The cement market is expanding rapidly in emerging countries on the back of strong urban, economic and demographic growth. Lafarge is reinforcing its position in these markets by developing new production capacities and building new plants.
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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Cement: a growth driver for the Group |
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Since 2006, cement has been the leading growth factor for the Group:
In total, with this acquisition and building program in place, there are 78 million tons of supplementary cement capacities. These ultra-modern plants situated mainly in emerging markets will complete the Lafarge offer between 2006 and 2012. With the new cement plants, we predict additional EBITDA (earnings before interest, taxes, depreciation and amortization) of between 750 and 850 million euros for 2012, and a ROCE (return on capital employed) of between 12 and 15% for the same year.
The contribution of emerging markets to the Group's earnings should reach 65% in 2010 compared to 52% in 2009. 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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Last update on 03/31/2010
