increase the life of refractorybricks, and decrease Nitrogen Oxide (NOx)emissions.

RESULTS

•Nitrogen Oxide (NOx) emissions were reducedby 13%.•The kiln's burner has the flexibility to use 100%petcoke (petroleum coke).•The burner's operation is easier to control.•A stable coating is formed inside the kiln, whichlowers the kiln shell temperature.•The life of the refractory bricks was increased,reducing the cost of maintenance.•During 2000, the cost savings were US$340,000.

CONCLUSION

The US$430,000 investment to install a new burnerallows us to use 100% petcoke, increase the lifeof refractory bricks, reduce maintenance costs andNitrogen Oxide (NOx) emissions, and produce anannual economic benefit of US$340,000.

Solid cement plant.

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BACKGROUND

The Problem: Dolomite is a material containinga high amount of MgO (16%) and is normally foundin the limestone reserves. It was traditionallyconsidered a residue and was thus removed aswaste and sent to landfills.

Ecoefficient Solution: We evaluated the use ofdolomite as a limestone substitute in theaggregates with a positive result and created newaggregates markets for 260,000 metric tons ofdolomite. Adding dolomite into the cementproduction process increased the MgO quantityin the raw material from 1 to 2.5% without affectingthe cement's quality.

RESULTS

•Eliminated the need to dispose of 1,600,000metric tons of dolomite per year by adding thismaterial to the raw material and the aggregates.As a result, municipal landfills have more spacefor the disposal of other waste material.•Reduced the extraction of minerals from thequarry, increasing the life of the limestone reservesby four years and preserving natural resources.•Cost savings during 2000 amounted toUS$1,112,000.

CONCLUSION

By utilizing dolomite as an aggregate, we no longerhave to dispose of it as waste. We also optimizethe quarry's useful life, preserve natural resources,and reduce the environmental impact of thisprocess.

BACKGROUND

The Problem: The coal industry generates processwastes that can pollute water and air if not properlymanaged. Recycling of this waste was notconsidered in Colombia because of thecharacteristics of the waste and lack of anavailable market for it.

Ecoefficient Solution: We performed several testsin kiln 2 of the Caracolito plant to determine thefeasibility of coal dust utilization through a safehandling. The results were successful; we wereable to replace up to 40% of the coal fed into thekiln with this coal fines.

RESULTS

•Reduced coal consumption and preserved fourto six metric tons/hour of this natural resource.•By using this by-product, we reduced annualCO2 emissions by 2,800 metric tons.•We saved electricity in the grinding process dueto the physical characteristics of the waste coal.•During 2000, we achieved cost savings ofUS$240,000.

CONCLUSION

Recycling of coal dust optimizes the use of naturalresources, reduces atmospheric emissions, andsolves an environmental problem related to thefinal disposal and storage of this potential air andwater contaminant. Hence, our solution contributesto pollution prevention.

Caracolito cement plant.

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Limestone quarry in Pertigalete, Venezuela.

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BACKGROUND

The Problem: The plant was operating with aninefficient packing system, and cement bags weremanually stacked. These processes generatedfugitive particle emissions in the workplace, andthe stacking required repetitive manual labor.

Ecoefficient Solution: We installed a more modernpacking and pallet system that allowed us to controland reduce particle emissions improvingthe workplace conditions.

RESULTS

•Improving the packing process reduces the fugitiveparticle emissions to which workers in this areaare exposed.•The new scheme improves efficiency in the truckloading process and minimizes the trucks' waitingtime.•Bag wastage was eliminated as the new machinedoes not tear bags.•Cement bag shipping in this business unit isprogrammed during the night to avoid the heavytruck circulation during the day when traffic in theaccess ways is high.

CONCLUSION

The US$650,000 investment decreases fugitiveemissions in the work area and improves workingconditions and workers' quality of life. In addition,we have increased sales due to a better dispatchservice and product presentation.

BACKGROUND

The Problem: The fan used to ventilate the clinkercooler had a 200-HP motor and consumed 124 KWH,which represents an operational cost of US$71,153per year. The cooler's hot gases were not used.Ecoefficient Solution: We installed a frequency speeddrive in the fan used to ventilate the clinker cooler,which allowed us to control its speed and reduceelectricity consumption. In this manner, gases arebrought to the heater of the secondary raw materialscrusher to reduce fuel consumption.

RESULTS

•The frequency speed drive allowed the fan to workwith a 150-HP motor and a 34% utilization rate,consuming 41 KWH. Consequently, we achievedsavings of 83 KWH during the year and US$23,564 inannual energy costs.•The utilization of hot gases in the secondary crusherreduced fuel consumption by 17 gallons per hour,generating cost savings of US$73,182 per year and areduction of 1,620 tons of CO2 emissions per year.•The utilization of 226 million m3 of hot gases in thesecondary crusher eliminates its direct discharges intothe environment.•During 2000, we achieved total cost savings ofUS$96,746.

CONCLUSION

With a total investment of US$30,000 to install afrequency speed drive there was lower electricity &fuels consumption, therefore a reduction in carbondioxide emissions. Additionally, non-renewable fossilfuels were preserved, and an economic benefit ofUS$96,746 was generated recovering the investmentin 3 months.

Frequency Speed Drive.

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Packing area in the Bayano cement plant.

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BACKGROUND

The Problem: The water consumed by the cementplant´s cooling processes, human needs, and theresidential area next to the plant is taken from theactual wastewater treatment system and deep waterwells located within the plant area. Due to water lossfrom high evaporation, it became necessary to reusemunicipal wastewater for the plant´s cooling processes.

Ecoefficient Solution: We built a treatment plant forwastewater generated in offices, the plant, and theresidential area (known as the Ciudadela). The treatedwastewaters are reused in the process and could alsobe used as irrigation for the green areas. As a result,water demand is reduced.

RESULTS

•Water demand from the water wells was reduced,and wastewater discharge to environment waseliminated.•Approximately 28 liters of treated water is recycledper minute in the process.•14,600 m3 of water are preserved per year.•During 2000, we achieved cost savings of US$24,400.

CONCLUSION

The US$200,000 investment to install the wastewatertreatment plant reduced water demand, preservingthis valuable resource and generating savings ofUS$24,400. We intend to share this initiative with othercompanies in the zone and invite them to follow thisexample.

The World Business Council for SustainableDevelopment (WBCSD) is a coalition of some 150international companies united by a sharedcommitment to sustainable development1, integratingenvironmental protection, social equity, and economicgrowth. In 1999, CEMEX joined the WBCSD.

Under the auspices of the WBCSD, the cementcompanies Holderbank, Cimpor, Lafarge, TaiheiyoCement, RMC, Heidelberger Zement, Votorantim,Siam Cement Industry, Italcementi, and CEMEX areparticipating in the study entitled "Toward aSustainable Cement Industry." This initiative startedin February 2000 having as main objective to pavethe way by which the cement industry can assureits sustainable development. The project will solicitthe views of a large number of stakeholders(suppliers, governments, environmental groups,communities, and others) as part of an independentinvestigation into the specific challenges, barriers,and opportunities facing the industry. The study mustbe presented at the beginning of 2002.

Battelle Memorial Institute is the lead consultantmanaging the main study, substudies, andsubcontractors. A small, independent assurancegroup will act as advisor and reviewer of the study.The group will ensure that the project has the correctfocus and processes, critique quality and balance,and act as a referee in case of disputes. Membershipis drawn from internationally recognized expertsrepresenting key stakeholder groups and geographicregions. Dr. Mostafa Tolba, former director of theUnited Nations Environment Program (UNEP), chairsthe assurance group. Other members are fromFrance, Hungary, Mexico, and the U.S.A.

More information is available athttp://www.wbcsdcement.org.

Brochure of the WBCSD's studyToward a Sustainable Cement Industry.

WA

ST

EW

AT

ER

T

RE

AT

ME

NT

P

LA

NT

Sanitary wastewater treatment plant.

A J

OIN

T E

FF

OR

T O

F M

UL

TIN

AT

ION

AL

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IES

1 According to the World Commission on Environment andDevelopment, development is sustainable where it "meets the needsof the present without compromising the ability of future generationsto meet their own needs."

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CEMEX manages its multinational operations undercorporate standards and by taking care of thepart icular social responsibi l i t ies of eachcountry.

In 2000, as in previous years, CEMEX's operationsaround the world continued implementing programsand projects to improve environmental performance,minimize environmental impact, and promote a betterquality of life for its people and neighboringcommunities. Our 40 cement plants have anopen-door policy and pursue community outreachand collaboration with the communities in which theyoperate and local governments.

The efforts and commitment of all of CEMEX's peoplein Environmental, Health, and Safety matters arevery important components of sustainable growthand of our outstanding performance as a businessand as a responsible multinational company.

The following are the most important achievementsin 2000 in each country in which CEMEX has controlof the operations.

As of December 31, 2000

Mexico

U.S.

Venezuela and Dominican Republic

Colombia

Central America and the Caribbean

Spain

Egypt

Philippines

Indonesia1

TOTAL

1 Considering CEMEX Asia Holdings’ 25% participation in Semen Gresik.

100

46.8

13.4

11.4

3.8

4.2

14.7

3.0

2.7

-

% OF TOTALASSETS

100

33.8

27.4

8.2

5.0

2.5

12.6

4.1

4.9

1.5

% OF TOTALSALES

77.2

27.2

12.6

5.4

4.8

2.0

10.4

4.0

5.8

5.0

PRODUCTIONCAPACITY

MILLION METRIC TONS/YEAR

51

15

13

4

5

2

8

1

3

-

CEMENTPLANTS

OWNED

17

3

3

-

-

6

1

-

-

4

CEMENTPLANTS

MINORITY PART.

464

220

90

46

18

5

75

-

1

9

READY-MIXPLANTS

164

70

50

15

6

9

7

-

5

2

LANDDISTRIBUTION

CENTERS

55

5

8

6

-

6

15

2

1

12

MARINETERMINALS

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SAFETY AND HEALTH

During 2000, 6 of the 15 cement plants and1 of the 15 ready-mix concrete clustersoperated within the accident rate goal of lessthan 1%. Also, the facilities that excelled in1999 received several awards: the Valles plantachieved the zero accident rate goal, andseven cement plants obtained an accidentrate of less than 1%.

For the second time, the Guadalajara andMonterrey plants obtained the HPR (HighlyProtected Risk Property) certification, and theTepeaca, Zapotiltic, Torreon, Huichapan, andTamuin plants were certified. In total, ourinsurance company has certified seven of our15 operating cement plants. In accordancewith current needs, we developed andimplemented a specific Labor Risks PreventionSystem throughout CEMEX Mexico. In theready-mix division, annual Environmental andSafety audits were performed in all the ready-mix clusters to design preventive andcorrective action plans.

CLEAN INDUSTRY ANDISO 14001 CERTIFICATION

The President of Mexico presented the CleanIndustry Certificate to the Valles, Hidalgo,CPN, Zapotiltic, and Tamuin plants; now 95%of our cement plants in Mexico hold thiscertificate.

This year we began our initiative to obtainISO 14001 certification in the Huichapan andTepeaca plants by June 2001. With thecertification of these two plants, 86% of ourcement plants in Mexico will be certified.

ENVIRONMENTALCONSERVATION

Continuing our Bighorn Sheep Program, wefinalized the construction of the PilaresReserve in Ocampo, state of Coahuila, Mexico,to reproduce the bighorn sheep and repopulatehistoric distribution areas in the states ofChihuahua, Coahuila, and Nuevo Leon, wherethis specie is extinct. With these efforts, weprotect species that are strategic to the region'ssustainability and support the Mexicangovernment's efforts to rescue endangeredspecies.

WATER SAVINGS

We are continuing with our Zero WaterDischarge Program, which promotes waterconservation. In 2000, as part of this program,we began to reuse of treated wastewater forcooling systems in the CPN, Torreon, andHuichapan plants. At the same time, theTepeaca and Valles plants increased up to50% the capacity of its wastewater treatmentunits. Through those actions during 2000, wesaved 4,600 m3 of water by substitutingsupplied water with treated wastewater.

RELATIONS WITHTHE COMMUNITY

AND PARTICIPATIONWITH NGO'S

All of our cement plants in Mexico are pursuingact iv i t ies to improve relat ions andcommunication with their neighboringcommunities. In 2000 we emphasized theSAAMAL (Tomorrow) program in the Meridaplant. In the first phase of this program weconducted a survey and interviewed 320families to design an outreach actions plan.Simultaneously, we began other similarprograms in different communities. This year,CEMEX Mexico participated in the update toour industry's air emissions regulation. In thenew version, the particle emissions limits arelower by approximately 20% and also regulatecombustion gases (NOx, SO2, and CO).

AIR EMISSIONS CONTROL

During 2000, we continued with our efforts tocontrol and reduce air emissions. Therefore,currently our fixed sources of air emissionsare operating with particle air emissions levelsthat are 40% lower than the maximum averagelimits established by the government. In 2000we emphasized the installation of a Jet Pulsebag filter in the clinker cooler of the Hidalgoplant, which reduced dust emissions to lessthan 20 mg/Nm3.

WASTE MANAGEMENT

In an environmentally responsible way,CEMEX Mexico recycled 23,294 liters of liquidwaste and 10,433 metric tons of solid wasteas alternative fuels. These actions helped tosolve the final disposal problem of these wastematerials. What's more important, weconserved nonrenewable natural resourcessuch as the fossil fuels.

Presentation of the Clean Industry Certificates by the President of Mexico.

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SAFETY AND HEALTH

The Arizona Region cement terminal achievedthe goal to operate with a zero accident ratein 2000. The cement division registered a0.86% accident rate, which meets our goal tohave an accident rate lower than 1%. Theseare the results of new safety and trainingprograms and policies that we haveimplemented throughout the year, such as asafety-training plan for all mining operations.

We also conducted several in-house accidentinvestigation seminars and worked with ACEInsurance to conduct a series of safety andhealth audits and training exercises throughoutCalifornia, Arizona, and Texas operations.

Because 29 CEMEX USA operating facilitiesoperated during 1999 without a lost timeaccident, during June 2000 each location wasawarded a commemorative outstandingachievement safety plaque to recognize thesites and workers for this outstandingachievement.

The Balcones cement plant again obtainedthe HPR (Highly Protected Risk Property)certificate from Factory Mutual System inthe year 2000.

WATER SAVINGS

Several ready-mix concrete plant sites arebeing modified to allow for the capture andreuse of process and storm water. We areconstructing retention and sedimentationbasins for the collection and treatment ofprocess and storm water, which will eventuallybe recycled as supplemental process water.Our goal is to save 68,000 m3 of water peryear.

RELATIONS WITHTHE COMMUNITY

AND PARTICIPATIONWITH NGO'S

Through several activities including collegescholarships to high school students and anessay contest regarding culture and the arts,CEMEX USA was able to support andenhance the important role the arts play indefining culture and values, while at the sametime contributing to the educational future ofhigh school students. Also, in order to supportyouth and senior citizen activities, CEMEXUSA agreed with the City of Redlands,California, to pay $0.10 per ton of aggregatematerial mined within the city boundaries.

AIR EMISSIONS CONTROL

As a result of the projects related to air qualityimprovement, currently the fixed sources ofair emissions are operating with air emissionparticle levels that are 20% lower than theaverage regulatory limits in this matter. Also,we started several paving projects during theyear that will greatly reduce fugitive dustemissions and will, in turn, enhance nearbyneighbors and community relations.

WASTE MANAGEMENT

One hundred percent of the Balcones plant'swaste lubricating oils, greases, and residualsolvents are recycled or blended and usedoff-site as supplemental or alternative fuels.

GROWTH

In October 2000, CEMEX acquiredSouthdown, Inc., and initiated the integrationof its 12 cement plants and other businessunits into CEMEX's operational standardsand guidelines.

Awards to recognize the sites and workers for theiroutstanding performance in safety.

ENVIRONMENTALCONSERVATION

CEMEX USA established a 10.9 hectareshabitat reserve at its Orange Street, California,operations. This area was chosen (1) becauseit is a sensitive habitat of limited distributionin California, and (2) in order to protect theendangered species such as the SanBernardino kangaroo rat and 17 other sensitiveanimal species.

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SAFETY AND HEALTH

During 2000, the Lloseta and Tenerife cementplants, the Canary Islands ready-mix concretecluster, and the bag producing facility operatedwith zero accident. Equally outstanding wasthe ready-mix concrete division's performance;that division de-creased its accident rate by50% compared with 1999. The Labor RisksPrevention Management System wascompleted and audited and wil l beimplemented in all the work centers during2001. Additionally, we made progress in theemergency response preparation in all theready-mix concrete plants. Finally, it concludedphase IV of the DuPont project with theevaluation of the progress of its SafetyManagement initiative.

We also took several actions to increase ouremployees' safety awareness. For example,we launched a promotional campaign withposters and declared February 2000 CEMEXSafety Month, during which we organizedseveral promotional events, including courses,seminars, safety contests, vaccinationcampaigns, and safety audits.

ISO 14001

Throughout 2000, the Vilanova, Morata,Castillejo, Alicante, Alcanar, and San Feliucement plants obtained the ISO 14001certification. In the ready-mix concrete division,Albuixech, was the first plant to obtain suchcertification in Spain. Now 7 of our 8 cementplants in Spain have this internationalcertification.

ENVIRONMENTALCONSERVATION

We continue with our project to restore thequarry of the Alicante plant. Fruit trees thatwe planted have produced a total of 2 millionkg of fruit and created up to 220 jobs duringthe harvest season. We are currentlyevaluating the restoration of other quarrieswith fruit trees or other region crops, such asgrapes.

RELATIONS WITH THE COMMUNITYAND PARTICIPATION

WITH NGO’S

We launched an Open Doors Program in allof our cement plants to improve communicationand to promote our relationship with ourneighbors. Local authorities, neighborassociations, worker's famil ies, andneighbors participated in this Program.

AIR EMISSIONS CONTROL

Our continuous actions to control and reduceemissions have caused fixed sources of airemissions to operate with particle air emissionslevels that are 60% lower than the averagemaximum limits established by the government.The new dust control equipment that weinstalled in the Lloseta (Mallorca) plant in 2000is an important investment. This high-techequipment -which cost US$2 million to install-is one of only three in the world.

Furthermore, was finished the installation ofcontinuous particle-monitoring equipment inall of cement plants' kilns, cement mills, rawmaterial mills, and coolers. Additionally, gas(CO, NOx, O2, and SO2) analyzers are beinginstalled in the Buñol, Vilanova, SanFeliu, and Alcanar kilns.

WASTE MANAGEMENT

We developed biannual plans to minimizepacking wastes in the cement plants, whichwill result in reduced consumption of paper,plastic, and other packing products.

Presentation of the ISO 14001 Certificate in the Vilanova cement plant.

WATER SAVINGS

Our most important achievements in the areaof water conservation are the installation ofa closed water loop for cooling, which allowedus to eliminate wastewater discharges to theenvironment from the open refrigeration circuit,and the reversal osmosis system, whicheliminated chlorides in the Alcanar plant. Wealso built a pond in the San Vicente plant witha 60,000 m3 capacity for storage of treatedwastewater, whose objective is to reuse it tosubstitute the municipal water in the cementplants and the quarries' fruit plantations. Asa result, 500,000 m3 of potable water weresaved in the year.

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SAFETY AND HEALTH

During 2000, CEMEX Philippines achievedan exceptional reduction of 77% in its accidentrate. The Solid cement plant's accident ratein 2000 was lower than 1%, as a result of thefollowing actions: (1) the integration of EHSissues into departmental meeting agendasand in its regular monthly meetings withcontractors in order to reinforce awareness;(2) the establishment of a Safety Policyspecifically for CEMEX Philippines' contractorsand employees; and (3) CEMEX Philippinesconducted First Aid and Occupational Healthand Safety seminars.

WATER CONSERVATION

In the APO Cement plant, the rejected waterfrom the reversal osmosis system is reusedfor green area irrigation and as a water sourcefor the nearby man-made lake, which containsfish and other wildlife. Both plants arepresently recirculating water in their coolingsystems.

AIR EMISSIONS CONTROL

We are continuing to implement projects relatedto air quality improvement. Examples includethe installation of new dust control systemsfor the Solid Cement's aggregates plant andits cement production process. ContinuousParticulate Monitors for our main kiln in theSolid Plant were also installed. The totalinvestment for these installations and the dustcollector modifications amounted to more thanUS$600,000 for both the APO and Solid plants.Both plants are now in compliance with existingregulations on air emissions, and monitoringshowed that emission levels are around 10%lower that existing government standards.

WASTE MANAGEMENT

The APO plant is presently reutilizing 100%of the waste oils generated in its power plantand from the operations in the cement kiln.Also, in the Solid plant the waste oils arebeing sent to government accredited recyclersfor recycling and reuse. Through these actions,CEMEX Philippines is reducing the wastesgenerated in the process by reusing andsupporting the recycling of 900,000 liters ofwaste oils.

Medical missions in support of the community.

COMMUNITY RELATIONS ANDPARTICIPATION WITH NGO’S

We are also actively pursuing severalcommunity relations projects, such asconcreting the neighboring roads in APO,providing irrigation canals for farmers in Solid,our Tree Planting Program, and Medical andDental Missions to nearby communities. Wealso provided assistance to nearbycommunities with regard to improving theirwaste disposal system and providing blooddonations in coordination with the PhilippineRed Cross. In 2000, 2,180 persons were giveneither medical or dental assistance.

Also continued to improve of the emergencyresponse system, including plans andequipment to respond to emergenciessuch as fires or spills.

To ensure the health of employees in theworkplace, we require annual physical andmedical examinations for all employees, andwe monitor the noise level in compliance withour Hearing Conservation Program inhigh-risk departments.

ISO 14001

In just two years, Solid and APO plants havealready achieved their ISO 14001 certificationsfor their Environmental Management Systems.These outstanding achievements have beenpossible thanks to the commitment anddedication of all CEMEX Philippines'departments and with the support of uppermanagement.

ENVIRONMENTALCONSERVATION

Although the quarries of the APO and Solidplants were not yet mined out, both plantshave undertaken annual reforestation efforts.The areas near the quarries, like the sides ofthe access roads of nearby neighborhoodand available open spaces inside the plant,were the usual trees planting sites. With theseefforts, since 1999 a total of 43 hectares havebeen restored, and more than 10,500 treesof native species have been planted.

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ECOEFFICIENCY

Our efforts to increase the efficiency of ouroperations and to improve our installationshave brought important benefits. Theoptimization of our energy consumption andnatural resources utilization has reduced costsand minimized environmental impact. Forexample, by the end of 2000, thermal andelectric energy consumption decreased by 5%and 10%, respectively, when compared withthe first quarter of the year.

AIR EMISSIONS CONTROL

The efforts we undertook to solve potentialproblems in our acquired installations resultedin the reduction of particle emissions on themain stacks of the kiln 1, the raw materialscrusher, and the raw material and cementmills.

Moreover, we are modifying our grindingsystems and clinker coolers and are shiftingto high-efficiency fans and eliminating the"false air." We have also redesigned thecalcinators and applied expert systems andadvanced control techniques. Altogether,these actions will bring greater environmentalbenefits such as the reduction of atmosphericemissions (including greenhouse gases) andenergy consumption and the optimization ofraw material utilization. All these action arepart of the CEMEX Ecoefficency Program.

ENVIRONMENTALMANAGEMENT SYSTEM

As part of the Post-Merger-Integration (PMI)process, the implementation of CEMEX'soperational and administrative practices arebringing CEMEX Egypt in compliance withCEMEX's internal standards and applicableenvironmental norms and regulations. To dothis, we performed environmental audits anddeveloped long-term strategies to help usprioritize the continuous improvementprograms and to ensure that our efforts domore than simply comply with environmentalregulations.

SAFETY AND HEALTH

As a result of CEMEX Egypt's integration toour Safety and Health Management System,during the second half of the year the accidentrate showed an important improvement,decreasing by 61% to 1.24% compared withthe first half of the year. Key factors in thissignificant achievement were our people'sefforts and managements' determined supportto implement CEMEX's Safe OperationsPractices Guidelines, a product of thesynergies and expertise of all our businessunits around the world. Another importantfactor was the dissemination of the CorporateEHS Policy.

The Assiut cement plant was also evaluatedfor Safety issues for the first time in order toestablish the basis for the future HPR (HighlyProtected Risk Property) certification.

Challenges and opportunities in the acquisitions of new companies.

19

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20

"Smiles Home" (Casa Hogar Sonrisas) in Pertigalete.

SAFETY AND HEALTH

During 2000, the Guayana, Vencemos BasauriCentro and Vencemos Basauri Occidenteplants operated with a zero accident rate.Meanwhile, the Mara, Lara, and Pertigaleteplants, and the ready-mix concrete clustersPremezclado Oriente and PremezcladoCentro, achieved an accident rate of less than1%. We must highlight several actions thatwere responsible for these results: (1) thecontinuation of the Improvement ProposalsProgram through Work Teams that promotethe direct participation of our people in theRisk and Accident Control and Prevention for

AIR EMISSIONS CONTROL

We are continuously implementing actions tocontrol and reduce atmospheric emissions.We invested US$2,800,000 in the incorporationof a bag filter in kiln 4 at the Pertigalete plant,and US$180,000 to optimize the electrofilterin mill 1 at the Mara plant. As a result, all fixedsources of air emissions are operating withparticle emissions levels that are 40% lowerthan the maximum average limits establishedby the government. These activit iesdemonstrate CEMEX Venezuela's firmcommitment to improve air qual i ty.

WASTE MANAGEMENT

Our evaluation of alternatives to using mainsolid waste derived from the cementproduction -paper and bags, among others-were outstanding. Consequently, we estimatethat in 2001 we will recycle, reuse, or reclaim25% of the solid waste generated by thePertigalete, Mara, and Lara plants.

COMMUNITY RELATIONSAND PARTICIPATION

WITH NGO'S

CEMEX Venezuela is constantly supportingthe Casa Hogar Sonrisas (Smiles Home) toprovide relief to some of the community'sneedy. Also arranged for several Safetycourses and seminars to be given to the safetycoordinators of the Industrial Technical Schooland for dental and deparatization talks to begiven in a Maracaibo school.

personnel and equipment; (2) the continuationof the Training Program, which includeseducational seminars and accidentinvestigation and safe work checklists, amongothers, and (3) basic courses to reinforceSafety Culture.

Additionally, we launched annual vaccinationcampaigns against tetanus, hepatitis, andinfluenza. Simultaneously, we initiated theQuality of Life Program in the cement sector,which offers our people lab analysis, medicalexams, and complementary studies such aselectrocardiograms, x-rays, scans,optometries, spirometries, and audiometries,among others.

ISO 14001

The implementation of the ISO 14001 standardis 70% complete in the Pertigalete, Mara,Lara, and Guayana plants; the goal is to obtainsuch certification by July 2001.

ENVIRONMENTALCONSERVATION

Through our Annual Reforestation Program,we used species cultivated in the nurseriesof the Pertigalete plant to restore 2.5 hectaresof the quarries' exhausted areas. At the Maraplant quarries we recovered almost 3 hectares,while at the Lara plant quarry we restored 2hectares. During 2000, we restored a total of7.5 hectares of land. Since 1998, CEMEXVenezuela has reforested a total of 26.6hectares.

WATER SAVINGS

In 2000, the wastewater treatment plants atthe Pertigalete, Lara, and Mara plants enabledus to clean 122,640 m3 of watewater. Alsoimportant is the installation of an oilywastewater treatment plant to allow for thereuse of treated water in the Lara plant cementproduction process. As a result, 100% of thatplant's wastewater discharge to the exteriorwill be eliminated.

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COMMUNITY RELATIONS ANDPARTICIPATION WITH NGO'S

As part of our social responsibility efforts, during2000 we donated US$260,000 to satisfy themost urgent needs of the people in thecommunities in which we operate. We alsoorganized several actions to support regionaldevelopment, directly benefiting more than 250people and indirectly helping almost 500families. At the same time, we participated withthe Colombian Cement Producers Institute toimplement the Environmental Guidelines forthe industrial and mining areas of our sector.In addition, we established a dialogue andround table with the Caracolito Plant'sneighboring community.

AIR EMISSIONS CONTROL

Our fixed sources of air emissions now operatewith particle emissions levels that are 30%lower than the maximum average limitsestablished by the government. This is theresult of the operative system parameter controland regular maintenance to the equipment.Also, we made new investments in emissionscontrol equipment, including US$50,000 forbag filter installation in the Santa Rosa plant'sadditive zone to control fugitive emissions inthe cement mill feeding process.

Furthermore, we continued participating withthe Air Quality Continuous Monitoring Networkfor dust emissions in the direct influence areaof the Caracolito Plant.

WASTE MANAGEMENT

We minimize waste oils generated in ourready-mix concrete installations by recyclingthem in processes external to the company.In doing so, we eliminate the need to disposeof this waste in another, less environmentallyfriendly manner, and we also support theconservation of nonrenewable naturalresources.

ENVIRONMENTALCONSERVATION AND

CULTURE

We continued our efforts to restore theecological reserve "La Fiscala." During 2000,we restored almost 4.3 hectares of the quarry'sexhausted area by planting 5,200 plants. Wealso provided systems to control sanitarywastewater and storm water executed at thequarry's perimeter.

To further support an environmental culture,during a ceremony that took place inDecember 2000, we donated the bookCelebration of the Seas to the EcologicalGroup of Tolima University, which is dedicatedto environmental education and the searchfor alternative schemes and systemsfor sustainable development.

WATER SAVINGS

Our water conservation efforts during 2000saved more than 148,000 m3 of water. Theseinclude: (1) infrastructure construction tocontrol storm water in the ready-mix concretearea and in the Caracolito plant; (2) efforts toincrease the capture and utilization of stormwater in the production process at the Cucutaplant; and (3) the industrial water recirculationprogram at the Chimita aggregates plant inBucaramanga-Santander.

SAFETY AND HEALTH

The Santa Rosa cement plant and theOperaciones Especiales ready-mix concreteplant reached the goal of operating with zeroaccidents. There was also an exceptional55% reduction in the accident rate of CEMEXColombia's cement division. Our continuingefforts in this regard -such as theimplementation of the Safety Based onBehavior and safety diagnosis and thecontinuation of the Safety, Order, andHousekeeping Plan at the cement,ready-mix concrete, and transportationoperations and offices- have produced theseoutstanding results.

In addition, we carried out our program tocertify concrete pump and ready-mix truckdrivers and conducted workshops for safebehavior and training for contractors. We alsoheld annual training for the emergencybrigades. Finally, we provided epidemiologicalcontrol exams to our employees topromote their health.

For the second time, the Caracolito, Cucuta,Santa Rosa, and Bucaramanga plantsobtained the HPR (Highly ProtectedRisk Property) certification.

ISO 14001

The ISO 14001 implementation process isnow 50% complete at the Caracolito cementplant. Our goal is to obtain this certificationby November 2001.

Training for Emergency Brigades.

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SAFETY AND HEALTH

The Bayano cement plant achieved anaccident rate in 2000 of less than 1%. This isthe result of the continuation of the Bayano2000 Safety Plan, begun in 1999. The Bayano2000 Safety Plan is derived from the IntegralSafety Plan, which involves training, detection,and resolution of unsafe conditions; highlightsthe training of different teams of the EmergencyBrigade about issues such as First Aid, FireControl, and Rescue; and reinforcestraining on ergonomic matters.

During 2000, more than 4,500 peoplebenefited from these and other actionsaddressed to the community.

In addition, as part of a SINAPROC Program(Civil Protection National System) in thecommunities, we supported the formation ofa volunteer brigadier corps for naturaldisasters.

We collaborated with the USAID in a studyto evaluate clean production centers indifferent industrial sectors. As part of thisinitiative, a voluntary inspection of the Bayanocement plant was executed in conjunctionwith the National Environmental Secretariat(ANAM).

AIR EMISSIONS CONTROL

Through an investment of US$54,000 in 2000to acquire two equipments for continuousparticle monitoring, we reached our goal tohave this kind of continuous monitoring in100% of the fixed sources of emissions incement plant 's product ion process.

We also modified the dust collection systemin the bulk cement discharge area to eliminate90% of this area's emissions. Now all of thefixed sources of particulate air emissions inthe production process are operating underproposed regulatory limits. This is an exampleof CEMEX Panama to become one of theindustry 's main promoters for theenvironmental conservation of the country.

Community health care.

In terms of occupational health, we launcheda vaccination campaign against tetanus andcampaigns to provide vision and hearingexaminations for all employees. We alsostarted the Hypertension Program withseminars on health and nutrition, amongothers. Meanwhile, we initiated the Drug FreeProgram with workshops for employees andtheir children in collaboration with thePanamanian White Cross.

ENVIRONMENTALCONSERVATION AND

CULTURE

Continuing our labor of previous years, weplanted 37,000 trees of native species, suchas teca, oak, and native fruit trees, andreforested 20 hectares of land surroundingthe cement plant. Similarly, to supportenvironmental culture, we donated 50 copiesof the book entitled Hotspots to thePanama Canal Museum.

COMMUNITY RELATIONSAND PARTICIPATION

WITH NGO'S

One of our significant actions in 2000 wassupporting the efforts of the Caimitillo HealthCenter, in the Calzada Larga sector, to launchvaccination campaigns and medical missions.In coordination with local authorities, we alsoconducted a garbage recollection and disposalcampaign in the plant's neighboringcommunities.

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SAFETY AND HEALTH

The Titan 2000 Safety Program continues toguide our efforts to prevent accidents; it hasas its motivational elements the monthly flagraising for and quarterly recognition of thebest performance team department. Othermotivational events were the Safety OlympicGames and the Accident PreventionPhotography Contest, both part of CEMEX'sSafety Month celebration in February 2000.

Also important has been our four-yearparticipation in the Quisqueya Green NationalPlan, which resulted in the plantation of 8,000trees in different zones covering anarea of more than 5 hectares.

To promote environmental culture we donatedthe book entitled Hotspots to the Loma QuitaEspuela Foundation, which will use theproceeds from the sale of the books toconserve this mountain.

AIR EMISSIONS CONTROL

During this year, we continue with our effortsto minimize air emissions. Due to theseactivities, Cementos Nacionales wasrecognized as the cement company with thebest environmental performance in theDominican Republic. Equally important is theinstallation in our plant of the largest verticalcement mill in the world and the incorporationof continuous particle monitoring in its stack.

WASTE MANAGEMENT

During 2000, we minimized the wastesgenerated in our installations by reusing themas alternative fuels in the productionprocesses. In the same manner, we reusedresiduals generated in other industries,achieving a reduction of 740,800 liters ofwaste oils that would have to be disposed ofby other, less environmentally friendlymethods. These actions also support theconservation of natural resources, thusdoubling their positive impact.

Employees and their children participate in reforestation activities.

COMMUNITY RELATIONSAND PARTICIPATION

WITH NGO'S

We continued to support solid wasterecollection activities in the communitiessurrounding our plants, including the donationof containers. We also sponsored educational,cultural, artistic, and sports activities toimprove the community's quality of life. Weestimate that these efforts benefitedcommunities having almost 50,000 persons.

Training in safety issues is a key factor. Thisyear we highlighted the implementation of theSAFESTART Program, which was developedto change human behavior to reduceaccidents, and the Titan Interactive TrainingProgram. In addition, the Red Cross helpedus to train employees in first aid andambulance driving. In the ready-mix concretearea, we started our Certification Program forconcrete pumps and ready-mix trucks drivers,which trains drivers with respect to safety &health and driving skills.To complement medical exams provided toall employees, we conducted other educationalactivities to conserve health and improveworking conditions.

ISO 14001

We continued implementing the ISO 14001standard in the Cementos Nacionales plant;our goal is to obtain certification in this plantby 2002.

ENVIRONMENTAL CULTUREAND CONSERVATION

CEMEX Dominican Republic's reforested 15hectares of the limestone quarry's exhaustedarea by planting more than 1,000 native trees.

These efforts support the government'sEndangered Plants Conservation Project.

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AIR EMISSIONS CONTROL

At the beginning of 2000, we conducted anenvironmental evaluation to identify immediateopportunities to improve our particle emissionscontrol systems. Our objective is to have allthe fixed sources of emissions operating withparticle emissions levels lower than themaximum limits established by the respectivecountry regulations.

irrigate green areas. We estimate that,together, both systems help us to save morethan 169,000 m3 of potable waterper year.

RELATIONS WITHTHE COMMUNITY

During 2000, approximately 100 people weredirectly benefited by our actions for thecommunity. Highlights include improvementsmade -with Human Resources' support- tothe quality of life of the Ciudadela residentialarea, where cement plant workers live. Wealso established an open communicationschannel with the community to addressconcerns about our production processesand environmental protection.

ENVIRONMENTALCONSERVATION

During 2000, we restored the soil and planted1,800 native trees in the exhausted areas ofthe limestone quarry. This resulted in areforestation of approximately 2 hectares ofland.

WATER SAVINGS

The current treatment system for coolingwastewater conserved 154,500 m3 of potablewater. Also, we built a treatment plant forsanitary wastewater generated in the offices,the cement plant, and the residential area ofthe cement plant named the Ciudadela. Thetreated wastewater from this system is reusedin the different cement production processesand will be used to

Reforestation in the neighboring communities.

SAFETY AND HEALTH

During the second half of 2000 we achieveda 50% reduction in the accident rate comparedwith the first half of the year. This is in largepart a consequence of the permits for workrisk prevention and the Safety Program forcontractors. Also, safety seminars and safetyinstructions were given to the contractors.

We also made important improvements tothe fire protection systems at the Cementosdel Pacifico plant, and the electrical substation.In addition, the Colorado Plant obtained theHPR (highly Protected Risk Property)certification.

Our efforts to improve occupational healthincluded the initiation of clinical exams forour employees and a vaccination campaignagainst measles, rubella, tetanus, andhepatitis. We also implemented a weightcontrol pilot program that included a nutritionalplan for employees and tests to detect highcholesterol levels.

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TRADINGJose Ignacio GuerraAv. Constitucion 444 Pte.Piso 3º SurMonterrey, N.L., Mexico 64000Phone. (528) 328 3810, 328 3000, Ext.3810Fax. (528) 328 3145e-mail: [email protected]

UNITED STATESEnvironmentDaniel Heintz1200 Smith Street, Suite 2400Houston, Texas, USA 77002Phone. (713) 653-6956Fax. (713) 653-8567e-mail: [email protected]

Health and SafetyKevin Keegan1200 Smith Street, Suite 2500Houston, Texas, USA 77002Phone. (713) 653 8531Fax. (713) 653 6815e-mail: [email protected]

VENEZUELAEnvironmentNinoska CilentoCarretera Guanta-Cumana Km. 7Sector PertigaleteMunicipio Guanta, Estado Anzoategui,VenezuelaPhone. (58 281) 264 7105, 264 7102Fax. (58281) 264 7103e-mail: [email protected]

Health and SafetyEnzo GonzalezCarretera Guanta-Cumana Km. 7Sector PertigaleteMunicipio Guanta, Estado Anzoategui,VenezuelaPhone. (58281) 264 7033, 264 7034Fax. (58281) 264 7032e-mail: [email protected]

CORPORATE EHSEnvironment,Health and SafetyMiguel A. GonzalezAv. Independencia 901-A Ote.Col. CementosMonterrey, N.L., Mexico 64520Phone. (528) 305 1882, 305 1802Fax. (528) 351 8350e-mail: [email protected]

MEXICOEnvironmentLuis Carranza GarciaAv. Independencia 1150 Ote.Col. CementosMonterrey, N.L., Mexico 64520Phone. (528) 305 1689Fax. (528) 305 1636e-mail: [email protected]

Health and SafetyRaul Rodriguez PonceAv. Isidro Fabela Norte 1534Col. IndustrialToluca, Edo. de Mexico, MexicoPhone. (5272) 79 6034Fax. (5272) 79 6000, 79 6069e-mail: [email protected]

PANAMAEnvironment,Health and SafetyJohn SinclairEdificio Plaza Panama Calle 50, Piso 28Panama, Republica de PanamaPhone. (507) 278 8700, 278 8933Fax. (507) 278 8935e-mail: [email protected]

PHILIPPINESEnvironmentCelestino Garces De Leon, Jr.25th Floor, Petron Mega Plaza Building358 Sen. Gil Puyat AvenueMakati City, Philippines 1200Phone. (632) 849 3667Fax. (632) 849 3679, 650 4145e-mail: [email protected]

Health and SafetyFernando Mayor MagnoSitio Tagbac, San JoseAntipolo City, PhilippinesPhone. (632) 630 6267Fax. (632) 630 6267e-mail: [email protected]

SPAINEnvironmentJavier MerlePaseo de la Habana 15-1aMadrid, España 28036Phone. (3491) 4326207Fax. (3491) 4326187e-mail: [email protected]

Health and SafetyPedro Javier LapeñaHernandez de Tejada 1Madrid, España 28027Phone. (3491) 377 9455Fax. (3491) 377 9300e-mail: [email protected]

COLOMBIAEnvironmentMiguel Angel Cortes DiazPlanta CaracolitoKilometro 3.5 Via Buenos Aires PayandeIbague-Departamento del Tolima, ColombiaPhone. (578) 2642814, Ext. 44491Fax. (578) 2649111, Ext. 44491e-mail: [email protected]

Health and SafetyGabriel Martinez OrtegaAutopista Medellin 66A-48Santa Fe de Bogota, ColombiaPhone. (571) 632 1156, 634 0130, Ext. 1156Fax. (571) 634 0333, 634 0133, Ext. 1156e-mail: [email protected]

CORPORATE COMMUNICATIONGregorio MartinezAv. Gomez Morin 350, Piso 7o.Garza Garcia, N.L., Mexico 66265Phone. (528) 152 2744, 152 2700, Ext. 2744Fax. (528) 152 2749e-mail: [email protected]

CORPORATE HUMAN RESOURCESSergio Serrano VelazquezAv. Constitucion 444 Pte.Monterrey, N.L., Mexico 64000Phone. (528) 328 3387Fax. (528) 328 3812e-mail: [email protected]

CORPORATE RISK MANAGEMENTRaul E. PuenteAv. Constitucion 444 Pte.Piso 5º Nte.Monterrey, N.L., Mexico 64000Phone. (528) 328 3102Fax. (528) 328 3186e-mail: [email protected]

CORPORATE SECURITYAntonio Gaona RoseteAv. Constitucion 444 Pte.Monterrey, NL, Mexico 64000Phone. (528) 328 3551Fax. (528) 328 3186email: [email protected]

COSTA RICAEnvironmentRoberto Arriaga OmacellCementos del Pacifico, S.A.Colorado de Abangares, GuanacasteSan Jose, Costa Rica 6558-1000Phone. (506) 678 0215, Ext. 1409Fax. (506) 678 0033e-mail: [email protected]

Health and SafetyAmed Muñoz LoriaCementos del Pacifico, S.A.Guatuso de Patarra, DesamparadosSan Jose, Costa Rica 6558-1000Phone. (506) 678 0215, Ext. 1047Fax. (506) 678 0033e-mail: [email protected]

DOMINICAN REPUBLICEnvironment,Health and SafetyYuri Alberto Duran RodriguezCarretera Mella Km 10San Pedro MacorisSanto Domingo, Republica DominicanaPhone. (809) 529 3355, Ext. 4031Fax. (809) 529 9107e-mail: [email protected]

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