MONTERREY – Lorenzo Zambrano, one of Mexico’s best known businessmen who turned Cemex into a global cement giant but also nearly brought the company crashing down, died on Monday aged 70.
Cemex said its chief executive of the past three decades passed away in Madrid of natural causes. There had been no reports of illness and it was unclear who will succeed Zambrano, whose grandfather founded the company.
Among Mexico’s wealthiest people in 2006, when he was worth an estimated US$1,8 billion, Zambrano’s fortune tumbled after a risky purchase of a rival the following year. He fell off Forbes’ rich list, which fellow Mexican Carlos Slim later led.
Before Zambrano took charge, Cemex was a financially solid, domestic operation that had successfully avoided Mexico’s dramatic economic crashes but was risk averse.
Zambrano moved to change that, building it into one of Mexico’s first modern multinationals. A series of acquisitions extended Cemex’s reach to five continents, making him the public face of one of Latin America’s most successful companies.
But the US$16 billion acquisition of Australian building materials company Rinker in 2007, when the US housing market was already months into a downturn, turned Cemex into an early victim of the subprime housing crash.
Cemex, one of Mexico’s biggest listed companies with a market value of around 200 billion pesos (US$15.4 billion), would spend the following years struggling with large debts and trimming costs by outsourcing and cutting jobs.
Founded by Zambrano’s grandfather more than a century ago, the company started producing cement in the northern city of Monterrey, which became one of Mexico’s industrial hubs.
He joined the company straight after graduate school in 1968, when he earned his master degree in business administration at Stanford University.
By 1985, at the age of 41, Cemex’s board give him full power as CEO and Zambrano set high ambitions for the company.
– Nampa-Reuters
In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.
The Namibian uses AI tools to assist with improved quality, accuracy and efficiency, while maintaining editorial oversight and journalistic integrity.
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!
