Page 134 - STRATEGY Magazine (G)

INTERVIEW: CEMENTOS PROGRESO
JOSÉ RAÚL GONZÁLEZ
CEO
Cementos Progreso
Demand for cement in Guatemala is on the rise, and Cementos Progreso CEO José Raúl González describes an industry that is taking a long- term view—to the next 100 years—to meet that
demand with an eye toward relevant social, environmental, and political issues. The most recent data available shows significant increases in construction in Guatemala after a slight two-year downturn in the industry. More construction is accompanied by a commensurate uptick in demand for cement. The industry is responding by bringing new plants online to greatly increase production capacity.
GETTING THE DIRT OUT
Some companies in Guatemala are taking corporate social responsibility in new directions, focusing not just on the bottom line but also on the bottom floor—more specifically, the dirt used as the floor. Many Guatemalans, particularly the indigenous Maya population, live in extreme poverty and dwell in homes with dirt floors. As the economy improves, however, homeowners have greater purchasing power. González points to lower electricity, transportation, and fuel costs as impacting residents’ ability to upgrade their homes.
This positive income effect produces an increased demand for cement in the form of added rooms and—especially important from the perspective of public health—the ability to replace dirt floors.
“Paradoxically, you don’t think that health equals cement,” says González, “but we improve the lives of the people by changing that dirt floor, which carries a lot of germs.” Studies have shown that removing dirt floors not only makes homes more comfortable, but improves children’s health and cognitive abilities as well. Having a cement floor interrupts the life cycle of dangerous intestinal parasites. According to the Guatemala Housing Alliance, a cement floor means
“We believe that the single best product that could benefit the health of Guatemalan citizens is cement, which brings an enormous improvement to the living conditions of most Guatemalans.”
13 percent less diarrhea and an astonishing 20 percent reduction in the occurrence of anemia. Better health for children also leads to happier, less stressed adults in the home.
With an expansion of social responsibility programs, developed in collaboration with both the government and non-governmental organizations, the industry has aims beyond substituting cement floors for dirt. Also making safer homes for Guatemalans is the movement to replace open-pit cooking fires. Stoves made of cement, called estufas, reduce the possibility of burns, most of which occur in children; lower the risk of carbon monoxide poisoning; and decrease the incidence rate of eye damage and blindness from thick smoke. According to the World Health Organization, upper respiratory infection is the leading cause of death among Guatemalan women, and much of this is attributed to cooking over open fires. Further, one of every five children in the country dies because of respiratory illnesses before they reach the age of five. A simple estufa made of cement can mitigate these health problems, leading to longer and more productive lives for women and children.
EMBRACING THE ENVIRONMENT
Cement is helping the nation to recover environmentally as well. Some estimates suggest that the average Guatemalan family consumes 18,000 pounds of wood per year just to provide enough heat to cook their food. One of the main environmental issues in Guatemala is deforestation, which lowers air quality and takes away one of the main sources of water filtration. The introduction of estufas into private homes offers a direct solution to the problem. The cement industry is also responsible for planting more than 20 million trees in Guatemala just over the last few years.
The production of cement requires significant energy to fire the kilns that harden the product. The industry has begun burning trash as fuel, with one company consuming 17,000 tons of trash annually. This number includes some 6,000 tons of tires, which otherwise litter the landscape forever and give homes to disease-carrying mosquitoes. The industry also self-monitors; as high users of energy, cement makers are concerned with their carbon footprint and measure carbon output carefully.
Economists might say that the Guatemalan cement industry positively impacts “economic activity, taxes, employment, and infrastructure,” but González firmly believes that the industry’s greatest legacy is helping Guatemala’s poor to improve their lives. “We literally leave them with a better room.”
A Surprising Source of Home Health
From dirt floors to open-pit fires, many of Guatemala’s citizens live in ways that endanger their health. The cement industry, growing along with the construction industry, can help save lives and improve the standard of living for some of Guatemala’s poorest citizens.
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