Lafarge said it will continue investing in China in research, namely in research, production and the creation of new partnerships, according to the company’s chief.
Bruno Lafont, chairman and chief executive of the French cement major told the People’s Daily China that the company will invest using a “value-growth” model. It will prioritise its existing position in southwest China, although it may expand to other parts of the country, he added.
On China’s overcapacity issues, Lafont said that such challenges have appeared in other growing markets before and that inefficient and unsustainable players will eventually be phased out.
Lafarge owns 55 per cent of Lafarge Shui On which has operations in southwest China spanning the provinces of Chongquing, Sichuan, Yunnan and Guizhou. For the first three months of 2015, Lafarge reported that its Chinese volumes rose by five per cent but prices remained under pressure.