New Lafarge Agregate-Betoane acquisitions

This year, the company, which has a four percent share on the Romanian profile market, disposes of an investment budget of €200 million for possible acquisitions, which can be increased if necessary.

Lafarge Agregate-Betoane has been following this acquisition policy since it entered the Romanian market 10 years ago, gaining from the technological advantage and the large number of companies on the market, which are pressured by competition.

"One million tons of concrete per year is a good indication of a solid position on the market. We are considering the acquisition of several companies on the concrete market," Bruno Roux, General Manager of Lafarge Agregate-Betoane, told Business Standard, adding that the company is expanding its activity in Bucharest and Iasi.

Roux said that Lafarge's annual production in other countries reaches approximately one million cubic meters of concrete, unlike production in Romania, which is only half of this value at present. But he expects to align Romania to other countries in the coming four years.

"Romania is an attractive market according to our development criteria. In the coming four years, we can become an important player and apply an extensive development policy, but this will take a huge effort, especially in terms of the human resource department, which we are currently investing significantly in," Roux said.

Lafarge Agregate-Betoane's net sales are expected to reach €50 million, give or take 15 percent, by the end of 2007, according to Roux. "We will experience a 25 percent increase in 2007, considering that the sales volume increased by 50 percent in the first quarter, due to favorable weather and mainly private construction." Roux foresees sustained increase in demand in the public sector in the following years.

The Romanian concrete market, estimated at €200 million, increased by 30 percent in 2006, and is expected to increase by one fifth in 2007 due to a construction market boom. Lafarge's main competitors on this market are Heidelberg Cement, Holcim, CCCF Bucuresti, Strabag, General Beton, Carmetaplast, and Grandemar Cluj.

The Aggregates & Concrete division makes up 38 percent of Lafarge's total sales in Romania. The group's aggregate and concrete activity is represented by Lafarge Agregate-Betoane, Lafarge Comnord, and Lafarge Betoane, in more than half of the country's counties. The Lafarge group is the largest cement producer in the world and has invested over €350 million in Romania.

Lafarge Agregate-Betoane posted net sales worth €52 million in 2006, of which €30.3 million came from the aggregate activity. The company registered a 67 percent increase year-on-year on the aggregate segment.

"One million tons of concrete per year is a good indication of a solid position on the market Bruno Roux GM, Lafarge Agregate-Betoane