Lafarge to invest EUR80m in Poland

Lafarge to invest EUR80m in Poland
21 June 2007

Lafarge plans to invest some EUR80m in its Polish cement plants, aiming to increase their production capacity by 30 per cent, or by 1.1Mt, in one and a half years.  
Lafarge concern decided to invest after analysing the potential of the local market. In 2006, the demand for cement in Poland rose by 20 pct in annual terms. For 2007 the analysts expect a similar growth, the head of Lafarge Cement in Poland, Luc Callebat, said.  
According to estimates of the Polish association of cement producers, Poland’s cement output is seen at between 16.5Mt and 17Mt in 2007, up nearly 15 per cent YoY. In 2012 it is expected to reach almost 25Mt.  
Lafarge Cement envisage production capacity expansion in its Malogoszcz and Kujawy plants. The company will aim mainly at higher clinker productivity. The planned investment may contribute to lower prices of cement, however, it is very uncertain, company spokesman Sylwia Lesnicka said.  
Since the beginning of 2007,  LafargeCement raised the prices of its products by 10 pct to 13 per cent. The prices of other producers jumped even higher, she added.  
The UEFA European Football Championship, to be jointly hosted by Poland and Ukraine in the summer of 2012, will transform Poland into a large building site in the coming years, which will also result in a huge demand for building materials. 
Published under Cement News