The cement market is expanding rapidly in emerging countries on the back of strong economic and demographic growth. Lafarge is reinforcing its position in these markets by developing new production capacities and building new plants.
Cement: a growth driver for the Group |
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The Excellence 2008 strategic plan, launched in June 2006, establishes cement as the leading growth factor for the Group. The emphasis is on development in emerging markets. In 2007, these markets accounted for 53% of the sales and earnings of the Cement Business. Lafarge has launched a program to construct 45 million tons of new production capacity between 2006 and 2010, mostly in emerging markets. With the acquisition of Orascom Cement, the Group will benefit from an additional 45 million tons of capacity by 2010, all of which is in fast-growing markets. Lafarge thus becomes the undisputed leader in cement in emerging markets: a remarkable transformation!
Overall, Lafarge's production capacity should grow from 170 million tons in 2006 to 260 million tons in 2010. The contribution of emerging markets to the Group's earnings should reach 65% in 2010 compared to 45% in 2007. By reinforcing the position of the Cement Business in emerging markets, the Group will also be better placed to develop its Aggregates and Concrete businesses in these markets. |
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Cement: key to development |
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The market for cement is booming around the world. For 20 years, annual growth stands at 5%, the equivalent of 100 million additional tons being consumed per year. Growth is strongest in emerging markets. Cement is one of the products for which there is the greatest demand in developing countries because increasing urbanization creates demand for housing and infrastructure. Cement lies at the heart of Lafarge's strategy, which focuses on developing strong positions in emerging markets in order to benefit, in all environments, from the growing demand for cement. |
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Last update on 11/06/2008
