, and - cemex

14
, and You can find this report and additional information about CEMEX by visiting our Website: www.cemex.com Please send comments, questions, or requests for additional copies of this report, in Spanish or in English, to: Corporate EHS Av. Independencia 901-A Ote. Col. Cementos Monterrey, N.L., México 64520 Phone: 5281.8305.1310 Fax: 5281.8351.8350 Email: [email protected] Corporate Communications Av. Gómez Morín 350. Piso 7o. Garza García, N.L., México 66265 Phone: 5281.8152.2744 Fax: 5281.8152.2749 Email: [email protected] 2 0 0 2 P R O G R E S S R E P O R T

Upload: others

Post on 08-Feb-2022

7 views

Category:

Documents


0 download

TRANSCRIPT

, and

You can find this report and additional information about CEMEX by visiting our Website:

www.cemex.com

Please send comments, questions, or requests for additionalcopies of this report, in Spanish or in English, to:

Corporate EHSAv. Independencia 901-A Ote. Col. Cementos Monterrey, N.L., México 64520Phone: 5281.8305.1310Fax: 5281.8351.8350Email: [email protected]

Corporate CommunicationsAv. Gómez Morín 350. Piso 7o.Garza García, N.L., México 66265Phone: 5281.8152.2744Fax: 5281.8152.2749Email: [email protected]

2 0 0 2 P R O G R E S S R E P O R T

49390-ENG-CVR 4/14/03 7:31 PM Page 1

COLOMBIAEnvironment Miguel Angel Cortés DiazPlanta CaracolitoKm 3.5 Via Buenos Aires PayandeIbagué – Departamento del Tolima,ColombiaPhone: 578.264.2814, Ext. 49097Email:[email protected]

Health and SafetyGabriel Martínez Ortega Planta CaracolitoKm 3.5 Via Buenos Aires PayandeIbagué – Departamento del Tolima,ColombiaPhone: 578.264.2814, Ext. 49049Email:[email protected]

CORPORATECommunicationsGregorio MartínezAv. Gómez Morín 350Piso 7o C.P. 66265Garza García, N.L., MéxicoPhone: 5281.8152.2744Email:[email protected]

Environment,Health and SafetyMiguel A. GonzálezAv. Independencia 901-A Ote.Col. Cementos Monterrey, N.L., México 64520Phone: 5281.8305.1882, 8305.1802Email:[email protected]

Human ResourcesSergio Serrano VelázquezAv. Constitución 444 Pte.Monterrey, N.L., México 64000Phone: 5281.8328.3387Email: [email protected]

Risk ManagementRené Alejandro Martínez Flores Av. Constitución 444 Pte., Piso 5o.Monterrey, N.L., México 64000Phone: 5281.8328.3121Email:[email protected]

CORPORATE (continued)

Security Ignacio de la Garza PaezAv. Constitución 444 Pte.Monterrey, NL, México 64000Phone: 5281.8328.3101Email: [email protected]

TradingJosé Ignacio GuerraAv. Constitución 444 Pte. Piso 3o Sur Monterrey, N.L., México 64000Phone: 5281.8328.3810Email: [email protected]

COSTA RICAEnvironmentRoberto Arriaga OmacellColorado de Abangares, GuanacasteSan José, Costa Rica 6558-1000Phone: 506.678.0215, Ext. 1409Email: [email protected]

Health and SafetyAmed Muñoz Loria Guatuso de Patarra, DesamparadosSan José, Costa Rica 6558-1000Phone: 506.678.0215, Ext. 1060Email: [email protected]

DOMINICAN REPUBLICEnvironment,Health and SafetyYuri Alberto Durán RodríguezCarretera Mella Km 10 San Pedro MacorisSanto Domingo, República DominicanaPhone: 809.529.3355, Ext. 4031Email: [email protected]

EGYPTEnvironment,Health and SafetyAbd-El Rahman Mohamed Hassan18 El Wadi RoadAssiut, Egypt Phone: + 2.088.424347

MEXICOEnvironment Luis Carranza GarcíaAv. Independencia 1150 Ote.Col. Cementos, Monterrey, N.L.,México 64520Phone: 5281.8305.1689Email: [email protected]

Health and SafetySalvador García MorenoAv. Independencia 901-A Ote.Col. Cementos Monterrey, N.L., México 64520Phone: [email protected]

NICARAGUAEnvironment Iván Martín Montenegro CastilloCemex San Rafael del Sur NicaraguaPhone: 505.266.2217Email:[email protected]

Health and SafetyLuis Manuel Gutiérrez CórdobaCemex San Rafael del SurNicaraguaPhone: 505.266.2217

PANAMAEnvironment,Health and SafetyJohn Sinclair Edificio Plaza Panamá Calle 50,Piso 28Panamá, República de PanamáPhone: 507.278.8700, 278.8933Email: [email protected]

PHILIPPINESEnvironment,Health and SafetyCelestino Garces De Leon, Jr.Technical Department25th Floor, Petron Mega Plaza358 Sen. Gil Puyat AvenueMakati City, Philippines 1200Phone: 632.849.3667Email:[email protected]

SPAINEnvironmentJavier MerlePaseo de la Habana 15 – 1aMadrid, España 28036Phone: 3491.432.6207Email: [email protected]

Health and SafetyPedro Javier Lapeña ReyHernández de Tejada, 128027 - Madrid - EspañaPhone: 34.91.377.9578Email: [email protected]

THAILANDHealth and SafetyJarin Suphiran48/ 1 M.5, Highway No. 21Na Phra Lan, Chalerm PhrakiatSaraburi Province 18240Phone: 66.036.21 8000

UNITED STATESEnvironmentDaniel Heintz1200 Smith Street, Suite 2400Houston,Texas, USA 77002Phone: 713.653.6956Email:[email protected]

Health and SafetyKevin Keegan1200 Smith Street, Suite 2500Houston,Texas, USA 77002Phone: 713.653.8531Email: [email protected]

VENEZUELAEnvironment Ninoska CilentoCarretera Guanta-Cumaná Km. 7,Sector PertigaleteMunicipio Guanta,Estado Anzoátegui VenezuelaPhone: 58281.264.7105, 264.7102Email:[email protected]

Health and SafetyEnzo GonzálezCarretera Guanta-Cumaná Km. 7,Sector PertigaleteMunicipio Guanta,Estado Anzoátegui VenezuelaPhone: 58281.264.7033, 264.7034Email: [email protected]

13

directory

CEMEX is a leading global producer and marketer ofcement and ready-mix products, with operations primarilyconcentrated in the world’s most dynamic cement marketsacross four continents. CEMEX combines a deep knowledgeof the local markets with its global network and informationtechnology systems to provide world-class products andservices to its customers, from individual homebuilders tolarge industrial contractors.

1 C H A I R M A N ’ S L E T T E R

2 - 3 S U S T A I N A B L E D E V E L O P M E N T

4 - 7 E N V I R O N M E N T & S O C I A L R E S P O N S I B I L I T Y

8 - 9 H E A L T H

1 0 - 1 1 S A F E T Y

1 2 G L O S S A R Y

1 3 D I R E C T O R Y

today

:Caracolito Plant, Colombia

y , Denmark-Sweden.

49390-ENG-CVR 4/14/03 7:31 PM Page 3

11

Throughout our company’s 97-year history, wehave recognized that using the earth’s resources as efficiently as possiblemakes good business sense, a practice thatprovides economic advantages today and helpsassure Sustainable Development for tomorrow.Equally important, by treating our naturalresources and communities with respect, ourbusiness will grow in the most sociallyresponsible manner.

In a global cement industry that directly supports850,000 workers and their families, and operatesin more than 150 countries, we must work with our peers to carry out a vision of SustainableDevelopment for our industry. Thus CEMEX,along with nine other multinational cementcompanies, is adhering to an action planformulated through the Toward a SustainableCement Industry project with the Geneva-basedWorld Business Council for SustainableDevelopment.

This plan will complement our own efforts,which I personally oversee, in operationalefficiency, employee health and safety, andenvironmental outreach. Together, these actionsform the cornerstone of our Environment,Health and Safety (EHS) program.

In 2002, we augmented our comprehensive effortsto assure the health of our employees, as well astheir families and the communities in which weoperate. Accordingly, we remain committed toproviding a safe workplace at our facilities aroundthe world. Our safety performance continued toimprove in 2002, with a lost-time accident ratelower for the sixth straight year in both ourcement and concrete sectors. Fourteen of ourplants were accident-free, and almost 60% of our employees worked in business units with an accident rate of less than one percent.

This EHS Annual Report highlights that safety record as well as CEMEX’s achievementsin health, and environmental and socialresponsibility in 2002 — global accomplishmentsbuilt upon years of progress.This continuity isextremely important to us, because the future of our company relies on the foundation ofsustainability we are building today.

One of the proudest moments of the year for me, and for CEMEX, was accepting the 2002World Environment Center Gold Medal forinternational corporate environmentalachievement.This award was possible thanks tothe commitment of thousands of CEMEXemployees around the world. Their dedicationand ingenuity have been, and will remain, the key to our environmental stewardship efforts.

Our employees today carry on a tradition that,in many ways, began with the company in 1906.CEMEX’s success — and the well-being offuture generations — has the promise of our 97-year-start on tomorrow.

Lorenzo H. ZambranoChairman of the Board and Chief Executive Officer

Lorenzo H. Zambrano

a 97-year start on tomorrow

49390-ENG-TXT 4/14/03 6:48 PM Page 1

22

Given our clear dependence upon naturalresources, companies in the cement industryare working together to embrace the conceptsand principles of Sustainable Development.To meet the needs of people living todaywithout compromising the ability of futuregenerations to meet their own, SustainableDevelopment requires a long-term vision ofindustrial progress, preserving the foundationsupon which human quality of life depends:respect for basic human needs and local andglobal ecosystems.

CEMEX is one of ten multinational cement companies currently participating in a Cement Sustainability Initiative incoordination with the World BusinessCouncil for Sustainable Development(WBCSD). The initiative is based on theresults of the Toward a Sustainable CementIndustry study commissioned with theWBCSD. Our own efforts to achieve asustainable future are being continuedconcurrently through the CEMEXEcoefficiency Program.

Companies in the cement industry are

working together to embrace the concepts

and principles of Sustainable Development.Six Key AreasThe ten initial participating

companies in the Cement

Sustainability Initiative have

identified six key areas where we

believe a significant contribution

can be made over the next five

years toward achieving a more

sustainable society:

>Climate Protection

>Fuels and Raw Materials

>Employee Health and Safety

>Emissions Reductions

> Local Impact

> Internal Business Processes

meeting the needs of today without compromising tomorrow

y ,Venezuela.

49390-ENG-TXT 4/14/03 6:48 PM Page 2

33

Agenda for Action The ten initial participating companies in theCement Sustainability Initiative developed anagenda for action that includes making moreefficient use of natural resources and energy,meeting the expectations of stakeholders,reducing environmental impact with product and service innovations, and cooperating withother industries.

Areas of Emphasis To begin implementing the agenda for action,the companies have identified six key areas wherewe believe the Cement Sustainability Initiativecan make a significant contribution over the nextfive years toward achieving a more sustainablesociety. These include Climate Protection,Fuels and Raw Materials, Employee Health and Safety, Emissions Reductions, Local Impact,and Internal Business Processes.

Third-Party Strategy Early in our process, the participating companiesagreed on a key principle: the industry cannotwork in isolation on these important issues.Partnership with relevant third parties will be critical to success, groups such as tradeassociations, non-governmental organizations,governmental agencies and representatives,and other cement companies not currently part of the initiative.

CEMEX and Ecoefficiency At CEMEX, we define ecoefficiency as efforts to optimize energy and raw material efficiency to produce an economic and ecological benefitderived from a reduction of environmentalimpact.

The CEMEX Ecoefficiency Program waslaunched in 1994. The six ecoefficiency actionswe established at that time are consistent withthe Cement Sustainability Initiative’s Areas of Emphasis.

Our ecoefficiency plan pursues improvementthrough the following actions: developing andimplementing technology and innovativepractices for production processes and newcement plant design; selective mining techniquesand optimal quarry operations; recycling andreuse of materials; use of alternative raw materials;use of natural cementing raw materials; and useof alternative fuels.

Moving forward, The CEMEX EcoefficiencyProgram will continue to drive our efforts toalign with the Cement Sustainability Initiative.

y , Philippines.

>

We have reduced the amount ofthermal energy required per ton of clinker produced.

49390-ENG-TXT 4/14/03 6:48 PM Page 3

44

In our industry, we depend upon naturalresources to run a successful business. Cement is the key component of concrete, and we supplyboth for the construction of roads, bridges,schools, hospitals, homes and office buildingsaround the world. In fact, concrete is the most-used construction material in the world, and that gives us a special responsibility to upholdsound social and environmental practices.

demonstrating responsibility

y , Spain.

x

The new baghouse installed in our Victorville, California

plant features the best availablecontrol technology for reducing

air emissions.

Protecting the Environment CEMEX’s Victorville, California plantcompleted an expansion project in 2002, makingit the largest cement production facility in theUnited States. As part of the expansion, the plant was able to lower allowable air emissionsinto the environment by 84 metric tons per yearof particulate matter and 3,270 metric tons peryear of gaseous emissions.

The US$190 million investment achieves the goal of reducing air emissions, whilesimultaneously increasing production. The finaldesign selected meets the best available controltechnology for reducing air emissions. Also,state-of-the-art combustion controls were chosento reduce Nitrogen Oxides (NOx), CarbonMonoxide (CO), Sulfur Dioxide (SO2) andVolatile Organic Compound (VOC) emissions.

This expansion project, with its associatedallowable emissions reductions, was recentlyhonored with an Exemplar Award from theMojave Desert Air Quality Management District,which recognizes the plant as an “exemplarybusiness that has made an outstanding contributionto the prevention and/or control of air pollutionwithin the local community.”

49390-ENG-TXT 4/14/03 6:48 PM Page 4

We believestrongly in giving back to thecommunitiesin which weoperate.

55

Alternative Fuels in VenezuelaAs a means to ensure the safe disposal of oilwastes generated in the Venezuela plants and in other industrial processes, we have requested a government permit to use waste oil as analternative fuel. In 2002, we used approximately1,135 m3 of waste oil in two of our plants. Insome cases, the use of the fuel was achieved bymodifying existing equipment.

Reforestation:Giving Back to the Environment Because the cement industry relies on quarries to provide raw material, responsible companiesfind ways to restore these areas. CEMEX’s plant in the Dominican Republic has formed a partnership with that country’s NationalBotanical Garden to accomplish this objective.

Under a new agreement, the National BotanicalGarden will reforest the quarries of CEMEX’sDominican operations using plants endemic tothe region. CEMEX will provide funding for anursery for the production of these plants, someof which will be used on school grounds andother areas in the nearby communities of SanPedro de Macoris.

Medical Missions Provide HelpWhere Needed In some areas of the world where CEMEXoperates, people in local communities have a realneed for medical assistance. In the Philippines,our SOLID and APO Cement Plants undertookmany projects in 2002 to help their neighbors inthis important area. For example, both plantsincreased the frequency of medical missions forthe communities from quarterly to monthly.The missions provide free medical diagnoses by doctors, and free medical supplies.

The Ladies Clubs of the SOLID and APOPlants participated in an important health andeducation outreach effort through the Feed-a-Child Project, preparing and serving home-cooked meals and snacks for students incommunity schools and day-care centers.

y Hurricane victims waiting toreceive purified water from aCEMEX mobile unit.

Meeting a Challenge WhenDisaster Strikes Our ongoing environmental and social outreachactivities were supplemented by unplannedactions in 2002, and we were proud to seeCEMEX people react to emergency situationswith immediate help.

For instance, when Hurricane Isidore unleashedits force on Mexico’s Yucatan Peninsula,CEMEX’s Operations in Merida escaped withonly minor damage and no serious injuries topeople. The surrounding area did not fare as well. Fallen trees and flooding caused greatdamage to homes and other infrastructure.Many people were without food, safe drinkingwater, and electricity.

Almost immediately, CEMEX’s Operations in Merida took action to help its neighbors.CEMEX personnel helped to organize andimplement an effort to purchase and distributeenough food to feed 6,700 local families, and to help repair damaged homes.

The company also moved quickly to rent amobile water treatment plant to provide safedrinking water to the community. In less than a month, more than 120,000 liters weredistributed. In addition, the plant’s PreventiveMedicine unit provided information toemployees and other community residents onappropriate health practices in a region struck by a natural disaster.

Responding to a Crisis in Europe When the European Union ordered theextermination of diseased cows and other animals to protect public health, many countriesturned to the cement industry for help inincinerating in cement kilns the processedpowder-like waste product.

CEMEX joined this effort in 2002 by acceptingthe processed waste from the areas of Valenciana,Castilla-La Mancha, and Aragon. The CEMEXAlicante, Buñol and Castillejo plants did so overa six-month period and stayed well withinemissions guidelines established for the project by the Spanish environmental authorities, whilemaintaining operation efficiency and the qualityof our product.

49390-ENG-TXT 4/14/03 6:48 PM Page 5

66

A Graphic,Educational Look at Our World

Wilderness – Earth’s Last Wild Places is the tenthbook published by CEMEX in our ConservationBooks Program, and the third in a trilogy basedon the conservation strategy of ConservationInternational. Published in collaboration withAgrupación Sierra Madre and ConservationInternational, the book contains more than 500pages filled with breath-taking images of vast,untamed lands, rare glimpses of the people whoinhabit them, and the findings of more than 200international researchers who participated in atwo-year, global study of 37 identified wildernessareas that make up 54% of the world’s surface.The report includes an analysis of the biodiversityof these areas, a look at the human cultures thatinhabit them, a review of the threats theseregions face, and a discussion of variousconservation efforts to preserve them.

y

near CEMEX El Carmenconservation project that

appears in the Wilderness book.© Patricio Robles Gil/

Sierra Madre.

> The 10th in a series of conservation

books published by CEMEX.

helping protect our earth’s biodiversity

To date, CEMEX has donated more than 75,000 copies of different book editions toconservation NGOs, universities and institutionsthroughout the world. The book initiative has adouble objective: to be a useful fundraising toolfor NGOs to accomplish specific conservationprojects, and also to foster an environmentalculture among readers.

At CEMEX, we believe that people take care of those things they know. For this reason, wehave proudly worked for the past 10 years withorganizations devoted to conservation, such asConservation International (CI), the WorldConservation Union (IUCN) and AgrupaciónSierra Madre.

49390-ENG-TXT 4/15/03 7:53 PM Page 6

77

In Harmony with NatureAmong other things, our philosophy “InHarmony with Nature” reminds us that goodenvironmental standards must be practicedglobally, that environmental education andoutreach are clearly important, and that weshould take a leadership role in these and other endeavors.

El Carmen:Our Conservation Model The El Carmen Project, located in the heart ofthe Chihuahuan Desert in Mexico, is featured as one of the top five most important remainingwilderness areas in the world in Wilderness –Earth’s Last Wild Places. Through El Carmen,CEMEX offers a conservation model aimed at creating a long-term preservation plan forecosystems, species and biological corridors.

Several years ago, CEMEX began working with Agrupación Sierra Madre, a Mexico-based NGO, to facilitate the conservation of this 75,000 hectare ecosystem, most of which is part of the Maderas del Carmen Flora and Fauna Protection Area.

CEMEX is working on an international basiswith entities including government organizations,universities, non-government organizations, andan advisory board of conservationists, scientistsand local ranchers with experience in conservationand wildlife management.

The program has resulted in the reintroductionof desert bighorn sheep after a 60-year absence,the monitoring and managing of the black bearpopulation, and the foundation of a long-termmanagement plan to restore and recover an areathat is home to more than 500 plant species,400 bird species, 70 mammal species, and 50types of reptiles and amphibians.

y Project area highlighted in beige.

x © Patricio Robles Gil/Sierra Madre.

49390-ENG-TXT 4/14/03 6:48 PM Page 7

88

Safeguarding the health and well-being ofCEMEX people is a critically importantcomponent of our corporate EHS Policy.

We have two primary objectives: ensuringthat all employees have proper medicalattention, and promoting a culture of good health among all employees throughpreventive medicine programs.

Our initiatives in 2002 ranged from stresscontrol programs to a continuing series ofvaccinations and medical examinations.

a culture of good health

The health

and well-

being of

CEMEX

people is

critically

important.

49390-ENG-TXT 4/14/03 6:48 PM Page 8

99

Helping People Manage Stress Several years ago, CEMEX began a programcalled Excellence in Stress Management. It isdesigned to provide employees with informationand alternatives to manage and learn about stress.One of the tools offered is a diagnostic test toassess employee stress levels. The programcontinued to expand in 2002, as employees from Mexico and the Dominican Republicparticipated in 34 stress control seminars.

Taking Steps Toward Prevention At CEMEX, we believe that we cannot be a world leader in our industry without acomprehensive program to keep our peoplehealthy. Therefore, we concentrate on helping to prevent illnesses and diseases.

For example, medical checkups are a key part ofour health prevention and care programs, and thenumber of examinations has increased every yearsince the corporate health program began in 1994.

Given that we operate in more than 30 countriesaround the world, we place special emphasis onour Permanent Vaccination Campaign as a meansto good health. In 2002, we administered morethan 4,530 vaccine doses to CEMEX people.

The greatest number of vaccinations was forinfluenza, which we administered to CEMEXemployees as well as their families. Other vaccineswere given to prevent illnesses such as hepatitis Aand B, tetanus, rubella, and yellow fever.

We are also in the process of expanding a modelprogram to identify and evaluate certain indicatorsof an employee’s health; information which isthen correlated to that employee’s productivity.

For example, the program evaluates such factorsas an employee’s glucose, cholesterol, bloodpressure, body mass, and fitness level. Positivesteps may then be taken to provide informationto employees on how to improve these indicatorsthrough diet habits and exercise.

Applying Worldwide Health Standards We work to bring newly acquired companies up to CEMEX’s corporate EHS standards asquickly as possible. For example, since weacquired our facility in Egypt in 1999, acomprehensive program has been in place to ensure the health of employees.

In Egypt, periodic medical checkups areadministered to achieve early detection ofdiseases. When examinations reveal symptoms,the employees and affected members of theirfamilies are treated promptly.

The Egypt plant also regularly analyzes drinking water to be certain it is safe, and hasestablished aggressive programs for controllingand eradicating mosquitoes and other diseasetransmitting pests.

The company has also provided first-aid trainingfor its emergency-response staff through thefaculty at Assiut University.

Education Plays a Strategic Health Role We believe that education plays a key part, asevidenced in our Preventive Medicine Programin Panama, where education initiatives are usedto support other preventive measures such asannual medical examinations and a campaign of vaccinations against tetanus and rubella.

A series of pamphlets was distributed addressing the Quality of Life Program, andspecific educational information was provided on osteoporosis and various types of cancer.

Community Health Initiatives A CEMEX program in Mexico called PisoFirme (firm floor) combines promoting goodhealth with community outreach in a unique way.The company supplies antibacterial concrete tobe used as a substitute for ground floors in ruralhomes. This helps assure a clean environmentand lowers the risk of contamination and disease.More than 200,000 families have benefited fromthis program to date, and a similar initiative isnow under way in Colombia.

49390-ENG-TXT 4/14/03 6:48 PM Page 9

10

y A poster campaign helps

remind CEMEX employees why safety is important.

At CEMEX, safety is an integral part of ourcompany values. We promote safe behavior not just in the workplace and among our employees,but also in our employees’ families and homes,and in the surrounding communities.

The main components of our safety programinclude the Safety Manual, a Monitoring andTracking Electronic System, the CEMEX SafetyAward, and specific programs implemented in each country where we operate.

The monitoring and tracking system, for example,incorporates a database system called SISTER(System of Indicators of Safety in Effective and Real Time). It was developed by CEMEX and isunique in the cement industry, providing indicatorsand relevant safety facts online from every CEMEXplant. With this information, every director andmanager can see what is happening in otherCEMEX facilities, and can identify ways toimplement preventive measures in their own plants.By making well-informed decisions quickly, theyhelp improve safety in every sector of the company.

strivingfor continual improvement in safety

49390-ENG-TXT 4/14/03 6:48 PM Page 10

11

Preventing Accidents a Top Priority Our corporate safety performance in 2002 hasimproved for the sixth straight year, as shown bythe reduction of our accident rate from 1.74 in2001 to 1.65 in 2002, an improvement of 5%.

In 2002, more than half (57%) of all CEMEXpersonnel around the world were working inbusiness units where the accident rate is below1%. That represents a solid increase over 2001,when the figure was 38%. In addition, 14 cementplants and 19 concrete clusters completed 2002without a lost-time accident. However, theaccident severity rate, which is the averagenumber of lost workdays per accident, increasedfrom 29.6 in 2001 to 41.8 in 2002.

The third annual CEMEX Safety Award,presented in April 2002, recognized CEMEXplants for their outstanding safety performance.The Merida plant in Mexico received from our CEO the top honor for cement plants,and Cluster Transístmica in Panama took theaward for the concrete sector.

External Recognition for Safety The President of the Republic of Nicaraguapresented an award to CEMEX this year onbehalf of that country’s National Commission of Hygiene and Work Safety. The honor went to 30 Nicaraguan companies judged by theCommission to have demonstrated importantadvances in safety and occupational hygiene.Both private and public companies areconsidered for this high honor.

The CEMEX cement plant in Clinchfield,Georgia, received a special Safety ExcellenceAward given by the Portland Cement Association(PCA) for completing eight consecutive yearswithout a lost-time accident. PCA honored the Balcones Cement Plant in New Braunfels,Texas, with Safety Commendation Award forhaving no lost-time accidents in 2002.

Also in 2002, three new driver safety programswere initiated in the United States. Theseincluded the Smith Defensive Driving course,the CEMEX/ACE USA Insurance Companyready-mix health and safety training program,and the 1-800 Safety Alert driver-monitoringprogram.

We strive to

integrate safety

as a main part of

our company

values.x CEMEX’s lost-time accident rate continues to show improvement.

49390-ENG-TXT 4/14/03 6:48 PM Page 11

12

glossaryAccident Rate:

Result obtained by multiplying the number of lost-time accidentsrecorded in a certain period of time by 100, and dividing by the number of personnel in the same period.

Clinker:

An intermediate cement product. Limestone, clay and iron oxide aresintered in a kiln at around 1,450 degrees Celsius to produce clinker.One metric ton of clinker is approximately 1.1 metric tons of grayPortland cement.

Eccoefficiency:

Efforts to optimize energy and raw material efficiency to produce an economic and ecological benefit derived from a reduction ofenvironmental impact.

Ecosystem:

A system formed by the interaction of a community of organisms with their physical environment.

Emissions:

Materials that enter the air and water currents, noise, vibrations,light, heat, rays, and similar phenomena generated by productiveprocesses or installations and services.

Gray Portland Cement:

A hydraulic binding agent with a composition by weight of at least 95% clinker and 0-5% of a minor component (usually calcium sulfate).It can set and harden under water and, when mixed with aggregates and water, produces concrete or mortar.

Kilocalorie (kcal):

A calorie is a unit of energy defined as the amount of heat necessary to raise the temperature of a gram of water at normal pressure from14.5°C to 15.5°C. A kilocalorie is a thousand calories.

Metric Ton:

The equivalent of 1.102 short tons.

Sustainable Development:

A balanced development of economic growth, social equity, andsustainable use of natural resources, for the purpose of satisfying present needs without compromising those of future generations.

49390-ENG-TXT 4/14/03 6:48 PM Page 12