Lafarge has announced that it has formed a joint-venture with Tong Yang Major Corporation, a Korean-based cement company. The new company will be called Tong Yang Cement Co., Ltd.
Under the terms of the joint-venture, a Korean associate of Lafarge will own 25% of total shares, through an investment of USD 100 million, and Tong Yang Major Corporation 75% of the shares by way of in-kind contribution and business transfer. Lafarge's shareholding in its associate is 40%, therefore contributing USD 40 million.
The newly created company has a cement production capacity of 11 million tonnes per year, in one cement plant. This strategic alliance will allow collaboration in every field of cement business including export and domestic sales, production, mine development, etc.
Bertrand Collomb, Chairman and Chief Executive Officer of Lafarge, stated : "Through this investment, Lafarge is increasing its presence in the promising Korean market. The limited amount of the investment and the expected synergies between our Korean associate and Tong Yang Cement Co., Ltd make it an attractive investment."
Established in 1957, Tong Yang Major Corporation is the oldest as well as the second largest producer of cement in Korea and operates cement and cement-related products facilities located throughout the country. Tong Yang Major Corporation is also involved in construction activities, international trading and financial services.
In addition to the above mentioned participation in cement, Lafarge is the leader in Korea in the gypsum wallboard sector with plants in Yosu and Ulsan.
Lafarge is the world leader in building materials. It has 85,000 employees in 75 countries. Lafarge is world number one in Cement and holds top-ranking positions in its three other Divisions : Aggregates & Concrete, Roofing and Gypsum. In 2000 the Group recorded sales of Euro 12.2 billion.