HISTORY OF LAFARGE

and argillaceous, and yielded an

CEMENT.

eminentlyhydraulic lime.
In 1864 Lafarge signed its first
international contract for the
delivery of 110,000 tonnes of lime

Lafarge is a French industrial

to the Suez Canal construction

company specializing in three

project. In 1980 Lafarge joined

with the Belgian coal, coke and
fertilizer company Coppe to
become SA Lafarge Coppe.
Lafarge purchased a plant from

major products:

the National Gypsum Company in

cement, construction aggregates,

early-1987. Ten years later, it

and concrete. The company has

bought Redland plc, a leading

become a world leader in building

British quarry operator.

materials.

In 1999, Lafarge acquired 100%

On 2015, July 10, Lafarge merged

with Holcim, a Swiss cement
company. On July 15, the new
company was officially launched
around the globe under the name
of LafargeHolcim, creating a new
leader in the Building Materials
sector

shareholding in Hima Cement

Limited, the second-largest
cement manufacturer in Uganda,
with installed capacity of 850,000
metric tonnes annually, as of
January 2011. In 1999, Lafarge
entered the Indian market
through its cement business,with
the acquisition of Tata Steel's

Lafarge was founded in 1833 by

cement activity.This acquisition

Joseph-Auguste Pavin de Lafarge

was followed by the purchase of

in Le Teil (Ardche), to exploit the

the Raymond Cement facility in

limestone quarry in Mont Saint-

2001. In 2001, Lafarge, then the

Victor between Le Teiland Viviers.

world's second largest cement

The limestone is white

manufacturer, acquired Blue

Circle Industries (BCI), which at

the time was the world's sixth

Focusing on key issues for our

largest cement manufacturer, to

Group, as well as our

become the world leader in

stakeholders' expectations, we

cement manufacturing.

have identified ambitious,

quantified targets for priority
action in our Materiality Matrix.
With our Sustainability Ambitions

VISION & STRATEGY

we aim to make a net positive

contribution to society and to

For Lafarge, the ambition of

contributing to building better

nature, minimizing our

environmental footprint while

cities entails not only improving

maximizing the value created for

the quality of life of city-dwellers

all our stakeholders.

but also creating value for all our

stakeholders: our employees,
shareholders, customers,
governments and communities
situated in the vicinity of our
sites.
Sustainability Ambitions
2020: our roadmap to make a
net positive contribution to
society and nature
Our Sustainability Ambitions
2020 is a comprehensive and farreaching program, covering all
dimensions of sustainable
development - social, economic
and environmental - and
considering them as a whole.

The Lafarge Sustainability

Compass: further integrating
sustainable development into our
strategy
To help our countries leverage
sustainable development to
further their business strategy,
we have developed a unique
methodology called the Lafarge
Sustainability Compass.
This methodology allows our
countries to :

First, assess their

maturity level in ten
areas: water, biodiversity,
health & safety,
employment, climate
change & energy, basic
needs, waste & materials,
clean environment, human

capital, and ethics &

governance.

Then, identify the key

issues for their business
and their stakeholders.
Finally, develop action
plans in their priority
areas, after consolidating
all this information.

ALL STAKEHOLDERS
-The Lafarge Group is committed
to:
generating value for our
clients,
delivering the value
creation that our shareholders
expect,
-giving our employees

BECOMING THE UNDISPUTED

every opportunity to contribute

WORLD LEADER IN BUILDING

and develop their talents,

MATERIALS
Published for the first time in
1997, the Lafarge Group's

-contributing to building a
better world for our communities.

Principles of Action inspire the

THE LAFARGE WAY

-The Lafarge Way is built around 3

behavior of the Group's

concepts.

employees around the world.

They are based on 3 pillars: our
vision, our commitment and the
Lafarge Way.
THE LAFARGE GROUP IS
COMMITTED TO:
- Offering our customers the
best in
- innovative materials and
reliable products and services,
- reinforcing our position as
the world leader in relation to our
suppliers, employees, customers
and shareholders.

-Making our employees

successful: Lafarge aims to
enable each individual to
succeed.
-Delivering continuous
performance improvement:
Lafarge continually strives to
optimize its products and
services.
-A multilocal
organization: Lafarge's goals are
local but remain integrated into
our global approach.
COMMITTED TO HEALTH, SAFETY,
AND SUSTAINABILITY

UPHOLDING COMMITMENTS TO

Health & Safety

-Health and safety are absolute

priorities for Lafarge. In fact,
Lafarge has implemented a
stringent safety policy for its
employees and subcontractors. It
also participates in public health
programs that benefit both

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-Lafarge aims to be among the

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safest companies in the world

and encourage safe behavior.
-Learn more about our health and
safety initiatives

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Lafarge Republic Inc

(LRI: Philippine Stock
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LRI: PM Advanced Stock Chart

STOCK PICKS OF LAFARGE

Lafarge Republic Inc (LRI) Details
Lafarge Republic, Inc., together
with its subsidiaries,
manufactures, develops, exploits,
and sells cement, marble, and
building materials in the
Philippines. The company offers
Portland cement; blended

In a report to the stock exchange

last week, the cement maker said
it booked P3.7 billion in
consolidated net income last year,
higher by 30%, as strong demand
for cement for public and private
construction projects pushed up
net sales by 16% to P23 billion.

cement; masonry cement; and

aggregates that are primary
ingredients in concrete and
asphalt production. It also
manufactures and distributes
cement formties, concrete
aggregates, and concrete
products for the building and
construction industry. The
company sells its products
through distributors, as well as to
contractors, developers, pre-cast
manufacturers, ready mix
concrete companies, asphalt
manufacturers, and road
contractors. The company was

TOWS ANALYSIS

formerly known as Republic

- STRENGHT

Cement Corporation and changed

its name to Lafarge Republic, Inc.
in June 2012. Lafarge Republic,
Inc. was incorporated in 1955 and
is based in Makati City, the
Philippines.

1. One of the Market Leaders in

cement industry worldwide
2. Operations in 50+ countries
makes it one of the global leaders
in construction and real estate

3. Strong supply chain makes its

-OPPORTUNITIES

operations effective
1. Acquisitions of smaller players
4. Over 60,000 people are

would make them a stronger

employed in the organization

brand
2. Can target other competitors

5. The product portfolio includes

customer base

Cement, Construction aggregates,

asphalt production and concrete

2. Strategic marketing and

advertising would help increase

6. Reshuffling in the top

brand recall and credibility further

management has resulted in a

more focused and strategic
business approach

-THREATHS

7. Consistently improving

1. Challenges in post merger

financial trends have boosted the

operations can affect business

business operations

2. Strong competition in all

operating countries

8. The company has done major

innovations and made landmark

3. Increasing costs of operations,

monuments across the world in

rising furls prices etc would all be

also places like Greece, South

a threat

Korea
COMPETITORS
-WEAKNESSES

1. Holcim

1. Strong competition means

2. CEMEX

limited market share growth

3. Heidelberg Cement
2. Instances of legal cases and
alleged violations have
sometimes hurt the brand name

4. Euro cement Group

5. CRH plc

-Detailed and comprehensive site

CUSTOMER OBJECTIVES

audit and energy assessment

- With rising energy costs,

audit carried out

accounting for approximately 70%

-Complete energy management

of production expenditure,

solution, integrating process and

Lafarges primary objective

energy information for use from

included realizing reductions in

the operator level to the

energy consumption levels and

enterprise level

costs. In addition, they were faced

-A solution that both reduces

with increased government

energy consumption as well as

regulations, reporting mandates

energy costs

and environmental pressures and

-Energy assessment tools vital in

concerns. -Operationally, the

the provision of regulatory data

Dujiangyan plant struggled with

and ongoing cost effectiveness

limited process measurement

-Customizable system functions

tools proving it challenging to

such as kiln coach report

identify energy saving

-In-depth segment (cement)

opportunities and continuous

process and application

improvement strategies. With idle

knowledge

equipment, such as large air

-Specific process improvements

compressors and numerous

i.e. air compressor optimization

conveyor belts left running, power

- Remote access for ease of

supply costs were rising.

technical support and energy

-Economic constraints limited

analysis

CAPEX availability to make

-Onsite service and support

significant improvements, which

carried out by Schneider Electric

drove them to look at their

energy consultant

operational processes to achieve

-Collaboration and shared

efficiency and financial gains.

objectives between Lafarge and

Schneider Electric project team

CUSTOMER BENEFITS
key success factors included:

MAIN INGREDIENTS AND

FUNCTION OF LAFARGE CEMENT.

Excessive presence of lime

INGREDIENT

cause cement to expand

-Lime

and disintegrate.

-silica
-aluminum

Silica: Silicon dioxide is

-magnesia

known as silica, chemical

-iron oxide

formula SiO2.

-calcium sulphate

o Sufficient quantity of

-sulphur trioxide

silica should be

-alkaline

present in cement to
dicalcium and
tricalcium silicate.

FUNCTIONS.

o Silica imparts strength

Function of Lime: Lime is

to cement.

calcium oxide or calcium

hydroxide.

o Silica usually present

to the extent of about

30 percent cement.

Presence of lime in a
sufficient quantity is
required to form silicates
and aluminates of calcium.

Deficiency in lime reduces

the strength of cement.

Deficiency in lime causes

cement to set quickly.

Excess lime make cement

unsound.

Alumina: Alumina
is Aluminium oxide.
Chemical formula is Al2O3.
o Alumina imparts quick
setting property to
the cement.
o Clinkering
temperature is
lowered by the

presence of requisite

tricalcium

quantity of alumina.

aluminoferrite.

o Excess alumina

o Tricalcium

weaken the cement.

aluminoferrite imparts
Hardness and
strength to cement.

Magnesia: Magnesium
Oxide. Chemical formula is

MgO.

Calcium
Sulphate: Chemical

o Magnesia should not

formula is CaSO4

be present more than

2% in cement.
o This is present in

o Excess magnesia will

cement in the form of

reduce the strength of

gypsum(CaSO4.2H2O)

the cement.
o It slows down or
retards the setting

action of cement.

Iron oxide: Chemical

formula is Fe2O3.
o Iron oxide imparts
color to cement.
o It acts as a flux.
o At a very high
temperature it
imparts into chemical
reaction with calcium
and aluminum to form

Sulphur
Trioxide: Chemical formula
is SO3
.
o Should not be present
more than 2%.
o Excess Sulphur
Trioxide causes
cement to unsound.

Alkaline:

o Should not be present

more than 1%.
o Excess Alkaline matte
r causes
efflorescence.