Cooperativa La Cruz Azul

Cooperativa Cruz Azul is a cement manufacturer in Hidalgo that was bought by 200 workers as a cooperative in 1931. It now has around 1,400 workers. The company started in 1881.  Investors rescued it from bankruptcy in 1906 but then wanted their capital out during the Mexican revolution, and after the 1929 crash the plant was only operating intermittently.  In 1931 a competing company made a hostile effort to buy the company and shut it down. Workers successfully pressured the state to expropriate the company as a public utility and restructure it under workers ownership. In 1931 around 200 workers agreed to pay investors back $1.3m over 10 years. In the 1950s a new director modernized the company and grew it 600%. In the process they build a cooperative company town, investing in schools, paved streets, business corridors, and sponsoring a major soccer team. They also supported five similar cooperatives to open in nearby states. In 2019 a long term leader fled after accusations of mishandling funds.

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