As a means to ensure the safe disposal of oil wastes generated in the Venezuela plants and in other industrial processes, we have requested a government permit to use waste oil as an alternative fuel. In 2002, we used approximately 1,135 m3 of waste oil in two of our plants. In some cases, the use of the fuel was achieved by modifying existing equipment.

Because the cement industry relies on quarries
to provide raw material, responsible companies find ways to restore these areas. CEMEX's plant in the Dominican Republic has formed a partnership with that country's National Botanical Garden to accomplish this objective.

Under a new agreement, the National Botanical Garden will reforest the quarries of CEMEX's Dominican operations using plants endemic to the region. CEMEX will provide funding for a nursery for the production of these plants, some of which will be used on school grounds and other areas in the nearby communities of San Pedro de Macoris.

In our industry, we depend upon natural resources to run a successful business. Cement is the key component of concrete, and we supply both for the construction of roads, bridges, schools, hospitals, homes and office buildings around the world. In fact, concrete is the most-used construction material in the world, and that gives us a special responsibility to uphold sound social and environmental practices.

CEMEX's Victorville, California plant completed an expansion project in 2002, making it the largest cement production facility in the United States. As part of the expansion, the plant was able to lower allowable air emissions into the environment by 84 metric tons per year of particulate matter and 3,270 metric tons per year of gaseous emissions.

The US$190 million investment achieves the goal of reducing air emissions, while simultaneously increasing production. The final design selected meets the best available control technology for reducing air emissions. Also, state-of-the-art combustion controls were chosen to reduce Nitrogen Oxides (NOx), Carbon Monoxide (CO), Sulfur Dioxide (SO2) and Volatile Organic Compound (VOC) emissions.

This expansion project, with its associated allowable emissions reductions, was recently honored with an Exemplar Award from the Mojave Desert Air Quality Management District, which recognizes the plant as
an "exemplary business that has made an outstanding contribution to the prevention and/or control of air pollution within the local community."

In some areas of the world where CEMEX operates, people in local communities have a real need for medical assistance. In the Philippines, our SOLID and APO Cement Plants undertook many projects in 2002 to help their neighbors in this important area. For example, both plants increased the frequency of medical missions for the communities from quarterly to monthly.
The missions provide free medical diagnoses by doctors, and free medical supplies.

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