Investment in Cement Plant

RNS Number:9869T
Lafarge
8 January 2004

                                                          Paris, 8 January 2004

           Lafarge to Invest USD40 million to double the capacity of its 
                      Chongqing cement plant in China by 2005

Lafarge has today announced its decision to build a second production line at
its cement plant in Chongqing, an autonomous city in South-Western China with a
population of 30 million, to meet the very strong growth in the local cement
market.

This USD40 million investment will increase the plant's existing cement capacity
of 800,000 tonnes p.a. by one million tonnes.

The experience gained by Lafarge in China since 1994 has paved the way for this
type of extension, which is to be carried out entirely with Chinese partners and
equipment.

The production is scheduled to start on the second half of 2005. 

Lafarge acquired a 71% stake in Chongqing for USD30 million in June 2003.

"This investment is a perfect illustration of the expansion strategy we are
pursuing in China.  Since we have been there for almost 10 years, our teams have
now acquired significant experience and expertise, enabling us to expand
rapidly, while controlling costs. This guarantees our ability to meet our
investment return criteria in what is a very competitive market" commented
Bernard Kasriel, the Group's Chief Executive Officer.

With 2,700 employees in China, the group now operates in all its business
segments and has 13 industrial facilities, including four cement plants with
capacity totalling 3.8 million tonnes prior to the Chongqing extension.

Lafarge, the world leader in building materials, holds top-ranking positions in
all four of its Divisions: Cement, Aggregates & Concrete, Roofing and Gypsum.
Lafarge employs 77,000 people in 75 countries and posted sales of Euro14.6 billion
in 2002. Additional information is available on the web site at www.lafarge.com.
 

PRESS CONTACTS:                         INVESTOR RELATIONS:

Veronique Doux:  33-1 44-34-19-47       James Palmer:  33-1 44-34-11-26
[e-mail]              [e-mail]

Brunswick                               Daniele Daouphars:  33-1 44-34-11 -51
Stephanie Tessier   33-1 53-96-83-79    [e-mail]
[e-mail]


 

 


Statements made in this press release that are not historical facts are forward-
 looking statements made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These statements are not guarantees of
future performance and involve risks, uncertainties and assumptions ("Factors"),
which are difficult to predict. Some of the Factors that could cause actual
results to differ materially from those expressed in the forward-looking
statements include, but are not limited to: the cyclical nature of the Company's
business; national and regional economic conditions in the countries in which
the Group does business; currency fluctuations; seasonal nature of the Company's
operations; levels of construction spending in major markets; supply/demand
structure of the industry; competition from new or existing competitors;
unfavorable weather conditions during peak construction periods; changes in and
implementation of environmental and other Governmental regulations; our ability
to successfully identify, complete and efficiently integrate acquisitions; our
ability to successfully penetrate new markets; and other Factors disclosed in
the Company's public filings with the French Commission des Operations de Bourse
and the US Securities and Exchange Commission including its Reference Document
COB number D03-0375 as updated on June 5, 2003 and November 17, 2003 and annual
report on Form 20-F. In general, the Company is subject to the risks and
uncertainties of the construction industry and of doing business throughout the
world. The forward-looking statements are made as of this date and the Company
undertakes no obligation to update them, whether as a result of new information,
future events or otherwise.









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