The international building materials group Lafarge has just signed a joint venture agreement with the Beijing Xingmi Merchant Service Centre, a Chinese municipal company in charge of industrial projects, for the development of a greenfield aggregates quarry in Beijing.
The new company, the Beijing Xingmi Lafarge Aggregates Company Ltd, will develop 18 million tons of aggregates reserves and the production unit will have an annual production capacity of 1.2 million tons starting in 1999. Lafarge which will invest US$ 5 million in the joint venture will be the majority shareholder and operator. The new quarry located in Miyun County 50 km north east of Beijing is well placed to serve the growing Beijing market (a total market of 60 million tons of aggregates per year).
As part of the company's international growth strategy, Lafarge is investing with Chinese partners in the long term development of China's building materials industry in line with national development priorities. Since 1994 Lafarge has committed around US$100 million in investments in China and recently decided with its partners to invest nearly US$150 million in the construction of a new cement plant in Chengdu (Sichuan province). These include one cement plant and one concrete plant in Beijing, a newly opened plasterboard joint venture in Shanghai as well as three concrete roofing tile plants in Guangdong, Zhejiang and Beijing.
A world leader in building materials, Lafarge has 65,000 employees in more than 60 countries, a global turnover of around US$10 billion, and holds leading positions in each of its core businesses: cement, concrete, aggregates, gypsum, roofing and specialty products.