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CEMEX, S.A.B. de C.V. (NYSE: CX) (CEMEX) today informed the Mexican Stock Exchange about the measures CEMEX and CEMEXs direct and indirect
subsidiaries (the CEMEX Group) has taken or currently expects to take regarding the Coronaviruses (COVID-19) pandemic and of the risks and impacts of
COVID-19 on CEMEXs results of operations, liquidity and financial condition.
As of March 18, 2020, (i)
out of more than 40,000 employees that the CEMEX Group has worldwide, CEMEX had been formally informed that 2 CEMEX Group employees have tested positive for COVID-19, (ii) the CEMEX Groups cement
manufacturing and other operations remained operational, and (iii) the CEMEX Groups corporate offices had been working with the minimal number of employees reasonably possible as employees had been asked to work remotely.
The health and safety of its employees, contractors and suppliers is the CEMEX Groups top priority. CEMEX continues to monitor the development of COVID-19, leveraging information from relevant health organizations such as the World Health Organization, Centers for Disease Control, and others organizations as well as from authorities, such as the information
and recommendations being implemented by the governments of the countries, regions, cities or towns in which the CEMEX Group operates.
The CEMEX Group
has set-up local rapid response teams that remain activated throughout the CEMEX Groups operations and the CEMEX Group continues to implement preventive measures, accordingly. Some of the measures the
CEMEX Group has taken include restricting all work-related travel, arrangements so that employees can work remotely, and optimizing the amount of people we have working in our operating facilities and corporate offices. Among other initiatives, we
have also enhanced the CEMEX Groups internal information campaigns on recommended practices for health, hygiene, and social interaction, promoting social distancing. We also continue to cooperate with our clients and suppliers in order to
implement measures that are designed to maintain business continuity or to try and reduce any impact disruptions caused by COVID-19 could have in our business.
As informed earlier today by CEMEX Holdings Philippines, Inc. to the Philippines Stock Exchange, a voluntary decision has been taken to start a process that
in the upcoming days will lead to the temporary stoppage of production of the CEMEX Groups Solid Cement Plant located in Antipolo City, in the Philippines. This voluntary measure is consistent with the Philippines Government
implementation of the Enhanced Community Quarantine in Luzon in the Philippines that was declared by President of the Philippines this week in an effort of instituting more stringent measures to try to contain the spread of COVID-19, such as the prohibition of mass gatherings, strict home quarantine, suspension of mass transport facilities, and restricted land, air and sea travel. As of the date of this report, CEMEX cannot provide
assurance it will not adopt similar measures with respect to its other operating facilities.
In addition, the CEMEX Group has taken steps, such as
drawing funds from committed bank facilities, to improve its overall liquidity position in case of disruptions in the financial and capital markets. This measure will have the effect of increasing the CEMEX Groups overall debt and cash levels,
at least in the short to medium term. Among other measures the CEMEX Group is evaluating, is to delay certain capital expenditures that had been planned, and to have a reasonable amount of inventory at the CEMEX Groups operating facilities and
other locations with the intention of being able to serve customers, to the extent possible.