Emerging countries account for 80% of global cement consumption thanks to strong urbanization, demographic growth, economic development, growing sophistication of the construction materials demand... These markets are a key development priority for the Group!
Emerging economies: significant potential for growth |
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The worldwide market for cement is worth around 2 billion euros and is growing at a rate of 5% per annum. Global demand for building materials is strongly impacted by demographic growth, infrastructure development and economic expansion in developing countries. These fast-growing markets currently account for 80% of the world's cement consumption. In 2006, the Group responded to this challenge by launching an ambitious program to develop its cement production capacities. At present, 50% of the Group's employees work in Africa, Central and Eastern Europe, the Mediterranean Basin and Latin America. These markets account for 50% of Cement Business sales. |
Press kits
Find out all the information in the press kit.
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Lafarge’s presence in sub-Saharan Africa |
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Lafarge has been present in sub-Saharan Africa since 1985, when the Group acquired a grinding plant in Cameroon. This was the first in a series of acquisitions in the region. The Group now has a presence in 10 countries and controls around 29% of the market. As such, it is the leading cement producer in the region. In sub-Saharan Africa, Lafarge:
This region offers a number of opportunities. As a result of increasing urbanization, 14 cities in the region are expected to see their population pass 3 million by 2015 and major infrastructure programs have been launched. Cement consumption in sub-Saharan Africa is expected to double over the next 10 years. |
Lafarge in figures
(Consolidated accounts on 31/12/2006). What about Asia?
The Excellence 2008 strategic plan states that Lafarge's main vector for development in the coming years would be its Cement Activity, particularly in growing markets. This
expansion will be achieved mainly through organic growth, and also through acquisitions, to consolidate the local positions. Illustration with India and Bangladesh. Press kit: India and Bangladesh (P.D.F - 2712 Kb)
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Meeting challenges |
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In some countries in sub-Saharan Africa, electricity and fuel supplies to industrial sites cannot be taken for granted. Lafarge is developing programs to use industrial and agricultural waste as an alternative fuel source. Improvements to logistics and transports are also a key challenge. Cement plants are sometimes located in remote areas with poor quality road and rail infrastructure. Lafarge also faces challenges with regard to human resources. The Group organizes training courses to develop employees' skills and implements health and prevention programs that target Aids, malaria and other diseases. |
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Expanding production capacity |
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In South Africa, the Group is expanding capacity at its Lichtenburg plant and is building a grinding plant in Johannesburg. These investments will increase cement capacity in the country to 1 million tons. In Zambia, Lafarge is responding to the country's growing infrastructure requirements by building a cement plant with a capacity of 750,000 near the capital, Lusaka. The Group is also expanding its plants in Cameroon, Uganda and Nigeria. |
Excellence 2008
To increase production capacity
The key points of the Excellence 2008 strategic plan concerning production capacity increase are as follows:
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Last update on 06/05/2008
