Strategy

With a diversified geographical portfolio weighted towards emerging countries, a new focus on our core businesses and a country-based organization that puts us closer to our markets, the Group is changing. No longer are we just manufacturers of building materials, we now are also providers of solutions. Through innovation and performance Lafarge intends to maintain this momentum and meet the challenge of urbanization by helping build better cities.

 

Find out about our challenges and ambitions

 

Solid foundations

Thanks to our international expansion strategy, we have developed a diversified geographic portfolio weighted towards fast-growing emerging markets. These account for 60% of Group sales in 2014, compared to 32% in 2005. Our geographic spread gives us unique potential for growth while limiting our risks - no emerging country represents more than 6% of Group sales. 

The Group has also refocused on its core businesses of Cement, Aggregates and Concrete. These activities offer strong potential for development and synergies, which will enable us to quicken the pace of growth at Lafarge.

 

Innovation and performance: two drivers of growth

Innovation

In order to fully establish ourselves as a provider of solutions for players in the construction industry, we are concentrating on certain priorities:

  • An approach based on segments, such as building or infrastructures, to ensure that the solutions we are offering our customers are suited to their needs.
  • The availability of our special concretes in all countries, adapted to various building practices by our local development laboratories. In parallel, the Lafarge Research Center is working on new applications which will enrich our offer.
  • New systems and solutions to construct foundations, facades or floors, combining several materials to ensure optimal performance in terms of cost, insulation, strength...
  • New services, such as upstream consulting for designers, placing and finishing concrete, and recovery and recycling demolition waste. We also take care of cement distribution as close as possible to our customers.


Innovation is a key growth driver, with €230 million of additional EBITDA in 2014 and a target of €500 million for 2015-2016.

Performance

We are working on several levers to improve our competitiveness:

  • Lowering costs. Having reduced our expenditure by €370 million in 2014, added to the €1.9 billion of savings already generated between 2006 and 2013, we want to continue producing more cheaply with the same level of quality. Our aim is to use more alternative fuels in order to reduce our energy bill. We are also optimizing our expenditure on the procurement of equipment and electricity.
  • Growth through improved plant performance. In order to produce an additional 13 to 15 million tonnes by 2015 with a minimum level of investment, we are further boosting the productivity and reliability of our plants, through the systematic application of operational models.
  • Speeding up our performance culture, by developing the skills of our key positions and accelerating on the transfer of know-how.


In total, our performance actions are expected to contribute €1.3 billion of EBITDA to our strategic plan for 2012-2015.

 

Renewed commitment to sustainable development

In 2012, we committed on 34 Sustainability Ambitions for 2020 which define our positive contribution to society. They will drive changes to every part of Lafarge operations. 

Our 2020 Ambitions are structured around 3 pillars:

  • Building communities (Health & Safety, Diversity, Human rights, etc.)
  • Sustainable construction (Access to housing, etc.)
  • Circular economy (natural resources, CO2 emissions, resources efficiency, etc.)
 

Contributing to building better cities

Our ambition is to support urban metamorphosis by helping build better cities. To do this, we have developed solutions through which cities can:

  • provide more housing, to address the issue of housing for all, including affordable housing;
  • be more compact, with the construction of vertical buildings which help reduce urban sprawl;
  • be more durable, with long-lasting constructions and by taking full account of environmental concerns, including energy efficiency of buildings and water preservation;
  • be more beautiful, enabling architectural creativity and performance;
  • and more connected, with a special offer for roads, airports, stations, bridges, tunnels and all infrastructures in general.
 
Download Lafarge 2014 Annual Report

Download Lafarge 2014 Annual Report

2014 Lafarge Annual Report (pdf, 5.5 MB)