Lafarge and Strabag cement deal
LAFARGE and Strabag, the largest construction company in Central and Eastern Europe, are to combine their cement activities in several countries of Central Europe.
The two companies signed an agreement last week (25 May) creating the holding company Lafarge Cement CE Holding GmbH, in which Lafarge will hold a 70% interest, while STRABAG will hold 30%.
Under the agreement, Lafarge will bring their cement plants at Mannersdorf and Retznei in Austria, Cížkovice in the Czech Republic and Trbovlje in Slovenia into the holding, while Strabag will contribute the plant they are currently building in Pécs in Hungary.
With its headquarters in Austria, the new company will have a total annual production capacity of 4.8 million tonnes of cement, all of which will be sold under the Lafarge brand name.
By joining their activities on the Austrian, Czech, Slovak, Slovenian and Hungarian markets, both companies say they expect significant synergies in terms of investment and cost.
‘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,’ said Strabag chief executive officer Dr Hans Peter Haselsteiner. ‘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.’
Bruno Lafont, chairman and chief executive officer of Lafarge, added: ‘This strategic move will allow both companies to better cross their respective understanding and knowledge of customers’ needs and producer capabilities. As a consequence, we believe it will contribute to product and services development in the near future and will be a benefit to our customers.
‘Thanks to the larger industrial network created, we will also have value-creation opportunities, notably through logistics optimization.’
Subject to approvals by the relevant competition authorities, the company is expected to become operational on 1 January 2011.
As a result of the transaction, Lafarge debt will be reduced by €77.5 million.
The two companies signed an agreement last week (25 May) creating the holding company Lafarge Cement CE Holding GmbH, in which Lafarge will hold a 70% interest, while STRABAG will hold 30%.
Under the agreement, Lafarge will bring their cement plants at Mannersdorf and Retznei in Austria, Cížkovice in the Czech Republic and Trbovlje in Slovenia into the holding, while Strabag will contribute the plant they are currently building in Pécs in Hungary.
With its headquarters in Austria, the new company will have a total annual production capacity of 4.8 million tonnes of cement, all of which will be sold under the Lafarge brand name.
By joining their activities on the Austrian, Czech, Slovak, Slovenian and Hungarian markets, both companies say they expect significant synergies in terms of investment and cost.
‘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,’ said Strabag chief executive officer Dr Hans Peter Haselsteiner. ‘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.’
Bruno Lafont, chairman and chief executive officer of Lafarge, added: ‘This strategic move will allow both companies to better cross their respective understanding and knowledge of customers’ needs and producer capabilities. As a consequence, we believe it will contribute to product and services development in the near future and will be a benefit to our customers.
‘Thanks to the larger industrial network created, we will also have value-creation opportunities, notably through logistics optimization.’
Subject to approvals by the relevant competition authorities, the company is expected to become operational on 1 January 2011.
As a result of the transaction, Lafarge debt will be reduced by €77.5 million.
