Lafarge outgrows business plan

The world’s largest cement producer, French group Lafarge, last year outgrew projections for its Romanian-based operations, reporting turnover worth 159.7 million euros, above the anticipated level of 150 million euros. The increase was 20% in ROL as compared to the 2002 results. In euros, the French group’s results were not very different from the previous year’s, because of the single European currency’s strong growth.

The cement market climbed 5% in 2003. For 2004, Lafarge officials project a slightly slower growth pace – 4%.

An important factor behind the positive evolution of Lafarge turnover in Romania, according to the group’s representatives, was the sale of its lime business at the end of last year to Simcor Oradea group, under a transaction worth some 5 million euros.

Lafarge holds about a third of the domestic cement market, which was estimated at 5 million tonnes in 2003, namely an average value of 250-260 million euros. The French operator is competing against German group HeidelbergCement and Swiss company Holcim. Lafarge also exports to Mediterranean Europe and African.

Lafarge Romcim, the group’s main company in Romania, reported sales worth more than 97 million euros in the first three quarters of last year. In 2002, the company had logged net profit of 24.8 million euros, against turnover worth 127 million euros, in line with the Romanian accounting standards.

Lafarge owns five cement plants in Romania, in Medgidia, Hoghiz (Brasov county) and Targu Jiu. Beside these factories, it also operates through Lafarge Agregate Betoane and the only plasterboard producer in Romania – Arcom Gips, where it holds a 90% stake, with the rest of shares owned by constructions company Arcom SA Bucharest.

In 1997, Lafarge bought the majority stake in cement producer Romcim from the former State Ownership Fund (the current APAPS – Privatisation Authority), and it has invested $300 million so far. The investment programme decided together with the Romanian authorities in the case of Lafarge Romcim was finalised and even exceeded in 2003.

The group’s global sales are worth more than 13 billion euros.
adrian.mirsanu@zf.ro