Lafarge Signs Strategic Cooperation Agreement with Government of Yunnan Province, China, to boost its expansion in a fast growing market

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• 23rd December 2007
• Materials Handling
 

Lafarge has signed today with the People's Government of Yunnan Province a strategic cooperation agreement concerning the further modernization and restructuring of the building materials industry in the fast developing province of Yunnan, China. The agreement focuses on cement, ready-mix concrete, aggregates and plasterboard. It will involve the construction of at least an additional 10 million tons of new cement capacity by 2010 by Lafarge Shui On, plus brand new plants in plasterboard and ready-mix concrete, as well as aggregate quarries.

As a strategic partner, Lafarge will assist the Yunnan Government in accelerating the modernization of the cement industry, promoting energy-saving policies, developing the use of waste as alternative fuel and developing new quality products in all the product lines covered by the agreement.

The agreement represents a total investment of approximately 600 Million USD in state of the art, low cost and highly efficient industrial facilities.

 provinces of South West China -Yunnan, Guizhou, Sichuan and Chongqing-, Lafarge Shui On should bring its total cement production capacity in China from 20 million tonnes at the end of 2006 to 50 million tonnes in 2012.

Mr. Qin Guangrong, Governor of Yunnan Province, and Mr. Bruno Lafont, Chairman and CEO of Lafarge Group, were present at the signing ceremony in Kunming, Yunnan.

At the ceremony, Governor Qin Guangrong said:
"With the increasing demand in the local cement market, the building materials industry of Yunnan Province is forecast to grow rapidly in the coming years. In line with the 11th 5-year plan of Yunnan Province, we are aiming at modernizing rapidly the construction materials industry in Yunnan. I believe that involving Lafarge, the world leader in building materials, which will be able to bring its management and technological expertise to the future plants in Yunnan, will help our Province to move faster to more modern and energy efficient technology."

Bruno Lafont, the Chairman and CEO of Lafarge Group, declared:
"This agreement is a milestone for Lafarge in China. It is an opportunity for Lafarge to strengthen its business in the Yunnan Province, where we are already present. Lafarge is honored to have this win-win cooperation with Yunnan. All of our operations in the Yunnan Province will adhere strictly to Lafarge environmental standards in terms of emissions reductions, waste heat recovery for power generation and quarry rehabilitation. Lafarge will also take the lead in the Yunnan Province in promoting safety and it will invest in recruiting and training local talents.
We are determined to step up the pace of our development in China.

The Chinese markets in which we operate are enjoying sustainable growth and we believe timing is optimal to build upon our investment in China since 1994, as well as our in-depth cooperation with the Chinese authorities."

 http://www.lafarge.com.cn/