Lafarge Shui On Cement announces today the inauguration of a new production line at the Dujiangyan cement plant in Sichuan province in south-west China. Representing a total investment of US$58m, the new line will double the production capacity of the Dujiangyan plant, taking it to 3Mt, from 1.4Mt. This investment will be value-creating for the Group as from 2007.
The Dujiangyan plant is ideally located to supply the market of the city of Chengdu. It is one of the most modern cement plants in China and complies with the Group’s strictest international quality and environmental protection standards. The new production line will enable the Group to meet the very strong growth in the local cement market.
With this investment, Lafarge pursues its development in China, the world’s largest cement market, representing about 1bn tons of cement a year, or half the world market. This capacity increase is part of the Group’s development strategy focused on fast-growing markets, and bolsters the leadership position of Lafarge Shui On Cement in the south-west region of China.
Lafarge entered the Chinese market in 1994 and is now present in all of the Group’s businesses (Cement, Aggregates & Concrete, Gypsum, and Roofing), with about 16,000 employees.
In 2005, Lafarge signed a joint venture partnership with Shui On Construction and Materials Ltd. to create Lafarge Shui On Cement. This joint venture is now the market leader in south-west China with a total production capacity of around 20Mt.