Lafarge takes 35% stake in Algeria’s Meftah

Lafarge has acquired a 35% stake in the Meftah cement plant, in the Algerian capital Algiers market, together with a 10-year management contract, for € 43,5 million.

According to a statement on its website, the company is to implement an investment program to modernize the plant. Capacity will be increased from 0,8 to 1,1 million tonnes by 2010.

The plant's environmental performance will also be improved and a "major" training program for the plant's employees will also be started.

Lafarge said the acquisition will allow it to participate in the presidential housing and infrastructure program and meet the "very strong" demand for cement due to the country's development requirements.

The move means Lafarge is now one of the leading companies in Cement and Aggregates & Concrete in Algeria following its acquisition of Orascom Cement in January this year. With two plants boasting a cement capacity of 8 million tonnes, six concrete plants, five quarries and a plasterboard facility, Lafarge employs 2100 staff in Algeria.

Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 90000 employees in 76 countries, Lafarge posted sales of € 17,6 billion and net income of € 1,9 billion in 2007.

Lafarge is the only company in the construction materials sector to be listed in the 2008 ‘100 Global Most Sustainable Corporations in the World'.