Lafarge CEO discusses merger with Holcim

In a report in L'Expansion, Bruno Lafont, the CEO of French cement group 725 Lafarge, claims that while there are certainly cultural differences to overcome in the company’s merger with Swiss group 680 Holcim, the operation will allow the new entity to be a heavyweight player and the global market leader, with turnover of €32 billion (US$ 38 billion) and 130,000 employees.

The merger has forced Lafarge to sell off many of its profitable activities in Europe (notably in Germany, the UK and Romania), but it also has complementary activities, with Lafarge having a strong presence in Sub Saharan Africa while Holcim has a strong presence in Latin America. Lafont stated that the new group's research centre will be based in Lyon, and that innovation will play a key role in its strategy, notably by coming up with relevant solutions to issues such as climate change and urbanism.

Both Holcim and Lafarge have a strong focus on local management and country specific solutions, as evidenced by Lafarge's development of bricks for use in Sub-Saharan Africa manufactured from cement and earth.

Environmental concerns are of high importance in the sector (40% of CO2 emissions in developed countries come from homes) and Lafarge has a research team of 200 dedicated to developing new forms of concrete such as those that can absorb water and those that can improve insulation. Lafont, who is CEO designate of the merger company, also points towards the firm's pledge to facilitate access to decent housing for 2 million people by 2020, where the issue of affordability is of key importance.