Sector overview

Despite the economic and financial crisis, global cement demand grew by approximately 8% in 2011.

This growth is predominantly supported by the dynamism of most large emerging markets, particularly China, Brazil, India and Sub Saharan Africa, where demography, urbanization and economic growth drive th needs for housing and infrastructure.

Emerging markets account for 71% of Group's current operating income (76% for the Cement Division) in 2011.

Cost structure

In general, the cost of manufacturing our different products can be broken down as follows:

• energy accounts for 33% raw materials 28% of the cost of producing cement,
• raw materials represent approximately 70% of the cost of ready-mix concrete. Delivery expenses account for approximately 20% of the cost,
• energy, raw materials and labor represent 50% of the cost of producing aggregates.

Reducing the environmental footprint of our activities

The cement industry emits CO2. Since the 1970s, the Group has been working to reduce its ecological footprint in order to respond to needs for infrastructure, housing, hospitals and schools while conserving natural resources.

This approach focuses on:

• the modernization of plants and the improvement of industrial processes,
• product research and innovation,
• the use of alternative fuels and materials, with the aim of reducing the consumption of non-renewable natural resources and limiting CO2 emissions.
  
  

Towards sustainable construction

The building consumes vast amounts of energy and is the source of 40% of the CO2 emissions of developed countries.

Lafarge is working to invent the building methods of tomorrow. The entire life cycle of the building needs to be reconsidered, from the use of recyclable materials to the integration of renewable energies and the reduction of pollution.