History - Lafarge Group

Lafarge Group

The beginning (1833 to 1914):

In 1833, Léon Pavin, launched an industrial lime production operation, having taken over a business acquired by his family in 1749 with the purchase of the Lafarge domain in south-eastern France, an area known for generations for the quality of its limestone deposits. The company signed its first major international contract in 1864, delivering 110,000 tonnes of lime for the construction of the Suez Canal. Lafarge opened its first central research laboratory in 1887, the Le Teil Laboratory, with which highly reputed scientists collaborated. In 1908, the Central Laboratory filed a patent for Ciment Fondu® calcium aluminate, obtained by fusing a mixture of bauxite and limestone. This new high alumina binder gradually established a reputation as a rapid-hardening cement resistant to both high temperatures and corrosion. In the years until 1914, favouring a strategy of horizontal integration, the company – now the "Société des Chaux et des Ciments de Lafarge du Teil" – set about acquiring lime and cement companies in all parts of France.

1914 - 1955 Growth on all fronts


International development began with the opening up of North African markets. Lafarge, which had operated in Algeria ever since 1866, now became the leading Portland cement producer in Algeria, and set up operations in Morocco and Tunisia. Lafarge continued to acquire companies in mainland France. With a quarter of the domestic market, the company became established as France's number one cement producer.

In 1926, Lafarge opened its first aluminous cement® plant in the United Kingdom. It diversified into gypsum in 1931, and developed Superblanc, a new cement, in 1932. By 1939, Lafarge was the leading cement producer in France. After 1945, Lafarge gained a new lease of life with the arrival of Alfred François at the helm, the Marshall Plan and the post-war rebuilding boom: production doubled over the next ten years.


1955 - 1981 Mergers, acquisitions, developments


In 1956, Lafarge constructed its first North American cement plant, creating Lafarge Cement of North America with the start-up of the Richmond plant in Canada. In 1959, Lafarge began operations in Brazil. By the end of the 1960s, Lafarge Canada had become the third largest cement producer in the country, with annual production capacity of 900,000 tonnes. In 1980, a merger agreement was signed between Lafarge and Coppée, the newly formed group becoming Lafarge Coppée. Acquisitions in the United States and Canada established Lafarge Coppée as the number one cement producer in North America. The size of the Group rose from 12,000 to 17,000 employees.


1982 - 1990 The conquest of Europe

During the 1980s, with the construction of a single market representing more than 300 million inhabitants, the Group chose to expand its business in Europe. Lafarge first turned to Germany, raising its stake in Portland Zementwerk at Wössingen to 83%. Through the purchase of the Swiss company, Cementia in 1989, the Group acquired interests in Asland (Spain), Aslan (Turkey) and Perlmooser (Austria). Then followed the investments in Eastern Europe: East Germany, the Czech Republic (1991), then Poland, Romania, Russia and Ukraine. The agreement with the East German cement producer, Karsdorf, came even before German reunification had been mooted.

1990 - 2001 Lafarge becomes world leader in building materials


1994 saw Lafarge take a foothold in China. Today, all four of the Group's Divisions operate there, and there have been developments throughout Asia (1998: Indonesia and the Philippines; 1999: India and South Korea). The Group's expansion in Poland began in 1995 with the acquisition of a 75% stake in Kujawy. Within six years (2001), 4 entities representing all four Divisions were active in the country.

Lafarge acquired Redland in 1997, positioning itself more strongly in Aggregates and Concrete and gaining entry onto the Roofing market.

Thanks to the acquisition of Warren in Canada in 2000, Lafarge became one of the leading aggregates producers in North America. Lafarge focused on its main four Divisions, and divested its Specialty Products businesses, which became Materis.

Lafarge was the first industrial group to conclude a partnership agreement with WWF (World Wildlife Fund for Nature).

In 2001, following the acquisition of Blue Circle, Lafarge became the world's leading cement producer. Numerous acquisitions and joint ventures in all four Divisions, and on every continent, particularly Asia, have continued to consolidate its world leadership position. In July, 2001, Lafarge was introduced onto the New York Stock Exchange (NYSE).

2001-2004: A global growth


In 2002, the Gypsum Division acquired the plasterboard businesses of Gyproc (a subsidiary of British PlasterBoard) in Germany, Poland and Central Europe.

The Cement Division inaugurated in China the new Dujiangyan cement plant, the first greenfield cement plant for the Group in China, and acquires a 70% interest in the Chongqing cement plant.

The Cement Division acquired two new cement plants in Slovenia and in Serbia.

In 2003, the Cement Division enters Australia and had constructed a new cement plant in Mexico, near Mexico City.

In 2004, the Group:

• Acquired in Ecuador Cementos Selva Alegre.
  
• Acquired The Concrete Company of Columbus, Georgia, United States with operations in both cement and concrete.
  
• Acquired Hupfer Holdings with operations in France and Switzerland in aggregates activities.
  
• Acquired an additional 10.2% stake in Lafarge Halla Cement, in South Korea.
  
• Acquired an additional 14% stake in our gypsum operations in Lafarge Gypsum in Asia, in a joint venture with Boral.
  

Lafarge Group's Growth Strategy

To maintain its leadership in construction materials, the Group is aggressively following a strategy of growth and competitiveness. This includes international development and expansion in all of its businesses. Lafarge Group has established its presence or consolidated its position, alone or with local partners, in countries as diverse as Egypt, Uganda, Mexico, South Korea, Venezuela, Brazil, Jordan, Poland, Germany, Argentina, Turkey, Canada, United States, Australia and Ukraine. With operations on every continent, Lafarge is committed to a strategy of international development. It aims to simultaneously, increase its business in countries with high market growth potential, and further develop products enjoying growth in mature markets, capitalizing on every opportunity and offering synergies with existing businesses.

For More Information visit www.lafarge.com