Lafarge and Strabag to form cement company in central Europe

Lafarge, the world's leading manufacturer of building materials, and Strabag, the biggest building company in central and east Europe, signed the agreement on May 25 on formation of company Lafarge Cement CE Holding with the headquarters in Austria.

Lafarge will contribute its cement plants in Manersdorf and Recnai in Austria, Cížkovice in Czech Republic and Trbovlje in Slovenia, while Strabag will put in the plant it is currently building in Pečuj in Hungary. Lafarge's share in the new company will amount to 70%, while 30% will be in possession of Strabag.

U očekivanju odobrenja nadležnih organa za zaštitu konkurencije, ovo preduzeće bi trebalo da počne sa radom 1. januara 2011. godine. U potpunosti će ga konsolidovati "Lafarge", a po osnivačkom kapitalu "Strabag".

Lafarge Cement CE Holding will have a total annual production capacity of 4.8m tons of cement. This building material will be sold in all countries under the Lafarge trademark.

By joining their activities in Austrian, Czech, Slovakian, Slovenian and Hungarian market, these two companies expect to create a significant synergy when it comes to investments and costs.

- The deal helps us to secure exactly the amount of cement we need in a year, namely 1.5 million tonnes, in just those countries in which we need it. It also allows us to achieve economies of scale in procurement and administration and to profit from the know-how of the global cement market leader - said Strabag Chief Executive Hans Peter Haselsteiner.

- The joint venture will join the strengths of the two leaders in their respective markets. This strategic move will enable both companies to exchange the experiences concerning the understanding and recognition of the needs of buyers and the possibilities of manufacturers. As a result, we believe it will contribute to product and services development in the near future and will be a benefit to our customers. We will also have value creation opportunities, notably through logistics optimisation - said Lafarge Chief Executive Bruno Lafont.