Lafarge adjusts its assets in Central Europe

21 September 1999

LAFARGE ROMCIM, the Romanian subsidiary of the Lafarge Group, has signed a letter of intent for the sale of its Alesd plant, located in the north-east of Romania, to the Holderbank group. This plant, which recorded sales volumes of 450,000 tonnes in 1998, supplies roughly 10% of the Romanian market.

When this operation has been completed, Lafarge Romcim will possess three large-capacity cement plants in Romania, situated in Medgidia, Tirgu Jiu and Hoghiz, giving it domestic market share of roughly 30%. The divestment is subject to approval by the appropriate authorities.

Meanwhile, Lafarge has recently signed an agreement with the Ukrainian National Privatization Fund, under the terms of which the Group will purchase a further stake of 30% in the capital of the Ukrainian company Mykolaiv Cement. As a result, Lafarge will hold an 82% interest in the company.

Mykolaiv Cement operates a cement plant located near Lviv, in western Ukraine, with annual capacity of 3.1 million tonnes. Ukraine has high potential because of the size of its population (50 million inhabitants) and the needs that remain to be satisfied. For Lafarge, this is therefore an investment that should prove promising in the long term.

World leader in construction materials, the Lafarge Group employs 66,000 people in 65 countries, and generates annual sales of 10 billion euros.

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