RESTON, VA – Lafarge Corporation (NYSE, TSE & ME: LAF), North America's largest supplier of construction materials, announced that it has completed the acquisition of a cement plant in Seattle from Holnam Inc.
The Seattle plant has an annual production capacity of 420,000 tons of clinker, an intermediary product in the portland cement manufacturing process. It becomes the 15th full-production facility in Lafarge's cement manufacturing network, the largest in North America. The price and terms of the acquisition, which included a limestone quarry and two cement distribution facilities, were not disclosed.
"This acquisition, along with the expansion of our cement plant near Vancouver, British Columbia, that will be completed in mid-1999, will give Lafarge tremendous manufacturing and distribution flexibility, allowing us to serve a broad base of customers in the Pacific Northwest," said Lafarge Corp. President and CEO John Piecuch. "We believe this region has excellent long-term growth prospects." He noted that federal aid for road and highway construction in this region is expected to jump an average of 37-50 percent annually for the next five years.
Lafarge Corporation is North America's largest diversified supplier of cement, concrete, aggregates and other materials for residential, commercial, institutional and public works construction. The company operates 15 cement plants, approximately 500 construction materials operations, two gypsum wallboard manufacturing facilities and other businesses in 44 states and all provinces of Canada, with 1997 sales of $1.8 billion. The company's majority shareholder is Lafarge S.A. of Paris France. The Lafarge Group is the world leader in building materials with operations in more than 60 countries and sales in excess of $10 billion.
This release may contain forward-looking statements based upon current expectations that involve a number of business risks and uncertainties. Although the company believes that these statements are based upon reasonable assumptions, there can be no assurance as to future results. The factors that could cause results to differ materially include, but are not limited to, national and regional economic conditions, levels of construction spending in major markets, the supply/demand structure of the industry, unfavorable weather conditions during peak construction periods, and other risks as described in the company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities Exchange Commission.