Cemex Sab - CX STOCK NEWS

Cemex announced a significant leadership transition as CEO Fernando A. González will retire after more than 35 years with the company. The Board of Directors has appointed Jaime Muguiro, current President of Cemex USA, as the new CEO, effective April 1, 2025.

Under González's decade-long leadership as CEO, Cemex has achieved notable success, becoming an industry leader in sustainability, innovation, and digitalization. The company has regained its investment-grade ratings and is positioned for continued growth.

Muguiro, who joined Cemex in 1996, brings extensive experience from various executive positions within the company, including Strategic Planning, Business Development, Ready-Mix Concrete, Aggregates, and Human Resources. He has led several regional operations and served as CEO of Cemex Latam Holdings.

Cemex has been awarded the Net-Zero Industries Award at COP29 for developing a revolutionary clinker decarbonization process using concentrated solar power. The breakthrough technology, developed in collaboration with cleantech company Synhelion, enables solar-powered clinker production, a key component in cement manufacturing. The partnership, which began in 2019, achieved its first successful solar clinker production in 2022 through a small-scale pilot, followed by continuous production capabilities in 2023. The companies are now progressing toward developing a solar-driven, industrial-scale pilot cement plant.

Cemex and Linde have been selected to receive €157 million in funding from the EU Innovation Fund for a pioneering CO2 capture project at Cemex's Rüdersdorf Cement Plant in Germany. The project aims to capture 1.3 million metric tons of CO2 per year, ultimately decarbonizing the site by 2030.

Linde's HISORP® CO2 capture technology will be deployed in a cryogenic-adsorptive process that captures CO2 from the exhaust gas. The liquid CO2 will be transported by rail to an intermediate CO2 Hub and shipped to an offshore storage site in the North Sea. The project's environmental credentials will be enhanced by regional green electricity generation and water recycling.

This initiative is part of Cemex's Future in Action sustainability program, which aims to make the company a net-zero CO2 company by 2050.

Cemex has been included in Fortune's 2024 Change the World list, ranking 24th out of 52 companies. This marks the fourth time Cemex has received this recognition, which highlights businesses making positive social impacts through their core strategies. Fortune acknowledged Cemex's work with VeryNile, an initiative in Egypt that cleans the Nile River and develops sustainable solutions for collected waste.

The VeryNile project, supported by Egypt's Ministry of the Environment, upcycles recovered plastics and uses non-recyclable waste as alternative fuel in Cemex's Assiut cement plant. This initiative has created 150 alternative jobs for local fishermen and women affected by river contamination. Cemex's CEO, Fernando A. González, emphasized the company's sustainable business model that aligns environmental conservation with social empowerment.

Cemex's social impact strategy focuses on supporting local economies, building resilient communities, and empowering people through skills development. The Fortune Change the World list evaluates companies based on measurable social impact, business results, and innovation degree.

Cemex has acquired a majority stake in RC-Baustoffe Berlin GmbH & Co. KG, a recycling company part of the Heim Group, to expand its Regenera circularity business. The Berlin-based facility can process up to 400,000 tons of construction, demolition, and excavation materials (CDEM) annually, which will be repurposed into aggregates for concrete production. This acquisition aligns with Cemex's commitment to circularity and promoting a more circular economy.

The facility also operates Germany's first plant to permanently store biogenic CO₂ in recycled mineral waste. In 2023, Regenera recovered over 9 million tons of CDEM and aims to recover 14 million tons annually by 2030. Cemex recently partnered with the Ellen MacArthur Foundation to further leverage the cement value chain's potential in circularity.

Cemex has signed a Network Partnership agreement with the Ellen MacArthur Foundation to accelerate circular economy efforts in the built environment. This partnership aims to integrate and scale circular economy principles into the cement supply chain through Cemex's Regenera business. The collaboration will leverage science-based research, advocacy, and coalition-building initiatives to drive circularity in the building materials industry.

Key points:

• Cemex's Regenera recovered over 9 million tons of construction and demolition waste in 2023, a 5% increase from the previous year.
• The built environment sector accounts for approximately 37% of global CO2 emissions.
• Incorporating circular economy principles in the built environment can reduce global CO2 emissions from building materials by 38% by 2050.
• This partnership is part of Cemex's Future in Action program, aiming to achieve sustainable excellence and become a net-zero CO2 company by 2050.

Cemex collaborates with the Mission Possible Partnership and the Bezos Earth Fund to analyze decarbonization levers at its Balcones cement plant in Texas. The partnership aims to accelerate Cemex's commitment to achieving net-zero CO2 emissions by 2050 by exploring various technological pathways such as alternative fuels, lower-carbon materials, carbon capture and storage, and the utilization of captured carbon for synthetic fuels or construction materials.

CEO Fernando A. González highlights the importance of leveraging scalable technologies to meet ambitious decarbonization goals. The partnership focuses on addressing the high heat required in cement production by exploring substitutes for fossil fuels, including waste, renewable gas, biomass, hydrogen, and electrification of kilns. MPP drives industrial decarbonization in heavy-emitting sectors like cement and concrete, collaborating with partners to enable deep decarbonization projects at a commercial scale.

This collaboration aligns with Cemex's Future in Action program, which aims to achieve sustainable excellence through climate action, circularity, and resource management, with the goal of becoming a net zero CO2 company by 2050. Cemex has made significant progress in decarbonization, reducing specific CO2 emissions by 13% and 12% in Scope 1 and 2, respectively, since 2020.

Cemex has been recognized as the industry's top-scoring company in the World Benchmarking Alliance's 2024 Climate and Energy Benchmark, showcasing its commitment to transitioning to a lower-carbon future and aiming to be a net-zero CO2 company by 2050. The company achieved the highest score in the cement industry ranking, reflecting its dedication to climate action and social impact.

Cemex has been upgraded to investment grade by Fitch Ratings, achieving BBB- status. This follows an earlier upgrade by S&P Global Ratings. The CEO sees this as a significant milestone, highlighting the company's strategic execution and cost optimization to enhance financial flexibility. Recent developments include the divestment of operations in the Philippines and a successful bank refinancing.