Lafarge S.A.
Lafarge and Shui On form Joint Venture in China to create the new cement …
Corporate-news processed and transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Euronext : LG, NYSE : LR
PRESS RELEASE
Lafarge and Shui On form Joint Venture in China
to create the new cement leader in South West Region
Hong Kong, Paris, August 11, 2005 – Lafarge, the world leader in building
materials, and Shui On Construction And Materials Limited (SOCAM), the leading
cement producer in South West China, today announced a joint venture
partnership to merge their cement operations in China. The strategic alliance
will establish the new cement leader in the South West Region, one of the
largest and fastest growing areas in the Chinese Mainland.
The joint venture, to be named Lafarge Shui On Cement, will be 55% owned by
Lafarge and 45% owned by SOCAM.
Lafarge Shui On Cement will combine Lafarge’s cement operations in the Chinese
Mainland, located in Sichuan, Chongqing and Beijing, with SOCAM’s cement
operations in Chongqing and Sichuan, its larger plants in Guizhou, and the
prospective acquisition of several important plants in Yunnan, which is
awaiting approval from the Central Government authorities. The total capacity
of the joint venture will be 17.4 million tonnes per annum by the end of 2005
including Yunnan.
The South West Region in China has a high growth potential with a population
of more than 200 million people, a rapid pace of development and extensive
infrastructure development plans. Currently, China accounts for about 45% of
the world’s cement consumption, with an estimated market of 900 million tonnes
in 2004.
“Our strategy is in line with the government’s extensive expansion plans for
the South West Region, under its ‘Go West’ policy,” said Mr. Vincent H.S. Lo,
Chairman of SOCAM. “There is enormous growth potential in this market, and we
will leverage our complementary strengths to seize these opportunities and
work towards becoming a leading cement manufacturer in the Chinese Mainland.”
As the largest cement producer in the South West Region – and one of the top
three players in all of China – the joint venture is well-positioned to
further enhance its leadership and expansion in the region by bringing
together the world-class technical expertise of Lafarge and the extensive
experience and established reputation of SOCAM in the Chinese Mainland.
“This partnership agreement with Shui On is a major milestone in our
development in China,” said Mr. Bernard Kasriel, Chief Executive Officer of
Lafarge. “We are pleased to join forces with SOCAM. After ten years of
presence in the Chinese Mainland, we have built the knowledge and the
resources that drive us to move a step ahead, in order to benefit from market
growth opportunities and to extend our leading positions in several provinces.
I am confident that our management team will bring to the newly formed
company the required expertise to create value and meet our international
environmental standards.”
Chaired by Mr Vincent H.S. Lo, Lafarge Shui On Cement’s board of directors
will comprise an equal number of representatives appointed by Lafarge and
SOCAM.
Lafarge will appoint the Chief Executive Officer and lead the management of
the joint venture.
It is expected that the deal will close following SOCAM’s special general
meeting planned in October 2005.
Notes to Editors
About Lafarge
Lafarge, the world leader in building materials, holds top-ranking positions
in all four of its Divisions: Cement, Aggregates & Concrete, Roofing and
Gypsum. Lafarge employs 77,000 people in 75 countries and posted sales of
EUR14.4 billion in 2004. More information is available on: www.lafarge.com
About SOCAM
SOCAM, a member of the Shui On Group, was listed on the Hong Kong Stock
Exchange in 1997 and is engaged in construction and construction materials in
Hong Kong and the Chinese Mainland. The company also has an interest of more
than 20% in Shui On Land Limited. Further information can be found at
http://www.shuion.com
Contacts
Lafarge Group
COMMUNICATIONS: INVESTOR RELATIONS:
Stéphanie Tessier: 33-1 44-34-92-32 James Palmer: 33-1 44-34-92-93
Mobile: + 33 6 22 11 99 77 james.palmer@lafarge.com
stephanie.tessier@lafarge.com
Amanda Jones: 33-1 44-34-19-47 Danièle Daouphars: 33-1 44-34-92-93
Mobile: + 33 6 22 17 18 44 daniele.daouphars@lafarge.com
amanda.jones@lafarge.com
SOCAM
Christine Mui Stephanie Lin
Tel: (852) 2879 1866 Tel: (852) 2879 1836
E-mail: corpcomm@shuion.com.hk E-mail: corpcomm@shuion.com.hk
Statements made in this press release that are not historical facts, are
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These statements are not
guarantees of future performance and involve risks, uncertainties and
assumptions (“Factors”), which are difficult to predict. Some of the Factors
that could cause actual results to differ materially from those expressed in
the forward-looking statements include, but are not limited to: the cyclical
nature of the Company’s business; national and regional economic conditions in
the countries in which the Group Lafarge does business; currency
fluctuations; seasonal nature of the Company’s operations; levels of
construction spending in major markets; supply/demand structure of the
industry; competition from new or existing competitors; unfavorable weather
conditions during peak construction periods; changes in and implementation of
environmental and other governmental regulations; our ability to successfully
identify, complete and efficiently integrate acquisitions; our ability to
successfully penetrate new markets; and other Factors disclosed in the
Company’s public filings with the French Autorité des Marchés Financiers and
the US Securities and Exchange Commission including its Reference Document and
annual report on Form 20-F. In general, the Company is subject to the risks
and uncertainties of the construction industry and of doing business
throughout the world. The forward-looking statements are made as of this date
and the Company undertakes no obligation to update them, whether as a result
of new information, future events or otherwise.
End of announcement (c)DGAP 11.08.2005
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WKN: 850646; ISIN: FR0000120537; Index:
Listed: Freiverkehr in Berlin-Bremen, Düsseldorf, Frankfurt, Hamburg, München
und Stuttgart
111109 Aug 05
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