Mexico's Cemex, S.A.B. de C.V. announced that it intends to begin the permitting process for the construction of a 1.9 million-ton cement facility near Seligman, Ariz. Cemex will invest approximately $400 million over five years in the Seligman Crossing plant, which is expected to begin operations by 2012. The state-of-the-art facility will manufacture cement to serve the growing needs of Arizona, including the Phoenix metropolitan area.

“By utilizing efficient energy sources, limited amounts of water, and world-class manufacturing and environmental technologies, the Seligman Crossing project will provide much needed building materials to the state of Arizona efficiently and cost-effectively, while also creating jobs and infusing payroll and tax dollars into the region,” said Gilberto Perez, President of Houston-based Cemex USA. “Cemex is committed to balancing the demand for development in the region with environmental sustainability to ensure that it provides for the growing needs of the expanding residential community in the Phoenix area in a responsible, mutually beneficial way.”

The historical shortage of building materials in Arizona and the southwestern United States, coupled with demographic trends that project continued, robust population growth throughout the region, reinforces the need for the construction of the Cemex Seligman Crossing plant. The plant will generate significant employment opportunities for northern Arizona, both during the construction and operational phases of the project and will also provide a considerable tax base for the support of local schools, services and public infrastructure.

LEHIGH TO MODERNIZE, EXPAND MITCHELL, IND., OPERATION

Allentown, Pa.-based Lehigh Cement Co., a subsidiary of the German building materials company, HeidelbergCement, announced plans to expand and upgrade its cement manufacturing plant in Mitchell, Ind. The modernized plant will use the latest technology and equipment to significantly reduce energy usage, fuel consumption and emissions per ton of cement produced. Lehigh Cement will work closely and cooperatively with the responsible government and permitting agencies to meet air quality standards and other requirements. The company has served customers in Indiana, Illinois, Ohio, Kentuck, and the entire Midwest with cement from the Mitchell plant location since 1902.

“We have built new plants and expanded existing facilities from the United States to Turkey and from Canada to China. We have the technical ability and experience to manufacture cement in a manner which is environmentally sustainable, while maintaining the highest quality standards,” said soon-to be Lehigh Cement President and CEO, Albert Scheuer, who will succeed Helmut Erhard as North American CEO in January 2008.

Daniel Harrington, President of Lehigh Cement's North Division, emphasized the need for close cooperation between Lehigh Cement and local and state officials, customers, employees and the community. “We have played a key role in the community for generations,” stated Mr. Harrington. “We look forward to open dialogue with the state of Indiana and the city of Mitchell as we move through the permitting process.”

“Southern Indiana continues to be a leader in manufacturing,” said state Lt. Governor Becky Skillman. “This project in my home county proves we can bring about economic growth in Indiana while continuing to be good stewards of our environment.”

CEMENT TOTALS

Total shipments of portland and blended cement in the United States and Puerto Rico were about 11.4 million mt in August 2007, according to the U.S. Geological Survey. This was 7.6% lower compared with shipments for August 2006. Shipments year-to-date totaled about 76.3 million mt, down by 9.6% compared with those of the same period in 2006.

Clinker production totaled 7.8 million mt in August 2007, essentially unchanged compared with 2006. Cumulative shipments for 2007 through August was 57.7 million mt, down 2.4% from 2006.

Masonry cement shipments were about 406,000 mt in August 2007 were 20.6% lower compared with shipments in August 2006. Year-to-date shipments were 3.05 million mt, down 19.3% from the same period in 2006.

AUGUST 2007