Lafarge S.A.
Lafarge S.A.:Lafarge develops further in Sichuan, China
Corporate-news transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Euronext: LG, NYSE: LRParis, November 15, 2005
PRESS RELEASE
LAFARGE SHUI ON CEMENT STRENGTHENS ITS PRESENCE IN SICHUAN PROVINCE
IN SOUTHWEST CHINA
Lafarge Shui On Cement, the joint venture between Lafarge and SOCAM created on
11 August 2005, announces the acquisition of 100% shares of the Shuangma
Investment Group in Sichuan Province for around US$38 million. Taking into
account the debt of the company and investment budgeted in the short-term to
improve the existing facilities, the total investment for Lafarge Shui On
Cement would amount to around US$160 million.
Through this acquisition, Lafarge Shui On Cement is strengthening its
positions in Chengdu, the capital of Sichuan, which is already supplied by the
Dujiangyan Lafarge cement plant whose production capacity is currently being
doubled to 2.8 million tonnes in 2006. Shuangma acquisition also provides two
complementary positions in Sichuan: a cement plant in the north of the
province near Mianyang, and two plants in the south near Yibin.
Thanks to this acquisition, the joint venture becomes the leader in Sichuan.
Lafarge Shui On Cement already had a production capacity of 2.3 million tonnes
in Sichuan and will totalize a production capacity in the province of 5.6
million tonnes by the end of 2005, and 7 million tonnes after the completion
of the second line in Dujiangyan.
The transaction will increase the cement production capacity of the joint
venture in China to 21 million tonnes, bolstering its position as the leader
in Southwest China, among one of the three largest cement producers in China.
Lafarge Shui On Cement is 55% owned by Lafarge and 45% owned by SOCAM. Lafarge
leads the management of the joint venture and named Cyrille Ragoucy as Chief
Executive Officer.
Notes to Editors
About Lafarge Shui On Cement
Lafarge Shui On Cement combines the expertise and know-how of Lafarge in
turning around cement operations, and Shui On’s experience and reputation in
the Chinese market. Lafarge Shui On Cement wants to become a leading, state of
the art, cement producer in the Chinese Mainland, with modern, cost efficient
and environmentally friendly operations. Lafarge Shui On Cement aims at
contributing to the program of construction in China, supplying its customers
with top quality products and unique services, both for housing and
infrastructures.
About Shuangma
Among the main companies controlled by Shuangma Investment Group, Shuangma
Cement Co. Ltd is listed on the Shenzhen Stock Exchange.
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. Convinced that there can be no sustainable economic
performance without social progress and protection of the environment, Lafarge
has been committed to sustainable development for many years, emphasizing the
development of a long term dialogue with the civil society and with
communities. More information is available on: http://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 stephanie.tessier@lafarge.com
Yvon Brind’Amour: 33-1 44-34-92-93 yvon.brindamour@lafarge.com
Amanda Jones: 33-1 44-34-19-47 amanda.jones@lafarge.com
Danièle Daouphars: 33-1 44-34-92-93 daniele.daouphars@lafarge.com
Statements made in this press release that are not historical facts, including
the planned expansion of production capacity and expected market position of
our cement business in China, 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 15.11.2005
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WKN: 850646; ISIN: FR0000120537; Index:
Listed: Freiverkehr in Berlin-Bremen, Düsseldorf, Frankfurt, Hamburg, München
und Stuttgart
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