Download lafarge shui on cement: a new leader in cement in china

LAFARGE SHUI ON CEMENT: A NEW LEADER IN CEMENT IN CHINA
[Visual sign]
Lafarge Shui On Cement Logo
A new leader in Cement in China
[Voice over]
Lafarge Shui On Cement is a sacred union between 2 leaders, a complementary and
strategic association of 2 major companies in south-west China.
The joint venture was signed on August 11th (2005) between the world leader in construction
materials, Lafarge, and Hong Kong company Shui On Constructions and Materials Limited
(SOCAM).
Lafarge owns 55% of the new structure and is responsible for its management. The alliance
both confirms and legitimizes 12 years of Group presence in the Chinese cement market. A
market which is expanding significantly, representing 1 billion tons or half the world’s
consumption of cement.
China is experiencing the highest level of development in the world. It is also the most highly
populated country: 1.3 billion inhabitants, of whom there are 200 million in the south-west
region alone. This region is also experiencing one of the highest growth rates in the country:
a fact that has not escaped Lafarge.
It all began for the Group in Peking in 1994, with the acquisition of a first cement plant, which
was soon modernized, followed by a second in 2002.
But it is in the south-west that Lafarge is really taking off. Establishment there began in 1999
with the construction of a new plant in Chengdu in the Sichuan province.
Faced with high growth in local demand for cement, the Group confirmed its position by
building the finest plant in the country, held up as an example. Lafarge pursued its
development in 2003 with the cement plant in Chongqing.
The Group emphasizes respect for its standards: employee safety, respect for the
environment and cutting-edge technology. Over the last 2 years, Lafarge and Chinese
equipment manufacturers have been working in close collaboration.
As a result, a second line has been entirely constructed using Chinese equipment, quickly
and for little cost - quite a feat.
The Group is thereby adapting to local industrial methods: it is a gamble, but with more than
favorable odds. Construction delivery times have been reduced from 24 to 16 months. And
the Group’s expertise and standards are respected. Despite fierce competition, Lafarge has
successfully reduced the per-ton sale price of cement by 12 dollars. It trains its Chinese
teams and was named best employer in 2004.
Finally, a second line under construction in Chengdu should double the plant’s production
capacity by this summer.
So this is the context in which Lafarge joined forces with Shui On in August 2005. The 2
partners grouped their cement plants together: 17 in all. Without forgetting the recent
acquisition of Shuangma in Sichuan last November.
The total production capacity of the joint venture will therefore reach 21 million tons of
cement by the end of 2006.
Not content with reaching a leadership position in south-west China, Lafarge Shui On
Cement also became the second-largest cement manufacturer in the country in 2005.
Lafarge is also present in China, including in the high-growth gypsum and roofing sectors.
But in a Group like Lafarge, economic success cannot be separated from environmental and
social performance.
Since 2001, Lafarge has been working on respect for our planet alongside WWF
International.”
[Visual sign]
WWF logo, Lafarge logo
Two worlds, one planet
[Voice over]
"The aim is to promote sustainable construction and reduce CO2 emissions, while helping
China to limit its carbon waste. An ecological approach and a real advantage in entering the
Chinese market, the biggest builder of homes in the world.
A venture with fantastic prospects for the world leader in construction materials.”