Euronext : LG, NYSE : LR
Lafarge has today announced the decision by Lafarge Ciments (Morocco), its 50% subsidiary, to build a new production line in Bouskoura, Morocco, to increase the cement capacity by over 900,000 tonnes.
This investment will significantly reinforce the plant's profitability. The production is scheduled to start at the beginning of 2006. The project is expected to create value quickly, due to market growth.
“Together with the successful start of our new cement plant in Tetouan, the increase of capacity in Bouskoura will enable us to pursue our development with very good returns in this fast-growing market. This is perfectly consistent with Lafarge's long-term business strategy, particularly directed towards growing markets”, said Bernard Kasriel, CEO of Lafarge.
Notes to the Editors:
- 1. Lafarge Ciments, a 50% subsidiary of Lafarge held in partnership with SNI (Société Nationale d'Investissement), has 4 cement plants in Bouskoura, Tangiers, Meknes and Tetouan, and a total capacity of 4.2 million tonnes, before the increase in capacity of the Bouskoura plant. In 2003, Lafarge Ciments posted sales of 275.3 million euros and a consolidated income of 106.5 million euros, increasing by 12.5% and 18.5% respectively, compared with 2002.
2. Overall, in 2003, the Cement Division of the Lafarge Group posted a 46% share of its sales and a 42% share of its operating income in developing countries.
3. 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 and posted sales of €13.6 billion and operating income of €1.9 billion in 2003.
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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 number D03-0375 as updated on June 5, 2003 and November 17, 2003 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.