Lafarge S.A.
Lafarge S.A.: Lafarge to build a cement grinding plant in southern Vietnam
Corporate-news announcement sent by DGAP.
The sender is solely responsible for the contents of this announcement.
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PRESS RELEASE
Euronext: LG, NYSE: LR Paris, October 18, 2004
Lafarge announces the construction of a cement grinding plant
in southern Vietnam
Lafarge, which first moved into the Ho Chi Minh City region in 2001, has
announced the construction of a cement grinding plant on the Long Tau river,
20km south-east of Ho Chi Minh City in Dong Nai province.
Construction of this 500,000 tonne grinding facility is due to start in
October 2004, and the new plant, which will be built to the highest
environmental and safety standards, is set to enter service during late 2005.
The investment, which will cost a total of almost US$30 million, is being made
by the DonaFrance joint venture, in which Lafarge owns a 70% interest
alongside a Vietnamese building materials company. The project is rapidly
expected to create value for shareholders thanks to the construction market’s
strong pace of expansion, particularly in the Ho Chi Minh City region.
The Vietnamese cement market is enjoying very brisk conditions with annual
growth averaging close to 15% over the past decade. With demand for cement
running at 23 million tonnes, Vietnam currently has to import over 4 million
tonnes of clinker.
“This project in a region undergoing rapid economic and urban development fits
perfectly with our expansion strategy focusing on growth markets and will help
to strengthen our manufacturing presence in South-East Asia” commented Bernard
Kasriel, Lafarge’s Chief Executive Officer.
Notes to Editors:
1.Lafarge’s ready-mix concrete activities in the Ho Chi Minh City region have
a capacity of 350,000 m³ and consist of three concrete plants with 80
employees.
2.The southern Vietnamese market, which currently accounts for a volume of 10
million tonnes and has posted growth averaging close to 15% over the past ten
years, is already experiencing a cement production shortage of over 2 million
tonnes. Our project is an integral part of the Vietnamese Construction
Ministry’s Development Plan that aims to cut the percentage of imports.
3.Ho Chi Minh City already has a population of close to 7 million, a figure
that may double over the next ten years. Since 1995, GDP has increased at an
average rate of 12%. Dong Nai province is also enjoying very rapid expansion,
with some of the country’s highest growth rates, including 20% for the
industrial sector.
4.The Lafarge group’s Cement division generated 46% of its sales and 42% of
its operating income in emerging markets in 2003.
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 75,000 people in 75 countries. In 2003, the Group
posted sales of EUR13.6 billion and operating profit on ordinary activities
of EUR1.9 billion.
Further information is available on the web site at http://www.lafarge.com .
COMMUNICATIONS:INVESTOR RELATIONS:
Stéphanie Tessier: 33-1 44-34-92-32 stephanie.tessier@lafarge.com
James Palmer: 33-1 44-34-11-26 james.palmer@lafarge.com
Amanda Jones: 33-1 44-34-19 47 amanda.jones@lafarge.com
Danièle Daouphars: 33-1 44-34-11-51 daniele.daouphars@lafarge.com
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 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 message, (c)DGAP 18.10.2004
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WKN: 850646; ISIN: FR0000120537; Index:
Listed: Amtlicher Handel in Düsseldorf und Frankfurt (General Standard);
Freiverkehr in Berlin-Bremen, Hamburg, München und Stuttgart
180951 Okt 04
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