Lafarge Shui On profits down, China
Lafarge Shui On Cement Limited, a joint venture between Lafarge and Shui On Construction and Materials Limited (SOCAM), in 2010 achieved HKD105m (US$13.5m) in profits attributable to shareholders, down 66.34% YoY.
According to SOCAM’s annual report, the poor performance of Lafarge Shui On Cement resulted from the rising cost and stiffer competition in major markets. Lately, the CEO of SOCAM disclosed that the Hong Kong-listed company has the plan to withdraw from Lafarge Shui On Cement gradually.
Considering the gloomy performance of the joint venture, the possibility cannot be ruled out for SOCAM to sell a 45% stake in Lafarge Shui On Cement to the foreign partner. In terms of the market share in Central and Western China, Lafarge Shui On Cement is no longer within the top-10 cement enterprises. Published under Cement News
