Monterrey, Mexico-based Cemex S.A.B. de C.V. was quick to respond to Venezuelan President Hugo Chavez's April 3 order to nationalize his nation's cement industry in an effort to stop businesses from exporting raw materials required to help tackle the country's housing shortage. No time line was given for the process, although Chavez indicated the nationalization would happen soon.

In a televised address to the nation, Chavez, who has been facing criticism for failing to follow through on promises of new housing and other building projects, said the cement companies operating in Venezuela (which also includes France's Lafarge SA and Switzerland's Holcim Ltd.) will receive fair compensation during the takeover process. Also promising to modernize the cement plants as part of the process, Chavez made this announcement on the heals of similar 2007 actions in which he nationalized the country's natural gas and oil, electricity, and telecommunications industries in the interest of pushing Venezuela toward “21st century socialism.” In the past, he has voiced his displeasure at the high cost of construction materials and threatened to seize control of companies failing to provide low-cost cement for local markets.

In a statement issued on its website, Cemex — the largest supplier of cement and ready mixed in Venezuela — announced that since Chavez's announcement, representatives of the cement industry had met with various ministers, including Energy and Oil Minister Rafael Ramirez, who informed them about the decision “to control the cement industry through a scheme in which the government would have at least a 60% stake with operative and administrative control.” The statement went on to say that Ramirez explained that other options may be considered during a negotiation period, and that it is the government's intention to negotiate with each of the cement companies by organizing teams to initiate conversations with the government.

Cemex said it is willing to engage in dialogue with the authorities to find a solution, and that during the negotiation period, the company will continue to operate normally and look out for the interests of its employees.

Cemex currently operates three cement plants in Venezuela, representing a capacity of 4.6 mtpy. The company also runs 33 ready mixed facilities, seven aggregate quarries, 13 land distribution centers, and four marine terminals. Roughly 70% of Venezuela's cement is sold in bags, with the remaining 30% sold either through ready mixed operations or directly to contractors in bulk.

Holcim operates two cement plants in Venezuela with a capacity of approximately 2.4 million mtpy, while Lafarge owns two plants producing 1.5 million mtpy.

In the face of housing, building and infrastructure demand tied to projected U.S. population growth of 20% by 2030, a new PCA award program will honor government leaders who advance sustainable development in their communities through the use of concrete and cement-based products. “Few, if any, construction materials offer concrete's wide range of sustainable and environmental benefits,” says PCA President/CEO Brian McCarthy. “This award will recognize government officials who share our passion for green construction and recognize concrete's unrivaled benefits in terms of energy efficiency, durability, and ability to be recycled.”

The association invites nominations in the annual program's four categories from across the concrete industry. The Leadership in Sustainability Policy Award honors public officials who advance policies promoting sustainable development by advocating the use of concrete and cement-based products in their communities. Three other categories recognize officials who utilize cement or cement-based products to achieve sustainable goals in Homes and Residential Building, Non-Residential Building, and Infrastructure projects. Building construction and activities between January 2006 and December 2007 are eligible for the inaugural competition, with an entry deadline of May 30, 2008. Nomination forms are available at www.cement.org/SustainableLeadership.

Total shipments of portland and blended cement in the United States and Puerto Rico were about 10.9 million mt in October 2007, according to the U.S. Geological Survey. This was 3.9% lower compared with shipments for October 2006. Shipments year-to-date totaled about 97.0 million mt, down by 9.0% compared with those of the same period in 2006.

Clinker production totaled 7.5 million mt in October 2007, about 4.8% lower compared with 2006. Cumulative shipments for 2007 through October were 72.6 million mt, down 3.0% from 2006.

Masonry cement shipments were about 369,000 mt in October 2007 were 19.8% lower compared with shipments in October 2006. Year-to-date shipments were 3.76 million mt, down 19.6% from the same period in 2006.

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