Lafarge ups stake in cement businesses

French building materials giant Lafarge has increased its stake in cement activities in India, South Korea and Japan by investing $141 million.

The company has announced that it is buying out minority interest held by State of Wisconsin Investment Board (SWIB) in these cement companies as per a partnership agreement.

Lafarge has upped its stake in Lafarge India Pvt Ltd by 23.6 per cent, taking its total stake to 94.4 per cent.

Lafarge India Pvt Ltd is the leading player in eastern India having a total cement production capacity of five million tonne. It has two cement plants and a grinding station, this unit supplies around 20 per cent of the eastern Indian market, according to a press release.

Lafarge moved into India in 1999 by acquiring two plants from the Tata group. It expanded further in India by acquiring the Raymond group's cement plant in January 2001.

In the South Korea based Lafarge Halla Cement, Lafarge has increased its holding by 20.3 per cent stake taking its total stake to 71.4 per cent.

Lafarge Halla Cement is South Korea's fourth-largest cement producer, with three industrial sites and the capacity to produce 7.5 million tonne of cement per year.

While Lafarge Japan Holdings is now a wholly owned subsidiary, with Lafarge buying out 43 per cent stake, taking its holdings to 100 per cent.

Lafarge Japan Holdings owns 39.4 per cent of Lafarge Aso Cement Ltd, which has two cement plants and total cement production capacity of 3 million tonne.

In September 2001, Lafarge moved into the Japanese market by acquiring a 39.4 per cent stake in Aso Cement Co via its majority-owned subsidiary Lafarge Japan Holdings Ltd.

This unit houses the assets of the Aso group's cement division, particularly two cement plants with total capacity of three million tonne.