Lafarge

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Lafarge S.A.
TypeSociété Anonyme
Traded asEuronextLG
IndustryBuilding materials
Founded1833
HeadquartersParis, France
Key peopleBruno Lafont (Chairman and CEO)
ProductsCement, Construction aggregates, asphalt production and paving, concrete and gypsum wallboard
Revenue15.816 billion (2012)[1]
Operating income€ 2.44 billion (2012)[1]
Profit€ 432 million (2012)[1]
Total assets€39.46 billion (end 2012)[1]
Employees65,000 (end 2012)[1]
Websitewww.lafarge.com
 
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Lafarge S.A.
TypeSociété Anonyme
Traded asEuronextLG
IndustryBuilding materials
Founded1833
HeadquartersParis, France
Key peopleBruno Lafont (Chairman and CEO)
ProductsCement, Construction aggregates, asphalt production and paving, concrete and gypsum wallboard
Revenue15.816 billion (2012)[1]
Operating income€ 2.44 billion (2012)[1]
Profit€ 432 million (2012)[1]
Total assets€39.46 billion (end 2012)[1]
Employees65,000 (end 2012)[1]
Websitewww.lafarge.com
bags of Lafarge cement

Lafarge is a French industrial company specialising in four major products: cement, construction aggregates, concrete and gypsum wallboard. The company is the world's largest cement manufacturer.

History[edit]

Lafarge was founded in 1833[2] by Joseph-Auguste Pavin de Lafarge in Le Teil (Ardèche), to exploit the limestone quarry in Mont Saint-Victor between Le Teil and Viviers. The limestone is white and argillaceous, and yielded an eminently hydraulic lime.

Villeneuve-lès-Maguelone, Hérault 05.jpg

In 1864 Lafarge signed its first international contract for the delivery of 110,000 tonnes of lime to the Suez Canal construction project.[2] It developed calcium aluminate cements. It was also an early pioneer in the production of white Portland cement, still made at the company's original Le Teil plant.

In 1919, a public company was formed, named "Société anonyme des chaux et ciments de Lafarge et du Teil."

In 1980, it joined with the Belgian coal, coke and fertilizer company Coppée to become SA Lafarge Coppée.

Lafarge purchased a plant from the National Gypsum Company in early-1987.[3] Ten years later, it bought Redland plc, a leading British quarry operator.[4]

In 1999, Lafarge acquired 100% shareholding in Hima Cement Limited, the second-largest cement manufacturer in Uganda, with installed capacity of 850,000 metric tonnes annually, as of January 2011.[5] IN 1999, Lafarge entered the Indian market through its cement business,with the acquisition of Tata Steel's cement activity.This acquisition was followed by the purchase of the Raymond Cement facility in 2001.[6] In 2001, Lafarge, then the world's second largest cement manufacturer, acquired Blue Circle Industries (BCI), which at the time was the world's sixth largest cement manufacturer, to become the world leader in cement manufacturing.[2]

In 2006, Lafarge North America shareholders accepted a $3 billion tender offer from Lafarge Group which gave the parent company full control over the North American business, removing LNA from the New York Stock Exchange. Previously the Group had owned 53% of LNA shares.[7]

In 2007, it divested its roofing division, selling it to a private equity group in a deal that resulted in Lafarge retaining a 35% equity stake.[2]

In December 2007, Lafarge announced the purchase of the Orascom Cement Group, an Egyptian based cement producer with operations across Africa and the Middle East, from Orascom Construction Industries (OCI).[8]

On May 15, 2008 Lafarge acquired Larsen & Toubro Ready Mix-Concrete (RMC) business in India for $349 million.[9]

In 2010, Lafarge strengthened its presence in Brazil (agreement with Votorantim[10]) and in Central Europe (with STRABAG[11]).

In 2011, Lafarge SA will build a cement plant in Langkat, North Sumatra, Indonesia with investment up to Rp.5 trillion ($585 million).[12]

Lafarge launches three plants in Hungary, Syria and Nigeria and creates a joint-venture with Anglo American in the United Kingdom.

The Group sold most of its European, South American, Asian and Australian gypsum operations.[13][14][15]

At the end of 2011, Lafarge announced its new organization project focused on its markets and its clients to accelerate the Group's development and profitability.[16]

In April 2013, Lafarge adopts a new brand baseline “Building better cities”.[17] It reflects the Group’s ambition to contribute to the improvement of cities by developing innovative construction products, solutions and systems.

Lafarge’s contribution to better cities addresses some key challenges of urbanization:[18] contribute to more housing in cities;

In September 2013 Lafarge has agreed the sale of its 53.3 per cent stake in its Honduras subsidiary Lafarge Cementos SA de CV to Cementos Argos for €232m [19]

Environmental concerns[edit]

On July 11, 2008, the Albany Times Union reported that Lafarge's Ravena, New York plant "was the greatest source of mercury emissions in New York from 2004 to 2006" [20] According to the story, plans have been made to upgrade the plant to reduce the mercury emissions. A second story, published the following day, stated that the factory had emitted 400 pounds (181 kg) of mercury annually from 2004 to 2006.[21] In November 2010 Lafarge, together along with other companies, opposes new EPA regulations that require mercury-emissions reductions at cement plants.[22] Preliminary data published by the EPA for the year 2009 showed 145 pounds of mercury were recorded for the Ravena plant (total on- and off-site disposals). The plant has continued to perform within permitted limits.[23]

The group[edit]

The group conducts its operations through more than 1,000 subsidiaries, out of which 82% are consolidated. Further to the divestment of a majority of its gypsum assets and the fundamental changes to its management structure, the group has fully refocused on its core businesses of cement, aggregates and concrete. The strategic shift will accelerate growth and innovation.[citation needed]

It has an organizational structure based on its three divisions, with decentralized local operations and strong corporate expert departments, which are involved in strategic decisions.

The headquarters of the group are based in Paris (France).

Management team[edit]

On November Lafarge announced its new organization project focused on its markets and its clients, designed to accelerate the Group’s development and profitability. The product line-based organization is replaced with a country-based organization. This included the removal of a layer of management and the resulting reorganization of the executive committee. Since January 2012.[16]

Board of directors[edit]

The board of directors of Lafarge has 16 members appointed by the annual shareholders' meeting for a period of four years:[24]

Former members of the Board: Guilherme Frering, Raphaël de Lafarge, Michael Blakenham, Jean-Pierre Boisivon, Alain Joly, Bernard Kasriel, Jacques Lefèvre, Eric de Waubert de Genlis, Michel Pébereau, Pierre de Lafarge, Gérald Frère, Bertrand Collomb.

Financial data[edit]

The following is a summary of data:[25][26][27]

Financial data in millions of euro
Year200120022003200420052006200720082009201020112012
Sales13,69814,61013,65814,43615,96916,90917,61419,03315,88414,83415,28415,816
EBITDA2,8623,1012,8203,0282,9203,6104,1834,6183,6003,6143,2173,450
Net results7504467288681,0961,3721,9091,598736827593432
Net debt9,3328,5446,7347,0177,2219,8458,68516,88413,79513,99311,97411,317
Staff82,89277,54775,73377,07580,14682,73477,72083,44077,99475,68068,00065,000

See also[edit]

Main Lafarge competitors are:

External links[edit]

References[edit]

  1. ^ a b c d e "Annual Report 2012". Lafarge. 
  2. ^ a b c d Lafarge history
  3. ^ Wharton, George. "Great Lakes Fleet Page Vessel Feature - J. A. W. Iglehart," Boatnerd.com.
  4. ^ Redlands needs white knights
  5. ^ Hima Cement Expands Factory
  6. ^ www.lafarge.in
  7. ^ French parent targets huge but little-known Lafarge North America
  8. ^ Lafarge buys Orascom Cement for Euros 10bn
  9. ^ Lafarge Enters in Indian RMC Business with L&T Acquisition
  10. ^ Lafarge strengthens its presence in Brazil following the sale of its Cimpor stake to Votorantim
  11. ^ Lafarge and STRABAG to create a common company in Cement in Central Europe
  12. ^ http://www.thejakartapost.com/news/2011/07/04/lafarge-may-invest-rp-5t-n-sumatra.html-0
  13. ^ Lafarge closes sale of Gypsum assets to Etex Group
  14. ^ Lafarge agreed with Boral to sell them its stake in their common Asian Gypsum Joint-Venture for 429 M€
  15. ^ Lafarge sells its Australian Gypsum operations for 120 million euros
  16. ^ a b Lafarge announces its new organization project
  17. ^ http://www.lafarge.com/wps/portal/6_2_2-TCDet?WCM_GLOBAL_CONTEXT=/wps/wcm/connect/Lafarge.com/AllPR/2013/PR20130411/MainEN Press release:"Building better cities" An ambition driving our innovation
  18. ^ http://www.lafarge.com/wps/portal/9-contribuer-a-des-villes-meilleures "Contribute to better cities" section on the corporate website
  19. ^ "Lafarge - September 2013". CemNet.com. International Cement Review. 03 October 2013. Retrieved 31 October 2013. 
  20. ^ "Update at Ravena Cement Plant to Clean Air". Albany Times Union. Retrieved 2008-07-29. 
  21. ^ "Update at Ravena Cement Plant to Clean Air". Albany Times Union. Retrieved 2008-07-29. 
  22. ^ http://www.publicnewsservice.org/index.php?/content/article/16878-1
  23. ^ "The EPA's Toxic Release Inventory (TRI) explorer". 
  24. ^ "Board of Directors". Retrieved 13 February 2013. 
  25. ^ "Annual Report 2011". Lafarge. Retrieved 17 April 2011. 
  26. ^ "Annual Report 2009". Lafarge. Retrieved 2010-03-14. 
  27. ^ OpesC