Overview
As the top cement and ready-mix concrete manufacturer in Mexico, we have nationwide market coverage. Modern plants on the country's Atlantic and Pacific coasts enable us to take advantage of low-cost marine transportation to the US, Central and South American, and Caribbean markets.

User Base
Cement is primarily a retail product in Mexico. Retail sales of cement through distributors account for approximately 66 percent of Mexico's demand. Because individuals account for as much as 45 percent of Mexico's total demand, strong brand identification and an extensive distribution network are necessary for success in the market. CEMEX owns the registered trademarks for Mexico's most popular cement brands such as Cemento Monterrey, Cemento Tolteca, and Cemento Anáhuac.

Value Initiatives
We began construction of a new kiln at our Yaqui plant in northwest Mexico to support strong regional demand resulting from the continued growth of the housing market. The new kiln, which we expect to complete in 2008, will increase the plant's production capacity to approximately 3.0 million tons of cement per year.

Also, we expect to complete the construction of a new kiln at our Tepeaca cement plant in Puebla, Mexico, in 2009. The new kiln will increase the total production capacity of our Tepeaca plant to 7.6 million metric tons of cement per year.

In 2001 we launched the Construrama program, a registered brand name for construction material stores. Through the Construrama program, we offer an exclusive group of our Mexican distributors the opportunity to sell a variety of products under the Construrama brand name, a concept that includes the standardization of stores, image, marketing, products, and services. By the end of 2006, 730 independent concessionaries with close to 2,100 stores were integrated into the Construrama program throughout Mexico.