Lafarge Halla Cement, the 39.9%-owned Korean cement subsidiary of Lafarge, has just sold its minority equity interest in the joint venture “Tong Yang Cement Co, Ltd.”, in favorable conditions, to Tong Yang Major Corporation. The transaction price amounted to USD138 million.
Tong Yang Cement Co, Ltd. is a joint venture formed in November 2001 between Tong Yang Major Corporation, a Korean conglomerate, and Lafarge Halla Cement which owned 25% of share capital for an initial investment of USD100 million. Tong Yang Major Corporation owned the remaining 75% of share capital.
“South Korea is an attractive market for the Group, which, thanks to its stake in Lafarge Halla Cement, holds a strong position and has a solid base for future growth in cement. We are prepared to reinforce our presence on this market, in so far as our profitability criteria are met” said Lafarge CEO Bernard Kasriel.
Lafarge is the world leader in building materials, and employs 77,000 people in 75 countries. The Group holds top-ranking positions in all four of its Divisions: Cement, Aggregates & Concrete, Roofing and Gypsum. Lafarge posted sales of €14.6 billion in 2002.
Statements made in this press release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions ("Factors"), which are difficult to predict. Some of the Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the cyclical nature of the Company's business; national and regional economic conditions in the countries in which the Group does business; currency fluctuations; seasonal nature of the Company's operations; levels of construction spending in major markets; supply/demand structure of the industry; competition from new or existing competitors; unfavorable weather conditions during peak construction periods; changes in and implementation of environmental and other governmental regulations; our ability to successfully identify, complete and efficiently integrate acquisitions; our ability to successfully penetrate new markets; and other Factors disclosed in the Company's public filings with the French Commission des Opérations de Bourse and the US Securities and Exchange Commission including its Reference Document COB number D03-0375 as updated on June 5, 2003 and November 17, 2003 and annual report on Form 20-F. In general, the Company is subject to the risks and uncertainties of the construction industry and of doing business throughout the world. The forward-looking statements are made as of this date and the Company undertakes no obligation to update them, whether as a result of new information, future events or otherwise.