JEDDAH, 13 July 2005 — Paris-based Lafarge has announced that its gypsum activity will invest together with its partners in a new plaster plant in Saudi Arabia. The first stage of the project will start with an investment of around 10 million euros.
“Lafarge will be the biggest minority shareholder with 40 percent stake, the remaining 60 percent of the capital being held by 13 partners, among leading businessmen, commercial and industrial groups across the Kingdom,” a Lafarge press release said yesterday.
The plant will be constructed in Yanbu, near a gypsum quarry.
The launch of the construction will start in September and is expected to be operational by Q4 2006.
The new facility will operate at world-class manufacturing standards with, at first, a total capacity up to 300,000 tons of plaster per year.
The project also includes an expansion plan with other, more sophisticated products manufacturing — formulated products and ceiling tiles.
With this investment, Lafarge will offer a full range of quality plasters to serve the increasing demand of a growing Saudi market of almost 10 percent in the past five years.
Lafarge, a world leader in building materials, holds top-ranking positions in all four of its divisions — cement, aggregates and concrete, roofing and gypsum.
Lafarge employs 77,000 people in 75 countries and has posted sales of 14.4 billion euro in 2004.
“With its 300 million euro investment its production capacity will increase by 20 percent over the next two years. This will bolster its position, and help support expansion in existing markets and move into promising new markets,” Lafarge stated.