Cemex introduces 7-point plan in Spain

Cemex Spain launches new strategy

Cemex has introduced its ‘Plan Horizonte’ in Spain, in a bid to adapt to the current state of the country’s cement market. Faced with falling demand and increased production costs, the company’s 7-point plan aims to improve operating efficiency, lower costs and enhance its market position in order to guarantee its future activities in the country.

Cement consumption continues to fall

Cement consumption in Spain has declined since 2007, when levels reached a peak of 56 million t. This year, annual consumption is expected to fall to less than 14 million t and the situation is expected to deteriorate even further in 2013. According to Oficemen, this year’s cement consumption figure could be the worst since the 1960s. In January – August 2012, cement consumption registered a 34.25% y/y decline, plummeting to approximately 9.56 million t. In August alone, cement production fell by 28.12% y/y, with consumption down 33.63%.

‘Plan Horizonte’

Cemex will implement the following measures as part of its new strategy in the country:

• Market positioning: reinforce its presence in the most relevant markets and actively look for new business.
• New operating model in plants: complete operations will be carried out in its Morata de Jalón plant (Zaragoza), Lloseta plant (Baleares) and Alicante plant. Its Castillejo (Toledo), San Feliú (Barcelona) and Alcanar (Tarragona) sites will operate as grinding facilities, while the Buñol plant (Valencia) will operate intermittently.
• Personnel changes: the new operating model involves a reduction in its workforce, a measure that will affect 370 posts. Worker representatives have already been informed of this measure.
• Cost saving policies: although distribution, sales and business costs have been reduced by more than 50% over the last 5 years, further measures will be taken to ensure that the company remains competitive. Exports will continue to remain a priority.
• Concentrating on the business: by reorganising its structure and supporting its services as a global provider through administrative procedures, Cemex will be able to concentrate on producing and marketing its products, as well as satisfying the needs of its clients.
• New products: Cemex will continue to develop its product offerings to make them increasingly efficient, sustainable and profitable.

Enhanced production: production with regards to excellence and competitiveness will continue to be the company’s priority. It plans to optimise energy efficiency in order to reduce costs and increase its contribution to sustainability.

Adapted from press release by Louise Fordham.

Read the article online at: https://www.worldcement.com/europe-cis/06112012/cement_spain_cemex_new_strategy_plan_horizonte_728/