|
EBRD and Lafarge help privatise and modernise cement plants in central and eastern Europe
To assist the privatisation and development of cement and building material companies in central and eastern Europe, the European Bank for Reconstruction and Development (EBRD) is providing a US$ 90 million (ECU 72 million) equity facility to Lafarge, a leading international building materials group, under a multi-project facility (MPF). The first joint investment will be in the Kujawy plant in Poland.
"By supporting Lafarge's planned investment programme in cement and other building materials in central and eastern Europe, the EBRD's MPF will have an important transition impact. It will help the restructuring, privatisation and modernisation of essential parts of this industry," said Jacques de Larosière, President of the EBRD, signing the agreement in London today. "It will also provide much needed equity finance to a highly cyclical and capital-intensive industry."
Bertrand Collomb, Chairman and Chief Executive Officer of Lafarge, commented: "World-wide, Lafarge is committed to the development of building materials and advancement of the construction industry by bringing greater quality, safety, comfort and aesthetic appeal to our everyday lives. Central and eastern European countries are of high importance to Lafarge's corporate strategy and we are happy to bring our technical know-how and corporate culture to the region. We are pleased to sign this MPF, and the first specific investment in Poland, with the EBRD, which has an excellent track record of successful activities in the region."
The first investment under the MPF will finance the acquisition and upgrading of the Kujawy cement plant located in north-west part of Poland and a number of small investments in the ready-mix concrete and aggregates sector. The EBRD's investment in Poland under the MPF will be made through a holding company. The total project cost is US$ 145.2 million (ECU 116 million), of which the EBRD will contribute up to US$ 34 million (ECU 27 million) to Lafarge Polska SA.
Established in 1833 as a small family business, Lafarge is now a world leader in building materials, with operations in more than 40 countries and 35,000 employees. Nearly two-thirds of Lafarge's consolidated sales are generated outside France.
|
