Lafarge Committed to Long-term Investment in Vietnam

Lafarge Committed to Long-term Investment in Vietnam

Lafarge (France), the world leader in building materials, holds top-ranking positions in all four of its divisions: cement, aggregates & concrete, roofing and gypsum. Lafarge employs 75,000 people in 75 countries. In 2003, the Group posted sales of US$13.6 billion and operating profit on ordinary activities of US$1.9 billion.

Lafarge, which first moved into the Ho Chi Minh City region in 2001, has announced the construction of a cement grinding plant in Dong Nai province. Construction of this 500,000-tonne grinding facility is to start in October 2004, and the new plant, which will be built to the highest environmental and safety standards, is set to enter service during late 2005.

The investment is US$30 million, and is being made by the DonaFrance joint venture, in which Lafarge owns a 70 per cent interest alongside a Vietnamese building materials company. The project is rapidly expected to create value for shareholders thanks to the construction market s strong pace of expansion, particularly in the Ho Chi Minh City region.

The Vietnamese cement market is enjoying very brisk conditions with annual growth averaging close to 15 per cent over the past decade. In 2003, Lafarge also pursued and deepened its partnerships with civil society. Lafarge formalized agreements with CARE in the fight against AIDS in Africa. Their work with WWF has extended and produced new results which are published this year. Lafarge works with Habitat for Humanity in twelve countries to provide housing for the homeless.

• Bich Loan