|
MEXICO CITY (AP) -- Mexico's Cemex, one of the world's top cement makers, will cut overall costs by 10 percent, including a reduction of its work force, following its June takeover of Australia's Rinker Group Ltd., a Cemex spokesman said Wednesday. Cemex did not say how many of the company's 70,000 employees will be cut worldwide, but the spokesman, who was not permitted to give his name, said "much less" than 10 percent of the work force would be eliminated. A company statement noted that "savings opportunities imply more than just the withdrawal of personnel." Cemex, the world's third-largest cement producer, completed its acquisition of Rinker for $15.3 billion this summer, a move that raised the company's net debt to $19.2 billion as of the end of September. Rinker had obtained about 80 percent of its income from the U.S., where housing construction has been hit by falling home values and a subprime mortgage loan crisis this year. Cemex stressed that its acquisition of Rinker "strengthens our position throughout the value chain" and will allow for gains in savings and revenue.
|