Lafarge document

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Lafarge document
Number 7
May 2009
Ethics:
a rising stock
Cottonseed oil,
the flower
of biofuels
Construction
sites: tailor-made
services
© Jacques Grison
BRUNO LAFONT
Chairman and
CEO of Lafarge
EXPLORING
A WORLD ON THE MOVE
06
Ethics: a rising stock
10
Shigeru Ban, all the materials in the world
12
Marc Mimram, city between two riverbanks
MOVING FORWARD
IN OUR BUSINESSES
16
Tailor-made services that make the difference
22
The second life of materials
26
A responsible employment policy
32
Algeria: a huge leap forward
CONTRIBUTING
TO A SUSTAINABLE WORLD
38
East Africa: road safety makes headway
with transporters
40
Brazil: cottonseed oil, the flower of biofuels
42
A global commitment to sustainable construction
44
Spain: on the threshold of the congress hall
t
he huge challenge facing companies today is one of profitability and embracing
change. In light of today’s unprecedented economic and financial situation, Lafarge
must demonstrate its ability to react and adapt. The Group has set new targets to
cut its level of debt, including new actions to reduce costs and limit investments.
We remain focused on the dynamics that enabled us to exceed the objectives of
the “Excellence 2008” program and confirm our strategy, which is based on growth
in emerging countries and innovation leveraged by our R&D strength.
This strategy has already borne fruit and, thanks to the geographic spread of our
portfolio, will help us to take worldwide advantage of the renewed confidence
and growth stimulated by governments’ plans to re-launch the global economy,
which all include major infrastructure projects. It also enables us to
support architectural creativity
with innovative products, to anticipate new requirements and to
think about other uses for our
materials.
It is thanks to this capacity for innovation and operational performance that we
shall be able to support infrastructure requirements, of which there are very
many in the years ahead, with sustainable solutions that respect our planet. It
is in periods of uncertainty, such as the one we are experiencing today, that
Lafarge must restate the values of respect and responsibility that shape its character. The fact that a company’s performance can now be measured not only in
terms of financial results, but also based on social, ethical and environmental
criteria, reinforces the convictions that we have always maintained.
In the period of uncertainty we
are experiencing today, the
Group must restate its values.
STRIVING
TO ATTAIN OUR FULL POTENTIAL
48
Highlights
50
Very strong operational results in 2008
BRUNO LAFONT
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expl oring
© Marc Mimram Architecte
a world on the move
“The Accommodating Structure”
designed by Marc Mimram,
in New York (United States).
© Image Source - Leonard Pine
EXPLORING A WORLD ON THE MOVE
Nowadays, performance is not only measured in terms of financial
results, but also in terms of social, ethical and environmental
criteria. It is a change that has an impact on the strategic choices
of financial markets, encouraging socially responsible investment
funds to appear.
Ethics: a rising stock
i
s a company that is committed to a policy of sustainable development,
concerned about reducing its ecological footprint, enhancing the skills
of its workforce and adopting ethical management policies, more
profitable and competitive than another in the long term? This is currently
the opinion of many investors (pension funds, banks and insurance
companies, etc.). Socially Responsible Investment (SRI) is not, however,
a new idea. The first ethical funds appeared in the 1920s. Their principles were based on excluding companies whose activities were considered to be immoral (weapons sales, businesses connected with gambling,
tests on animals, etc.). Today, ethical criteria embody the strategic choices
and the way that companies develop. Thus performance is no longer
assessed by a company’s financial position alone: it also has to do with
its ability to adopt coherent policies in terms of environment, to demonstrate transparency in its management and to provide appropriate
solutions for social issues. In 2007, more than 200 investment funds had
therefore adopted Principles for Responsible Investment (PRI), as set
out by the United Nations a year earlier.
A fruitful dialog
In a rapidly evolving financial
market, ethical investment
funds provide evidence
of sustainable development
models.
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Following an in-depth analysis of financial and management models
conducted by specialist credit rating agencies, companies that do not
meet the criteria laid down are sometimes contacted by investors, who
instigate a dialog in order to persuade them to improve their processes.
“We encourage management to follow such a course of action when it
may have a positive effect on their results. For example, when a group is
acquiring several other companies, we recommend that it requests an
upfront analysis of their environmental approach. In this way, the •••
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© Romuald Meigneux / Sipa
EXPLORING A WORLD ON THE MOVE
Questions for Nicole Notat,
founder and president
of the European credit
rating agency, Vigeo
How does one go about rating
a company’s social and environmental
responsibility?
RESPONSIBLE STOCK INDEXES
A stock index shows market trends, up or down, and serves
as a reference point for measuring the performance of funds. Today,
International Labor Organization
(ILO) in Geneva, Switzerland.
there are about a dozen responsible market indexes, most often
focused on investment areas (Europe, Asia, etc.) or by type
of business (high or low market capitalization). However, some
are based on more specific criteria (such as the way the company
is managed, the battle against climate change, etc.).
• The DJSI (Dow Jones Sustainability Index) was launched
in 1999 based on ratings from the Swiss company SAM. In 2001,
SAM extended the scope of its analysis to Europe, by creating
a European index, the DJ EURO STOXX Sustainability Index, which
identifies stocks in the Dow Jones STOXX 600 Index.
• The FTSE4Good Index was established in 2001 by the UK ethical
research agency EIRIS.
• The ESI (Ethibel Sustainability Index) has, since 2002, been
based on analyses by the Belgian ethical consultancy firm Eth bel.
purchase price can include adjustments necessary for bringing it into
line,” explains Karina Litvack, manager of governance and sustainable
investment at F&C Management. Being part of and maintaining a position
in a responsible fund requires companies to be constantly vigilant. On
the other hand, belonging to such a fund provides reassuring security
for financing projects, as well as a significant benefit in terms of image.
“To be regarded as a responsible company is a significant marketing
asset, all the more so because consumers are listening to pressure groups
more and more,” underlines Karina Litvack.
•••
• The ASPI (Eurozone and Global Indices) was established
in June 2001 by the French company Vigeo. It brings together
Forward planning to make the difference
120 companies selected from some 300 stocks of the Dow Jones
Quite apart from ethical considerations, the majority of investors consider
that anticipation of evolving standards enabled by these funds is very much
in companies’ interests. “In terms of environment, as with social welfare,
regulations are multiplying. However, a well-programmed investment turns
out less costly than a restricted one and a forward-looking group reaps
the fruits of its efforts more quickly,” explains Dominique Blanc, SRI
research manager at Novethic1. In fact, enlightened management enables
problems to be uncovered more quickly and a voluntary environmental
policy delivers substantial energy savings. When it is not a source of innovation, “a company committed to producing goods more compatible with
the environment creates new processes and new products, which are growth
and leadership factors,” says Nicole Notat, president of the rating agency
Vigeo. In times of crisis, responsible conduct often ends up paying for itself:
EURO STOXX.
• The Calvert Social Index has been based since 2000 on analyses
by the American firm Calvert. It is made up of more than
600 companies selected from the largest companies by market
capitalization on the NYSE and on Nasdaq-Amex.
• The KLD Domini Social Index 400 (DSI) was set up in 1990 by
the credit rating agency KLD, with 400 major company stocks.
• The Kempen SNS Smaller Europe SRO, created by Kempen
Capital Management and analyzed by SNS Asset Management, has
been the leading index representing the performance of companies
with low market capitalization since 2003. I
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“as opposed to a “short-termist” company that neglects its basic principles,
the company that values the skills of its workforce, for example, can count
on being able to mobilize them in order to secure its long-term survival.”
Promising growth
Although the SRI fund sector is still modest compared with the scale of
the Stock Exchange, since such funds currently represent around 1.5%
of total market capitalization, the volume of ethical investment is
increasing rapidly, by approximately 30% per annum. “Ten years ago,
few people knew that SRI existed. Now we can expect the financial
crisis to have a major impact as a catalyst for the development of this
approach to investment, since SRI meets the contemporary demands
of ‘back to basics’. In time, a discredited company will have major
problems in attracting capital,” predicts Dominique Blanc. And what
about the real performance of socially responsible investment?
“Although SRI funds provide little return in the short term, at least they
are not yielding a negative return,” confirms Dominique Blanc.
“Focused on human resources, the AXA fund, WF Human Capital, is
recording better performance than those of the benchmark index2,”
points out Nicole Notat. I
1. A subsidiary of the Caisse des Dépôts, Novethic is a research center for corporate social and
environmental responsibility and for socially responsible investment.
2. This is an index that includes small and medium-sized European companies (in terms of stock
market capitalization), with 50% of it made up by DJ STOXX EURO Mid 200 and 50% by DJ STOXX
EURO Small 200.
Nicole Notat : We have created
benchmarks in six particular areas: human
resources, market performance,
environment, human rights, governance
and community involvement. Our evaluation
criteria are based on international
standards coming out of recommendations
from the most legitimate international
institutions, such as the United Nations,
the International Labor Organization (ILO)
and the Organization for Economic
Co-Operation and Development (OECD).
These are evolving in line with new
challenges, such as that of obesity, for
example, which was unknown about five
or six years ago.
How is SRI evolving?
N. N. : Practices and criteria are still to be
standardized. However, a new balance
is progressively being established between
a rightful interest in capital remuneration
and responsibility for the cost
of controlling external factors. The financial
crisis could allow better integration
of non-financial factors. Moreover,
responsible investors are establishing
themselves and becoming better known.
In terms of the make-up of the funds
themselves, a high demand for greater
transparency is also becoming apparent. I
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EXPLORING A WORLD ON THE MOVE
In July 2007, Shigeru Ban
opened a “paper bridge” half
a mile from the Pont du
Gard aqueduct (France).
© S. Ban Architects Europe & J. de Gastines
A trailblazer firmly set on an inclusive approach, the Japanese
architect Shigeru Ban is now to be seen everywhere.
With offices in Tokyo, Paris and New York, he is in demand
for projects worldwide. He is already recognized as one of
the most important architects of the 21st century.
Shigeru Ban
All the materials
in the world
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don’t set myself any rules in terms of materials or
structure. I like to develop new systems and adapt
my approach to what is available on site.” Shigeru
Ban draws his inspiration from his everyday
surroundings and it is by using materials that are
out of the ordinary, such as paper and recycled
cardboard, that he has built his reputation on. “The
idea of using paper came to me from rolls of fax
paper and stiff cardboard,” he explains. “You can
do almost anything with it and it’s very simple to
make it waterproof.” After carrying out several tests
with the help of engineers, a first version using structures made out of compressed rolls of paper (now
known as PTS – Paper Tube Structure) was built in
1989 for the World Design Expo in Nagoya. Other
“cardboard architecture” projects would follow,
becoming benchmarks of contemporary architecture, in which PTS has become both a structural
and movable component. A virtuoso, minimalist and
essential style is being established. Can one detect
an ecological bias through using a recycled
material? “When I began to use this material,
nobody was talking about the environment or
sustainable development. These are sensitive
subjects today but I hadn’t anticipated this trend.”
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SHIGERU BAN
Known for his creations
of a humanistic nature,
Shigeru Ban is one of the
great architects of our time.
Born in Tokyo in 1957,
he was educated in
the United States, at the
Southern California Institute
of Architecture in Los
Angeles, then at Cooper
Union School of Architecture
in New York.
Returning to Tokyo in
1985, he set up his own firm
of architects. Between
1995 and 1999, he taught
architecture at the University
of Yokohama, and then in
2000 he became a visiting
professor at Columbia
University in America. From
1995 to 2000, he was also
a consultant to the United
Nations High Commission for
Refugees. Since 2001,
he has been a professor at
Keio University (Japan).
He has won several awards
for his work (World
Architecture Awards in
2001). He is now working on
building the Pompidou
Center in Metz, France.
However, as founder of VAN (Voluntary Architects’
Network) and consultant to the United Nations High
Commission for Refugees from 1995 to 2000, the
architect now claims to be very concerned with the
social dimension of his work. So he has used
cardboard tubes for several emergency aid projects:
shelters for refugees from the genocide in Rwanda
in 1994; construction of a church in Kobe, Japan,
after the 1995 earthquake and, more recently, an
elementary school in China in the devastated region
of Sichuan. Light, easy-to-assemble and economical, this material is perfectly suited to these
emergency situations. In the Chinese city of
Chengdu, an amazing, 500m² school was built in
just one month. “The material here reveals an
approach that puts architecture firmly in the
present,” notes architect Arata Isozaki, for whom
Shigeru Ban once worked as an assistant.
Importance of context
However, paper is just the first word of Shigeru
Ban’s vocabulary. His architecture cannot be
restricted to the use of just one material, whatever
it is. Today, for a project in progress in Abu Dhabi,
the architect needs Ductal®, ultra-high performance, fiber reinforced concrete. In his constant
quest for harmonizing the building with its context,
he is studying the possibility of adapting the composition of this innovative concrete to the characteristics of the sand that surrounds the city. I
© AFP
“I
POMPIDOU CENTER, METZ (FRANCE)
Due to open in early 2010.
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© Marc Mimram Architecte
EXPLORING A WORLD ON THE MOVE
Civil engineer and architect Marc Mimram presents “Living Bridges”,
a study produced in partnership with Lafarge. He proposes to reinvest
urban infrastructure with meaning and to “re-lay” the city .
Marc Mimram
© DR
City between two riverbanks
ONE PROJECT,
FOUR EXAMPLES
MARC MIMRAM
A graduate of France’s
National School of Civil
Engineering, with a master’s
degree in mathematics and
a diploma of advanced
studies in philosophy, Marc
Mimram leads a twofold
career as consultant and
architect/civil engineer.
He is the man behind
several architectural works
across the globe: the
Léopold Sédar Senghor
footbridge in Paris (France),
the Beng Bu and Feng Hua
bridges in Tianjin (China)
and the Moulay Al Hassan
bridge in Rabat (Morocco).
He teaches at the University
of Marne-la-Vallée (France)
as well as at Princeton,
in the United States.
The originality and boldness
of his project, “Living
Bridges”, is generating lively
interest within the
architectural community.
Why are you now interested in inhabited
bridges?
Marc Mimram : The need for mobility has
become very evident, everywhere in the
world. We also see the difficulties of creating a densely populated city with positive
connotations, which thereby lends itself to
promoting the idea of ‘living together’.
Moreover, the infrastructure that shapes a
city prior to its development is often experienced as a necessary evil, a source of environmental pollution. However, it can also
create a link, express meaning and, from that
point, be the subject of a wealth of reinterpretation.
Has the structure of bridges been
reinterpreted here?
M. M. : In Journey to the End of the Night,
“The Accommodating
Structure” over the East River,
New York (United States).
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Lengthy research led to
the selection of four
locations, each of which
embodies a new way
of designing a bridge as
an infrastructure with
multiple functions.
In Shanghai, China,
the underside of the “Roof
Bridge” provides a public
space above the road
intersection. In New York,
(United States), the bridge
conceived as a residential
megastructure juxtaposes
several functions of public
representation and
accommodation, and acts
as a dialogue with the city.
In Moscow (Russia), the
“Inhabited Bridge” over
the river boldly draws
comparison with the
legendary image of the
Ponte Vecchio in Florence
(Italy), offering numerous
routes and walkways.
Lastly, in France,
La Courneuve’s “Landscape
Bridge” is a natural device
for broadening the
horizons of its inhabitants.
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Louis-Ferdinand Céline1 describes Manhattan
as an ‘upright, absolutely straight and scarily
stiff’ city. Our approach, our vision, has been
to look at the typical infrastructure of bridges
as we look at towers, as inhabitable structures that replace a vertical world with a horizontal one, taking advantage of its strength
as a crossing. This urban device for crossing,
which has been monofunctional for centuries,
can be used to adjust or add to the ‘crafting’
of the city, encouraging a meeting of the riverbanks. Formerly used purely for traffic, it can
be inhabited, imbued with a healing capacity,
to seal a rift dividing the urban space.
Does such a project mean redefining
technical boundaries?
M. M. : Concrete is now a high-tech material,
which enables us to explore less restrictive
and more ambitious structural styles than
those of conventional crossings. Ductal®, the
twin aspects of which – very high strength
and elegance – we use to the full, is the
masterpiece that underpins our building strategy. For example, Ductal® will make it possible to build the vast concrete sails of La
Courneuve’s ‘Landscape Bridge’, which weaves
together two strands of landscape, one urban
and the other rural, inspired by the two areas
that it unites beneath the motorway. I
1. French writer, 1894-1961.
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© Médiathèque Lafarge - Ignus Gerber
Breakwaters installed
to protect the Hassan II Mosque,
Casablanca (Morocco).
moving forward
in our businesses
In every country where the Group is established,
Lafarge teams adapt their services to the specific
requirements of each site. It is an approach that enables
them to address the challenges presented by the
most daring construction projects, as well as to satisfy
the day-to-day needs of building professionals.
Tailor-made services
that make
the difference
t
he Queen Sofia Museum in Madrid, the Millau Viaduct, the Washington
Convention Center, the Tacoma Glass Museum and the Maritime Terminal
at Tanger Med: for each of these projects, the Group develops innovative solutions to satisfy the requirements of architects, consultancy firms
and civil engineering companies, whether by supplying products with
specific properties, to maintain the balance dictated by the pace of
construction, or by providing services enabling the various phases of
the construction process to be optimized. This approach, aimed at satisfying the most specific demands of its contractors, has become a major
factor of differentiation for the Group. “We are able to provide our
customers with tailor-made solutions,” confirms François Redron, Senior
Vice-President Marketing and Sales of the Group’s Aggregates & Concrete
Business line. With concrete in particular we can provide an infinite
variety of properties in our products to meet the technical specifications
of our customers. To do that, we rely on the exceptional R&D resources
available within the Group.”
Innovation in action
Rudy Ricciotti’s Villa Navarra is a perfect example of this ability to face
up to challenges. Its ultra-thin concrete roof – a 40-meter-long cover
with an overhang surface of 7.8 meters – would never have seen the
light of day without Lafarge’s ultra-high-performance Ductal® fiber
concrete. In another area, the Group’s Canadian subsidiary had to
adapt the composition of its UltraGreen® and Agilia® concrete in order
to comply with the very demanding LEED (Leadership in Energy •••
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Millau Viaduct,
France, designed by architect
Norman Foster.
© Médiathèque Lafarge - Claude Cieutat
MOVING FORWARD IN OUR BUSINESSES
MOVING FORWARD IN OUR BUSINESSES
Construction of an
apartment block
in Agilia®, Chronolia®
and concrete in Atlanta,
United States.
product with thermal insulation features and exceptional acoustics. Finally,
PLAtec® provides tailor-made prefabricated solutions for nonstandard
interior design fittings.
© DR
© Médiathèque Lafarge - Ignus Gerber
Tailor-made solutions
and Environmental Design) standard for building Millennium Water
for the 2010 Winter Olympics in Vancouver. For the Conference and
Exhibition center in Oviedo (Spain), designed by architect Santiago
Calatrava, Lafarge also had to demonstrate a great capacity for flexibility.
This enormous building, opened at the end of 2008, comprises a
moving roof 120 meters in length, for which ten high-density concrete
formulae were prepared.
“These major projects are opportunities for the Group to demonstrate its
inspiration and know-how,” continues François Redron. “Our aim is also
to bring an added value to all our clients, whether it concerns major
companies building a work of art or private individuals who want concrete
paving slabs for their home. Between these two extremes, our product
range can be used for hundreds of different applications.” Innovation is
driven by prestigious projects and carried by more modest sites. For
15 years, Lafarge has transformed its haute-couture solutions into a
“ready-to-wear” range that is constantly expanding. Extensia®, a concrete
with limited shrinkage for large industrial surfaces, and Chronolia®, an
ultra-quick-setting concrete, are products designed for the volume
construction market. They are currently used for “conventional” projects
in North America and Europe. Similarly, more and more private houses
are being built with self-leveling concrete such as Agilia®, which elimi•••
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nates the vibration stage on jobsite. There are just as many properties
that create gains in productivity for service companies. In the cement
sector, Lafarge brought out its new Sensium® generation of 100% dustfree products two years ago. The Japanese teams that developed this
technology were guided by the results of a study carried out with users to
define their expectations. The result was an improvement in working
conditions and productivity on construction sites as well as in the quality
of the constructions. Chape Liquide®, for its part, is a ready-to-use mortar,
self-smoothing and self-leveling, which enables perfectly leveled floors
to be produced. Additionally, it is an ecological product, the manufacturing processes of which consume very little energy. Generally, the
Group’s efforts in terms of R&D have been focused over recent years in
looking for solutions that are more respectful of the environment.
The Gypsum Business line is not left out. “We have just launched WAB,
the first plasterboard that is not afraid of water,” confirms Bernard Fauconnier, SVP Sales, Marketing and Innovation for the Group’s Gypsum
business. Perfectly suited for use in a damp atmosphere, it can be stored
for six months in the rain and cold weather without degrading or losing its
properties and it can be cut with a simple cutter. Staying with the Gypsum
range, Lafarge markets Synia®, the first plasterboard with four thin edges
that enables a perfect finish to be obtained more rapidly. Pregymax® is a
A PERFECT FINISH
Thirty-three storeys, 147 meters high, 1,217 supporting columns
and 65,000m3 of concrete: these few figures give an idea of the size of
the project conceived by architect Zaha Hadid for the new headquarters
of the maritime transport company CMA-CGM in Marseilles (France).
The building, in concrete, glass and steel, comprises two buildings joined
together by a double wall made out of glass. The project, which began
in 2006, was given to GTM. This company, taking into consideration
the technical constraints and deadlines imposed, decided to call on the
know-how of Lafarge Concrete France. In addition to the complex
geometry of the 1,217 supporting columns in the tower, as well as all the
angular and variable sections, it had to have a finish that was very clear
and perfectly smooth in appearance. They achieved this using a selfcompacting C60 concrete, which enabled the filling to be uniform and
provided a perfect quality finish, without vibration. To keep up the pace
dictated by the project, Lafarge installed an on-site plant to produce
100m3 every week, backed up where necessary by the nearby facility
in Le Canet. The work was completed in October 2008. Handover of the
building is scheduled to take place by the end of the year. I
Restricting Lafarge’s added value to just one of its product ranges would
be simplistic. The Group’s strength enables it to offer, for reference
projects, on-site production tools, dedicated teams and delivery systems
and even to take overall responsibility for project logistics. For example,
the Group’s Australian subsidiary has developed the SkyCrane system,
with a platform truck fitted with an articulated arm that allows largesized plasterboard to be delivered and set down in the place where it
is to be installed. One of the Group’s main strengths lies in its ability to
listen to its customers and anticipate their needs, and those of its
customers’ customers. For example, staying with Gypsum, Lafarge has
cemented its presence on the French market in the construction of
hospitals by setting up a proactive initiative with hospital engineers.
“They have particular constraints in terms of aesthetics, phonic and
thermal insulation, etc.,” explains Bernard Fauconnier. “We have studied
these in detail in order to get involved from the outset and offer them
turnkey services genuinely adapted to the requirements, including the
supply of products and approved installers.”
This approach has been replicated in other countries and in other
sectors: in France for schools, in the United Kingdom for hospitals and
in China for hotels (“Total Care” concept). The Group’s Concrete
business has adopted an identical initiative for its decorative Artevia®
range and its Agilia® self-leveling concrete. In order to do that, it has used
its networks of approved application contractors trained in the
techniques of laying these products. “This type of service, which simplifies our customers’ work, whilst guaranteeing the quality of the end
result, is enjoying growing success,” confirms François Redron. “We are
also in the process of extending it to Extensia®.” Another initiative that
has been successfully replicated in other countries is the customer
support center hotline set up in France, in Avignon, to provide technical
support and order tracking. This is a genuine advantage that complements the support and monitoring provided by the technical/commercial
teams. “All this helps us to be the number-one choice for our
customers,” concludes Bernard Fauconnier. “This strategy of differentiation, which means that we are always listening to our customers, is
the driving force behind all that we do.” I
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MOVING FORWARD IN OUR BUSINESSES
M. AZZAOUI,
Quality & environment manager,
Lafarge Morocco
> Exemplary coordination
© DR Médiathèque Lafarge
“In order to produce the seahardening cement, the Meknes
factory began by preparing
a special type of meal to create
a lower grade clinker in tricalcium
aluminate. Grinding tests were
conclusive and the cement
produced met the specifications
demanded by our customer
perfectly. The coordination
between our two sites – Meknes,
where the clinker was made, and
Tangier, which produced the
cement – was exemplary. Such
painstaking work, as well as
adherence to commitments in
terms of quality, quantity and
timescales, enabled us to land
other landmark contracts.”
Tanger Med Harbor,
Morocco.
Tanger Med,
the Moroccan challenge
Lafarge played a major role in the construction of the Tanger Med maritime terminal,
on the northern coast of Morocco. A technical, economic, logistical and human challenge.
Between 2003 and 2009, more than 600,000 tons of cement
were supplied by Lafarge for the construction of Tanger Med and its
associated infrastructure. This figure alone indicates the scale of the
challenge faced by the Group’s Moroccan teams on this monumental
project. It should also be noted that there were additional requirements
to be met in terms of quality of use, storage and logistics. For the terminal
alone, the Bouygues Group wanted to use various types of cement:
a sea-hardening version, capable of withstanding deterioration caused
by the marine environment, and a version based on fly ash, with greater
flexibility and durability than traditional products.
“It was a real challenge,” recalls Abdeslam Bikdir, Vice-President Sales
of Lafarge Morocco. “We had never previously produced sea-hardening
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cement in Morocco. Our factory in Tangier was unable to supply clinker
of this type, the Tetouan factory was not finished and we had to turn to our
other facility in Meknes, 320 kilometers to the south. As well as the transportation constraints this caused, we had to modify the meal in order to
produce this clinker for sea-hardening cement, before transporting it to
Tangier to make the cement.” The specifications also dictated that there
should be a storage system close to the site, together with strict control
procedures on the quality and temperature of the cement supplied. Just
as strict quality control was applied to the fly ash cement, produced in
Tangier from raw materials transported from Casablanca.
“The Besix-Somagec Group, our customer, imposed many conditions,
particularly in terms of the temperature of the cement used and the
concrete delivered,” recalls Othman Ouçama, who was General Manager
of Lafarge Concrete Morocco at the time. “We asked our colleagues in the
Cement division to supply us with metallic silos for storage (2 x 800 tons);
we invested in a specific type of water cooler and we covered the areas
where the aggregates were stored, including the quarry. Despite that, we
had to double up on the teams to work at night during the hottest periods
of the year. It was the only way to comply with the specifications: drums
to be delivered at 25°C, with a tolerance of just 1°C!”
Although the technical properties of the concrete required were not out
of the ordinary, Lafarge still had to use new admixtures and previously
unreleased materials in order to obtain the desired quality. This was an
additional difficulty that increased considerably between the beginning and
the end of the contract. “It was all the more complex because we had to
work at such a furious pace,” continues Othman Ouçama. “At the height
of the project, production was up to 1,200m3 per day and we delivered
in total more than 320,000m3.” This made it the biggest contract ever
signed in Morocco. The quality of the services provided by Lafarge, and an
exemplary coordination in the Group’s Cement and Concrete businesses,
reinforced its image and paved the way for other landmark contracts. I
M. LAMTOUEQ,
Regional sales director,
Lafarge Cement
> Meticulous work
“Twelve months of trials, tests
and quality controls were needed
before the contract with the
Société de Réalisation du Port
de Tanger Méditerranée (SRPTM)
was signed. During the pilot
phase, 25 samples were sent to
the Bouygues laboratory, in Paris.
Special logistics were required to
ensure the transportation of the
clinker from Meknes to Tangier
within the given time. The tanks
M. GHORFI,
were prepared and emptied;
Somagec representative
tests were then conducted at each
> Genuine added value
phase of production. The Western
“Our experience of the coEuropean Technical Center was
operation with Lafarge has been
also involved in the cement
very positive. The investment they quality controls. This meticulous
committed in terms of materials,
work enabled us to meet all the
the quality of their support
client’s technical specifications
through to project completion and and to win this contract.”
also their adherence to the
demands of the prime contractor
M. ARNOUA,
should be particularly emphasized. Director of SRPTM (Bouygues Group)
at the time of the building site
The close co-operation that was
established between our technical > Effective customer service
department and Rachid Chadly,
“Lafarge Morocco made a huge
profit head at Lafarge’s mobile
contribution to the success of this
concrete center, enabled them to
project. This was due to the special
meet our expectations perfectly.
quality control of contractual
We were able to offload any
parameters that they carried out in
problems related to the production the factory, their compliance with
of concrete 24 hours a day, as well the delivery schedule and their
as issues related to logistics,
adherence to the temperature of
safety, personnel management,
the cement that they delivered to
equipment maintenance, etc.
us. Besides the technical aspects,
To be able to depend on
one of their main strengths during
a subcontractor such as Lafarge is this project was undoubtedly their
a genuine added value.”
customer service performance.”
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© Jean-Baptiste Vetter
MOVING FORWARD IN OUR BUSINESSES
Manufacture, construction, demolition... the life cycle
of materials is variable. Mindful of conserving natural resources
and to develop economically viable business streams, Lafarge
is endeavoring to make concrete and gypsum recycling
a more common process. It is a way of giving these materials
a second life and also of increasing profitability.
The second life
of materials
r
ecycling waste materials represents one of the most effective ways of
reducing the use of natural resources. Moreover, increasing energy
costs and industrial waste landfill make recycling an economic necessity. By reducing production costs, recycling also enables a company’s
profitability to grow.
Committed to limiting its ecological footprint and secure its long-term
performance, Lafarge, a pioneer in industrial ecology since the 1970s,
is endeavoring to make the best possible use of gypsum and concrete
waste. “Plasterboard is recyclable, almost infinitely. Indeed, gypsum
crystal can be hydrated and dehydrated in several successive cycles,
which makes it an outstanding material for recycling,” explains Pierre
Bourgoin, project leader for building waste recycling and demolition in
the research and development department of the Group’s Gypsum
Business. “As far as concrete is concerned, it is an inert and nonpolluting material,” confirms Pierre de Prémare, Vice-President Environment and Public Affairs in the Group’s Aggregates & Concrete Business.
By reusing it, we’re reducing the extraction of aggregates in natural sites.”
Optimizing the manufacturing chain
On deconstruction sites,
materials are sorted and
separated with
a view to recycling.
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Recycling starts at the manufacturing stage. Starting and stopping the
production line for plasterboard already generates 4% to 5% of the
scrap. For a long time, Lafarge has been reusing this waste material
by equipping most of its plants with recycling points where the components are dehydrated and ground down in order to be used for •••
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MOVING FORWARD IN OUR BUSINESSES
MULTIPLE WAYS TO RECYCLE
In the United States, nearly 700,000 tons of concrete aggregates
have been reused in the construction of the Anaheim freeways
in California. A mobile crusher installed on site to reprocess bitumen
and concrete has enabled $5 million to be saved on the purchase
and transportation of aggregates. In Chesapeake Bay, on the east coast
of the country, the crushed concrete coming from road construction
has been converted into artificial basins for oyster farming.
The pores and irregularities of the material in fact create a suitable
habitat for mollusks to develop, the cavities enabling them
to escape from their predators.
••• making new plasterboard. So, thanks to the storage and reprocessing
area installed in the plant, 5% of the gypsum used by the Delfzijl factory
in the Netherlands comes from its own recycled offcuts. The recycling
site in Bristol, in the United Kingdom, thus handles 300,000 tons of
production waste each year, which represents the amount of natural
resources preserved. With regard to ready-mix concrete, on the other
hand, production losses are minimal. “Less than 1%,” estimates Pierre
de Prémare, “is the proportion of concrete remaining at the bottom of
the drum after delivery or unused on the construction site.” The concrete
is then emptied into a separator, which breaks up the aggregates of
the slurry, a sand and cement mixture. These reusable components
are used for making new concrete. “The particular nature of this material
is that its composition is sometimes very specific. There are more than
hundred types of concrete, each with its own composition. It is not
always possible to recover the components,” notes Pierre de Prémare.
On the other hand, waste extracted from drums on trucks can easily be
emptied into molds, in order to make useful items for construction sites,
such as blocks for signposts. Waste water, extracted in 75% of production sites, is re-utilized for making concrete or for washing drums,
depending on their fine material content.
In France, the Carpentras plasterboard plant, in the Vaucluse,
was fitted out with a recycling plant at the end of 2001. Gypsum waste
A dual recycling opportunity
goes through several successive grinding processes in order to reduce
Made up of gypsum and paper, plasterboard is easy to recycle. On
construction sites, it must be cut to size and the unused pieces represent
on average 5% to 10% of the total. To recover the components requires
fixed or mobile facilities fitted with grinders and sieves to be available,
in order to separate the paper from the gypsum. “Unlike demolition,
deconstruction consists in dismantling the building selectively, by
separating materials from each other,” points out Pierre de Prémare.
“This system is starting to be put into practice, notably in Great Britain
where Lafarge handles recycling chain logistics.” The gypsum recovered
is used as a raw material for the production of plasterboard or cement,
notably in northern Europe, Brazil and South Korea. It can also be used
for fertilizing agricultural soil or for stabilizing the waters of a lake, in view
of its high calcium content. For its part, paper is converted into mulch for
animals, then into fertilizer after being used for livestock. Mixed with
the size of particles to less than five millimeters. The components
extracted go into the composition of the gypsum produced. The production
site therefore manages to recycle all of its waste. The Guerville site,
near Paris, is a former chalk quarry that has been used since
2002 for recycling road-leveling materials, notably coming from
the A86 highway. In 2008, this activity enabled thousands of tons
of crushed concrete to be resold.
In Great Britain, the average cost of landfill waste is now up to
€72 per ton, compared with €46 in 2003. Lafarge has set up a recovery
facility for plasterboard on construction sites: bags or skips are provided
by the customer, who undertakes to separate the gypsum from other
types of waste. Lafarge then recovers the material and processes it. I
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Recycled concrete blocks are
crushed to obtain a gravel-cement mix,
used as hardcore for roads.
other waste material such as recycled oil, it also represents an excellent
combustion material for ovens in cement works. “It is an up-and-coming
solution for creating synergy within the Group,” underlines Pierre
Bourgoin. At the end of its life, concrete is a precious resource. The
blocks recovered from deconstruction sites, separated from doorframes
and other types of framework, are broken up with a pneumatic drill.
Stripped of the metal (which is resold to scrap metal merchants) and
then crushed, the recycled concrete is used particularly as hardcore for
roads. “It is a much sought-after product that compacts well and is less
expensive than natural aggregates,” remarks Pierre de Prémare. In Japan,
almost all waste material is recycled, compared to about a third in Europe.
Recycling is beneficial in more than one way, since by encouraging the
use of recycled materials or substitute combustible materials, the Group
can also optimize its profitability.
Different situations according to country
The worldwide map for recycling is currently still highly contrasted.
Depending on the region, waste material recycling practices have devel-
oped to a greater or lesser degree. “To install a profitable recycling facility,
notably for end-of-life products, it is necessary, on the one hand, to have
significant volumes of material available and, on the other, outlets for
disposing of the recycled products. Higher volumes create the need for
outlets – and vice versa – but the circumstances for the development of
these facilities are not favorable everywhere. In Romania and India, for
example, very little is demolished. They get rid of very little waste. In
Europe, on the other hand, deconstruction is widespread and highway
construction and renovation creates a high demand for recycled materials.
Facilities can therefore be developed easily,” explains Pierre de Prémare.
In order to encourage the development of recycling practices, Lafarge
endeavors to take advantage of local situations and studies best practices
implemented on each site in order to deploy them in other regions where
conditions are similar. Experience is now being shared widely across the
whole sector, since the Group has been tasked with piloting the cement
initiative being conducted under the auspices of the World Business
Council for Sustainable Development (WBCSD), an umbrella group for
more than 190 international companies. I
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© Jacques Grison/Rapho/Médiathèque Lafarge
MOVING FORWARD IN OUR BUSINESSES
Loyal to its values and its desire to make the most of its employees’ skills,
the Group is working on a strategy to track the development of its employees
throughout their careers. This includes occasions when it has to cut back
or cease activities at one of its industrial sites. Extensive personal support plans
have therefore been implemented to secure its employees’ future.
A responsible
employment policy
i
Consultation and dialogue
are at the heart of the Group's
employment policy.
n the past decade, Lafarge has more than doubled the number of its
staff, going up from 40,000 employees in 1997 to nearly 85,000
people in 2009. “However, we have retained strong company values,
together with a great sense of belonging to the Group,” explains JeanPaul Berquand, general manager at Lafarge SA headquarters in Paris,
France. “In times of economic difficulty, the company has a social
responsibility. If we forget that, we’re scoring an own goal. A company
is not there just to remunerate its shareholders. It also has a duty to
inspire its employees, to support them if there is a problem.”
Since the 1980s, although French industry has been going through
a period of major restructuring, which has not spared the cement
sector, Lafarge has implemented an employment policy that puts
the individual at the forefront of its concerns. The Group has always
anticipated developments: it has been the central thread of its
strategy since it was established. Although the crisis that we are
currently experiencing is significant, it must be remembered that
between 1974 and 1984 demand for cement fell by 30%.
•••
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MOVING FORWARD IN OUR BUSINESSES
“ In times of economic crisis,
we owe it to ourselves to remain
steadfast in our values.”
© Nicolas Tavernier / RÉA
PHILIPPE JACQUESSON
Instructor training
a young female
apprentice bricklayer.
Restructuring in the cement industry has also resulted in significant staff reductions. “The fact that this socially responsible policy was
implemented during a period of crisis is not insignificant,” adds
Philippe Jacquesson, Vice-President, Social Policies for the Group.
“In times of economic crisis, we owe it to ourselves to remain steadfast in our values.” An architect of many innovative initiatives in terms
of restructuring and vocational retraining, Jean-Paul Berquand sums
up Lafarge’s beliefs in this simple formula: “Let nobody face his or
her employment problems alone.”
Lafarge today is very much an international company. Nevertheless,
from Europe to North Africa, from the United States to Africa or the
Middle East, the same philosophy applies to all restructuring plans,
with methods of application varying according to the local situation and
the legislation in force.
•••
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WORKPLACE INTEGRATION IN BRITTANY
Apart from internal retraining plans, Lafarge has also given priority
to integrating the long-term unemployed into local companies. In the
Morbihan region of Brittany, 750 jobless people were trained in building
trades, thanks to a scheme called PRIÉ (Rural Plan for Integration through
the Economy), which was conducted between 1995 and 2002. Supervised
by professionals, in consultation with local craftsmen and the Chamber of
Trade, unqualified people had the chance to be trained in building trades,
obtain qualifications and find work. This innovative initiative also enabled
architectural heritage in the city center to be restored and unoccupied
houses to be renovated and converted into social accommodation.
This was a fine example of integration, with benefits on both sides. I
A relationship based on trust
Many factors can lead to staff reductions: modernization of a production site, exhaustion of natural resources in a quarry or even the
vagaries of supply and demand. However, familiarity with the local
economic situation and the study of redeployment possibilities within
the Group, as well as various support and training initiatives for redundant employees, enable the impact of a reorganization on individuals
and their communities to be reduced. An activity of such magnitude
is clearly not done on the spur of the moment: it requires significant
resources and, above all, wide-ranging consultation in advance.
“The key factor is consultation with the social partners on the causes
of the restructuring and on measures to take to limit its social impact,”
explains Anne Larrat, manager of international social relations for the
Group. “The social partners understand better than we might think the
reasons behind a restructuring, since we are working with trust and
transparency. We are also in a long-term industry where we can anticipate economic changes; this enables better organization and therefore greater clarity in decision-making.”
In-depth preparation together with local players, management involvement and dialogue with social partners is all vital for building a
coherent vocational retraining program. “Lafarge favors a consultation
phase between management and staff representatives,” explains
Philippe Jacquesson. “Committed dialog enables measures to be
defined that will be integrated into the social plan: identification of
positions to be filled and redeployment possibilities, advertised notably
by our in-house employment agency, assistance with training and
mobility. All these measures can soften the impact of reorganization
considerably. Lastly, the third phase consists in implementing the
social plan with general ongoing support for each of the employees.”
Personalized monitoring and support
In many of the emerging countries, Lafarge’s production sites are often
located in rural areas. The biggest retraining opportunities are therefore provided by the agricultural and craft industries. In this particular context, support consists mainly in help with setting up small
companies, which revitalize the local economic fabric.
Drawing on experiences from France and Morocco, Lafarge’s subsidiary
in Jordan, Jordan Cement, following the reorganization of its business
in 2007, has implemented a plan of voluntary redundancies accompanied by support with the setting up of small and medium-sized
companies. Since its launch in July 2007, this initiative has enabled
194 projects to see the light of day, in sectors as diverse as agriculture,
trade, services and transport. The initiative, which ended up with 584
jobs being created, contributed to the economic development of a
region badly affected by unemployment.
•••
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MOVING FORWARD IN OUR BUSINESSES
MOHAMED OULAD AISSA
AND SAÏD BEN AMEUR,
former employees at the Tetouan
plant, set up a transport company
that now employs five people.
In 2003 and 2004, a huge retraining plan
in Morocco, which was put in place following the
closure of the Tetouan factory and the clinker
plant in Tangier, helped to secure the future of
those people laid off. In 2003, Lafarge closed
the old Tetouan cement works, which was
obsolete and had insufficient production capacity,
“ One of the key reasons for its
success is that our employees
saw the opportunity to create
jobs for those close to them.”
JEAN-MARIE SCHMITZ
to build a new factory that required half the
number of people. “In order to provide vocational
retraining for employees, we went beyond our
legal obligations, because we were determined to
ensure the long-term future of each one of our
employees,” points out Jean-Marie Schmitz, CEO
of Lafarge Morocco. This same desire to support
our employees prevailed the following year, when
the exhaustion of limestone reserves in the
Tangier quarry forced Lafarge Morocco to convert
the city’s cement works into a crushing plant.
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Some 235 people in Tetouan and Tangier, two
cities on the northern tip of the country separated
by 60 km, lost their jobs. To help them find a
stable position, a support and retraining plan was
implemented at each of the two sites. A team of
three people in Lafarge Morocco was therefore
given responsibility for ensuring personal support
for the employees laid off and for helping them
to identify the market sector in which they could
find employment. Two training agreements,
made with the OFPPT (Office for Vocational
Training and Promotion of Labor) and the Ministry
of Agriculture, enabled them to acquire the
necessary additional skills to succeed with their
project. Lafarge Morocco also provides them with
financial assistance, increasing in line with the
number of jobs created, with a ceiling of 150,000
Moroccan dirhams and support for a period of
two years.
Mr Ja’afar Aranki
and his son Haytham
Aranki in their
building materials store
in Al Fuhais, Jordan.
A virtuous circle
for local employment
“One of the key reasons for its success is that
our employees saw the opportunity to create
employment for those close to them,” notes
Jean-Marie Schmitz. Encouraged by this
dynamism, the operation, conducted in close
consultation with the UMT (Moroccan Labor
Union), a union with factory representation, far
exceeded expectations. Out of the 235 people
laid off, 9 found a new job and 226 started their
own business. These small businesses created
544 jobs in the region, which is an average of
more than two jobs for every person laid off;
more than four years later, only 14 of these small
businesses have failed. I
In Europe and North America, legislation, social welfare and the
employment market are often more favorable. For all that, retraining
plans are put together in those countries with the same concern for
dialog and effectiveness. In France, where the Employment Code is
particularly demanding in terms of social welfare, Lafarge goes beyond
its legal obligations. “Our credibility depends on it,” acknowledges
Philippe Jacquesson. “We can’t talk about our socially responsible
corporate values and just do the bare minimum in practice.” In Europe
as well, projects to set up companies are encouraged within the scope
of vocational retraining plans. “The classic example is the local provincial cafe,” notes Jean-Paul Berquand. “However, consultancy or
small/medium-sized companies/industries are also very common.
Furthermore, when they appear to be solidly based, they are strongly
encouraged and supported.” When reorganization is conducted
through consultation and with sufficient resources, it can represent
an opportunity for former employees to be retrained, to find a new
career direction, to take on new challenges or to consolidate and apply
their experience. I
•••
© DR Lafarge Jordan Cement
© DR
Tetouan and Tangier:
notching up successes
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The country is modernizing and the market for
accommodation and infrastructure is exploding.
Lafarge intends to play a front-line role in this process
and is getting itself ready.
© Pascal Parrot / AFP
MOVING FORWARD IN OUR BUSINESSES
Algeria:
a huge leap forward
l
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afarge and Algeria share a common history that goes all the way back
to 1864 with the major Suez Canal project, when the Group decided
to set up in Algeria to produce the 110,000 tons of lime required for
this ambitious project. This history of cooperation was interrupted in
1962, at the time of the country’s independence. For some years the
two partners had wanted to renew their links. A first step was taken
in 2002 with the setting up of a joint venture for the Gypsum business.
The purchase of Orascom Cement in 2008 confirmed the Group’s
return to the country.
“Algeria is a very attractive country economically,” notes Didier Riou,
manager of Southern Europe, the Mediterranean and Africa for the Aggregates & Concrete business. In the construction sector, needs are increasing
at a very fast pace. The Algerian government thus intends to build more
than a million homes as part of the 2005-2009 Growth Support Plan. In
2008, given that the Algerian government is committed to a policy of
privatization, Lafarge acquired 35% of the cement works at Meftah, 20
kilometers from Algiers, and a ten-year management contract. As Laurent
Bourgoing, its CEO, explains, “our investment programme will enable us
to modernize this factory, which dates from 1975, to achieve a production capacity of 1.1 million tons by 2010, and to improve its environmental performance.” By implementing its standards with regard to
safety, processes, training and the environment, Lafarge commits to •••
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Entrance to a subway
station under construction
in the city of Algiers.
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MOVING FORWARD IN OUR BUSINESSES
Construction of the new town
of Ali Mendjeli, near
Constantine (Algeria), by a
Chinese consortium.
implementing its policy of excellence on this site, as it does on all the
sites that it operates. The Algerian cement market now represents over
17 million tons per year (by way of comparison, France uses 20 million
tons) with an annual growth of 6% to 10%. “In Algeria,” explains
Guillaume Roux, Executive Vice-President and Co-President of the Group’s
Cement Business, “we are the leading cement manufacturer and the
only non-Algerian company, even though all the public sector companies carry more weight than we do. It is our desire to take part in the
modernization and development of the cement industry.”
A long-term commitment
SOLUTIONS TAILORED TO REQUIREMENTS
Cherif Dinari, general manager for Lafarge Concrete in Algeria, joined
the Group quite recently from the public building and civil
engineering works sector. He acknowledged that the French Group’s
arrival had “multiple benefits for the country’s development owing to
its mastery of the trade, its cutting-edge innovations and the quality
of its services”. Lafarge will thus make a decisive contribution to
far-reaching, lasting changes to the country’s culture. Building and
civil engineering works professionals and private-sector builders
will realize the advantages of using readymix concrete.
Lastly, there will be major opportunities in the aggregates sector,
There is also a proliferation of projects in the highways sector.
A quarter of the present network is in a poor condition and half of the
infrastructure is in need of repair. Work is in progress on the east-west
freeway, which will link the main cities in the north of the country. Work
on the second ring road for Algiers – a 65-kilometer freeway – is also
underway. More than 600 kilometers of expressways are planned, as is
the construction of 3,700 kilometers of new highways and the repair of
14,000 kilometers of existing highways. A subway and a new tramway
are now being built in Algiers, the contract for building Line 1 having
been given in 2006 to a consortium led by the French company Alstom,
one of the global leaders in energy infrastructures and rail transport.
To finance these projects, the Algerian government has significant financial resources as a result of oil and gas production. It has established a
revenue regulation fund, drawn from budget surpluses, calculated since
the financial law of 2008 on a base price of $37.50 per barrel. The
country is therefore totally debt free. It is not a speculative approach: it
has the needs and now the means to satisfy them. Here as elsewhere,
Lafarge is committed for the long term.
“notably in the area of crushed sand, which is used for making
concretes, given that the government plans to stop the use
Exceptional growth
of alluvial sand, and dune sand on occasion, in its concern for
Lafarge thus operates a gypsum plant with a capacity of 150,000 tons
at Bouira in Kabylie, as a joint venture with the Algerian group Cosider.
Furthermore, in the concrete sector, the rising demand for readymix
preserving the environment.” I
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© Édouard Caupeil / MYOP
•••
is opening up promising new perspectives. “Demand basically comes
from construction site plants for major infrastructure projects,” explains
Emmanuel Beeker, director for the North Africa and West Africa region.
“We have also developed our activities in a fixed-plant network.”
By June 2009, the Group will have a total of twelve plants across nine
sites. “Our growth is exceptional. In 2007, we only had four,” clarifies
Emmanuel Beeker. Lafarge also operates one aggregates quarry – with
an objective of 1 million tons per year from 2009 – and is gearing up
to put two others into operation. In fact, the Algerian cement and
concrete market is consolidating. For Ayman Anis, general manager
Lafarge Algeria, “the Group’s dynamic contributes and will continue to
contribute substantially to bringing about this development, notably
by passing on their know-how and creating activity wherever they set
up their plants.” Other overseas companies will certainly appear in
the future. However, Lafarge will have already gained a solid foothold
in the country. I
CUSTOMIZED SERVICES
Lafarge now offers Algeria quality products and services, which
complement the products that until now were only sold by public
sector companies. With its wealth of experience and expertise
in the cement sector, the Group has gained a firm foothold
on this buoyant market and enhanced the complementary nature of its
product offering. Ahmed Abdelaziz, Lafarge Cement sales director,
is quick to underline that Lafarge is currently the only company in the
Algerian cement industry to supply white cement of such
an exceptional quality, in addition to a full range of services.
This notably enables them to offer personalized services to each
of its customers: delivery to site, after-sales service, technical back-up
to deal with quality issues… as many services as it takes to ensure that
Lafarge can strengthen its market competitiveness in the future. I
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contri buting
Training truckers and haulage
contractors to drive more
responsibly improves road safety.
© Kenneth Gerhardt - Getty Images
to a sustainable world
© Médiathèque Lafarge - Réa - Hamilton De Oliveira
CONTRIBUTING TO A SUSTAINABLE WORLD
EAST AFRICA
With training programs and higher standards, Lafarge strives to
establish safer driving practices, in partnership with East African haulage contractors.
An initiative that is inspiring government policy and other companies in the area.
Road safety makes headway
with transporters
trainers pair in random “road patrols” to
witness and reward good practices, but also
to observe and stigmatize violations.
A truck driving
through Haller Park,
Kenya, a rehabilitated
quarry, now
a nature reserve.
After a disappointing first campaign in 2005,
Lafarge East Africa named Magdalene
Mwende Group Safety Coordinator, in 2006.
“One in every seven trucks carries a Lafarge
product! We were determined to use our influence to work with suppliers to save lives and
improve road safety,” she explains.
In August 2006, Magdalene and her team
launched their award-winning Driving for
Excellence program across Kenya, Tanzania
and Uganda, with the active support of every
transport company, supplier and customer
driver who works with Lafarge.
Now a basic requirement for any driver
carrying a Lafarge product, the Defensive
Driving Training & Certification and the Drivers’
Safety Promise combat the prevailing Ajali
haina kinga mind-set (a Swahili expression
meaning “Accidents just happen”), and some
very risky habits. Drivers must score above
70% to earn the Road Safety Pass required
for entry to all four plants.
Once a month, transport managers and
Training and spot checks
FIRST RESULTS
But prudence behind the wheel is not enough.
Reducing the risk of accidents also means good
vehicle maintenance. A mandatory checklist
excludes unsafe, ill-equipped trucks from entry
to plant sites. Spot checks carried out at loading
and unloading yards further ensure safety
compliance.
The two-year campaign has been a great
success. In the words of George Alusa, Safety
Manager with transporter Paddy Distributors,
“We have had no fatal incidents involving our
trucks since 2006.”
“Other firms come to study our methods or ask
for advice,” says Magdalene, “and Lafargetrained drivers are being snapped up by other
companies! That’s good news. Even the Kenyan
government has shown an interest in the
program, for training drivers has clearly improved
road safety in the region.”
The first campaign may have reached its term,
but Lafarge and partners will maintain standards, while initiating new safety measures such
as on-board GPS, to help transporters to keep
even closer tabs on their drivers. I
November 26, 2008,
celebrated the end
of Lafarge’s two-year
Driving for Excellence
campaign, commenced
in 2006. Positive
results were reviewed
in the presence of
Lafarge’s 50 transport
suppliers. Kenya’s
Minister of Transport
and Traffic
Commandant were
also on hand to
commend this initiative
that has significantly
improved road safety.
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© Getty Images - Walter Bibikow
BRAZIL
CONTRIBUTING TO A SUSTAINABLE WORLD
To reduce the carbon footprint of its plasterboard production processes,
Lafarge is exploring alternative fuel solutions. In Brazil, using cottonseed
oil improves plant performance while reducing CO2 emissions.
Cottonseed oil,
the flower of biofuels
If the Araripina plant (Brazil) is powered exclusively by biofuels today, it is thanks to the combined determination of Lafarge and a local
entrepreneur. “With heavy oil our biggest cost
and a primary CO2 culprit, we began exploring
alternative fuel options in 2004, explains plant
manager, Luciana Campos. “We tried five different solutions in all, from glycerine to rapeseed
oil.” A cost-efficient, low impact by-product of
the cotton flower, cottonseed oil won the trials
in 2005. Extracting oil from the cottonseed has
no ill effects on water resources, and cotton
does not compete with other vital crops, as it is
already grown in the region.
The initial supplier made a satisfactory first
delivery, but then encountered a number of
manufacturing hiccups. The quality of the
next batch did not meet plant standards.
What’s more, the 3,000 km distance proved
impractical, and far from ecological. A better
solution therefore had to be found… “A man
from the company came to follow up and
noted the plentiful cotton fields in our area. He
saw the potential for a local factory and asked
if we could help him set up, in exchange for
oil at first,” recalls Luciana Campos. Fourteen
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AN ADVANCED
BIOFUEL
CULTURE
months later, after a series of careful trials to
get oil, pressure and temperature ratios just
right, production was launched. The plant
was exclusively powered by cottonseed oil by
September 2007, and has been ever since.
The advantages of green energy
As a result of using green fuel, the factory’s
CO2 emissions have decreased considerably,
without counting the carbon benefits of local
delivery. Up until the end of 2008, when petrol
prices were still soaring, the new cotton-derived
biodiesel shaved 30% from the plant’s energy
bill. “And now that gas has dropped, we are
still saving a significant 10-15%. Best of all,
the switch has improved plant performance
and competitiveness, our enterprising supplier
has created ten local jobs, and residual materials from the process are sold to Siemens!”
shares Luciana Campos. Recycling is another
golden key to sustainable development. I
Brazil began
experimenting with
bioethanol even before
the 1970s oil crisis.
Such a strong
alternative fuel culture
is helping Lafarge to
meet its sustainability
ambitions. In 2007,
our Brazilian kilns
achieved 26%
replacement of fossil
origin energy by the
use of vegetable
biomass, thus reducing
CO2 emissions
by 156,000 tons.
Plentiful cotton crops in
the area around
Araripina guarantee the
factory’s fuel supply.
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© Jesper Mattias
CONTRIBUTING TO A SUSTAINABLE WORLD
WO R L D
With a long-standing commitment to a policy of sustainable development, Lafarge is intent on supporting the
development of the construction sector towards more sustainable practices, by creating new, more
environment-friendly materials and taking part in the debate on the construction systems of tomorrow’s world.
A global commitment
to sustainable construction
INTERNATIONAL
IMPACT
Arousing strong interest,
the WBCSD EEB project
has attended more than
75 international
conferences since its
launch and is generating
growing enthusiasm among
construction industry
players worldwide.
1. The World Business Council
for Sustainable Development
(WBCSD) unites some
200 international companies
in a common commitment
to sustainable development.
Its members come from
more than 30 countries and
20 major industrial sectors.
2. Lafarge, United Technologies,
Actelios, ArcelorMittal, Bosch,
Cemex, DuPont, EDF, GDF Suez,
Kansai, Philips, Skanska, Sonae
Sierra, TEPCO.
WAB plasterboard,
100% sustainable house,
designed by architect
Richard Hawkes,
Staplehurst, Kent (UK).
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Contributing to sustainable construction
In the field of sustainable construction, the verdict
is unanimous: we must move quickly... and there
is still a long way to go! For global economies, particularly in emerging countries, will have increasing
needs for buildings and infrastructure to support
their economic and social development.
Fully aware of the importance of this universal challenge, Lafarge attaches great importance to reducing
the environmental footprint of both its activities and
its materials, which play a vital role in supporting
worldwide development. Improving its industrial
installations, protecting natural resources and biodiversity, and reducing waste and greenhouse gas
emissions in its processes... these are just some
of the goals which Lafarge has set out to achieve.
In 2009, for example, the Group reduced its
absolute CO₂ emissions per ton of cement produced
in industrialized countries by 10%, compared with
1990, and is approaching a 20% reduction in terms
of its net worldwide emissions.
“In 2008, Lafarge enhanced its understanding
of sustainable construction after adopting a scientific method known as Life Cycle Analysis (LCA),
which we applied to buildings. This methodology
is now used by our research center,” explains
Constant Van Aerschot, director construction
trends – Group. “We are working on reducing
the environmental footprint left by our material,
while developing new construction solutions made
possible by the materials we produce. This
approach is a central part of our innovation
process,” as evidenced by our research and
development budget, more than half of which is
devoted to the manifold challenges arising from
sustainable construction.
Towards self-sufficient energy buildings
Although Lafarge is master of its own products, a
building’s energy performance is the result of an
architectural design and the selection and intelligent integration of a great many materials and
equipment. To make its voice heard in the building
energy efficiency debate, in 2008 Lafarge took on
the joint chair of the Energy Efficiency in Buildings
(EEB) project, under the aegis of the WBCSD.1 This
project sets out to develop a vision of a world in
which buildings consume zero net energy. “The
LCA of a building over 50 years demonstrates that
80% of overall energy is consumed during its period
of usage,” explains Constant Van Aerschot. Each
of the 14 project members2 contributes with its
products and services to achieving the project’s
vision. In 2009, EEB published a report that is a
genuine call to action for all construction industry
players to change the way buildings are designed,
built and used. “Action is vital,” stresses Christian
Kornevall, head of the EEB project, “because buildings represent more than one-third of global energy
demand and 60% of today’s buildings will still be
around in 2050.”
The road to more sustainable construction methods
is clear. Lafarge is on the move. I
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© Fiaga S.A. / Architecte Santiago Calatrava
CONTRIBUTING TO A SUSTAINABLE WORLD
S PA I N
A wander round Oviedo’s conference and exhibition center is like a journey. It gives the
impression of embarking on a ship of the
future, feeling the sea breeze at the heart of
Asturias, being at the center of a monument
that unites all the elements with power and
elegance. Scheduled to open in 2009, the
building designed by Santiago Calatrava,
sculptor/architect made famous by the curved
and original structures of his creations,
harnesses the individuality and boldness of
Spanish architecture.
An oval playing tricks with the light
Oviedo’s conference and exhibition center in Spain is an exceptional
work, as much for its architectural form as for the technology required
to build it. Guided tour of a 21st-century work of art, designed
by architect Santiago Calatrava.
On the threshold of
the congress hall…
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The main, egg-shaped building has two floors.
Arranged under structures of white steel, it
houses a huge concourse, an exhibition center
and a main hall with over 2,500 seats: a national
record. Other halls more modest in size are set
aside for staging conferences. Along its façade
there is an array of moving panels that open
and close according to the time of day and the
season. This vast tilting sun blind is a clever
way of providing natural light, while changing
the external appearance of the building. Quite
apart from its architectural elegance, it is a feat
of technical achievement: the 31 moving panels
measuring 45m x 120m, perched at a height
of 70 meters, required more than 800m3 of ultra
high performance concrete.
NEW MATERIALS
LEAD THE WAY
Mix of styles
Framing the conference center, a U-shaped
structure stands 30 meters above the ground.
These additional buildings will be adjacent to
the Asturias regional administrative facilities, a
5-star hotel and an 80,000m² shopping mall.
A large public square gives locals the opportunity to enjoy the surroundings of the conference
center. Tranquility, modernism and power are
the three faces of this modern center. The structure’s spirit and design are reflected on the inside
in the finest details of the fittings – in the elevator
buttons and the marble staircases, etc. The
visitor is scarcely over the threshold of the conference center before entering a world given over
to the imagination. Engraved in the floor, the
verse of Octavio Paz guides the visitor through
this stationary vessel, moored between spirit
and substance: “The wind dies down, hear the
cry of the elements, water and sand talking in
hushed voices, the moaning of the jetty assaulted
by the salt, the daring secrets of fire, the soliloquy of the ashes, the endless conversation of
the universe.” I
To extract Oviedo’s conference
center from the visionary
imagination of Santiago Calatrava
and position it squarely in the
reality of people's lives required
all Lafarge’s innovation and knowhow. The construction of the
building demonstrated the Group’s
ability to mobilize its teams
and technologies: products of high
added value (high strength, selfleveling concrete, etc.) are
an integral part of this remarkable
work of art.
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striving
to attain our full
potential
© Médiathèque Lafarge - Ignus Gerber
View of the Beskoura
cement plant, Morocco.
STRIVING TO ATTAIN OUR FULL POTENTIAL
Aix-en-Provence (France),
were laid on 18 January.
The aim of this
€13.8 million project
is not only to make these
buildings a place
of remembrance but also
to educate people about
internment and deportation
during the World War II.
Lafarge, which owns
the site, is a founder
member of the
Remembrance and
Education “Camp des
Milles” Foundation. I
At all levels of the company, personal safety is a cornerstone of Lafarge’s
management approach. It is its main priority. The Group, which is using all the resources
at its disposal to be the safest company in its sector, has since 2002 recorded
a significant decrease in the number of workplace accidents and a lessening in their
severity, thanks in the main to the Health and Safety management system implemented
on all its sites. Having reduced the lost time incident frequency rate from
1.66 to 1.57 between 2007 and 2008, Lafarge is trying to drop under the 1.35 level
this year. To achieve this, Lafarge has implemented a series of measures since
2006 and a new Energy Insulation Standard (EIS) will be deployed in June.
Using strict and defined procedures, its aim is to neutralize the threats associated
with hazardous energy sources. I
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PATRONAGE
A memorial for the
“Camp des Milles”
The first stones of the
memorial for the “Camp
des Milles”, near
Creation of the
Shareholders’ Club
ENVIRONMENT
CO2 : Lafarge stays
on course
Because its shareholders
are at the heart of its
strategy and their
satisfaction is a priority,
Lafarge set up a Club
especially for them at the
end of 2008. Notably
by means of information
bulletins, site visits
and cultural events,
the Group also intends
to help shareholders find
out about its business,
values and commitments,
as well as building closer
links with them. I
In the context of its
partnership with WWF,
Lafarge had set itself
the objective in 2001 to
reduce by 10% its absolute
gross* emissions
of C02 in industrialized
countries, and its net*
emissions by 10% per ton
of cement produced in
the world, for the
period 1990-2010. This
is far above the
recommendations of the
Kyoto Protocol. The world
leader in construction
materials seems to be well
on course to achieve its
commitment ahead of time,
since net C02 emissions
per ton of cement dropped
by 16% between 1990 and
the end of 2007. The
10% objective was reached
at the end of the year. I
A new factory
in Zambia
Last December, Lafarge
opened a new cement works
at Chilanga in Zambia.
With a production capacity
of 830,000 tons,
this plant will enable
the Group to double
its production in a market
which is experiencing
double-digit growth.
In Zambia, production will
be set at 1.3 million tons
from 2009. The cement
works, fitted with
ultramodern equipment,
meets the highest standards
in terms of environment
and quality. Its installation
represents a total investment
of €90 million. I
COMMITMENT
Renewal of the
partnership with
WWF
Working alongside
environmental protection
organizations, Lafarge
is firmly committed to
sustainable development.
In 2000, Lafarge was
thus one of the WWF
International’s first
Conservation Partners.
Renewed in 2005, this
partnership has led the
Group to become involved
in ambitious ecological
projects, which aim
to reduce its carbon
footprint and greenhouse
gas emissions. In 2009,
© DR Médiathèque Lafarge
Going the extra mile
in safety
© DR Médiathèque Lafarge
The Palatka plasterboard factory in Florida, in the United
States, uses the LOTOTO safety procedure.
INSTALLATION
© DR Médiathèque Lafarge
© DR Médiathèque Lafarge
On 12 May 2008, a violent
earthquake struck
the Chinese province
of Sichuan. Lafarge, which
lost two of its team
members and whose
cement works at Dujiangyan
and Jiangyou were severely
affected, reacted
immediately. Nearly
4,000 people were taken
under its wing and housed
in its factory at Jiangyou,
with more than 300 people
in Dujiangyan.
The Group also made
a donation of €1.5 million
to the two cities and a major
collection amongst
its 16,000 employees
in China helped to raise
1.1 million yuans.
The Lafarge Shui On
Cement teams
quickly mobilized for action,
thus enabling production
to be relaunched
a few months later. I
the partnership between
the two protagonists
will again be renewed
for four years. I
On top in digital
accessibility
Lafarge’s Internet site was
designed with the
intention of being
accessible to all.
Team efforts have paid off
since the portal has
received “Silver Level”
certification from
Accessiweb in France and
European Eurocert
“Level A”. This is a first for
a CAC 40 company.
In order to facilitate access
for the partially sighted,
the hard of hearing and
senior citizens, the Lafarge
site offers, for example,
the opportunity to listen
to its contents, through
voice synthesis, and even
browse without using
a screen or mouse. I
CRESCENDO
* Net emissions are equivalent to gross
emissions reduced by emissions linked to
the combustion of waste materials.
© DR Médiathèque Lafarge
Solidarity
in action
© DR Médiathèque Lafarge
MOBILIZATION
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STRIVING TO ATTAIN OUR FULL POTENTIAL
Presentation of the Executive Committee
Lafarge recorded a strong operational performance
in 2008, despite the strong market pressures at the end
of the year. Moreover, it was the best in its sector.
CONTACTS
BRUNO LAFONT
JEAN-CARLOS ANGULO
Chairman and Chief
Executive Officer.
Executive Vice-President,
Co-President of the
Cement Business.
Senior Vice-President,
Group Communications
Sara Ravella
[email protected]
Phone: + 33 1 44 34 58 36
Editorial director
Yolaine Galhié
Editor-in-chief
Valérie Gautier
Assistant editor
Anne Larroquette
© DR Médiathèque Lafarge
Concept-Production
Lafarge, Textuel
ISIDORO MIRANDA
GUILLAUME ROUX
THOMAS FARRELL
Executive Vice-President,
Co-President of the
Cement Business.
Executive Vice-President,
Co-President of the
Cement Business.
Executive Vice-President,
Co-President of
Aggregates & Concrete.
Copy
Lafarge, Textuel
Printed by
E-Graphics
Front cover
Cement and concrete breakwaters,
harbor of Safi, Morocco.
© Médiathèque Lafarge - Ignus Gerber
Construction site of the new
Route des Tamarins,
Ile de La Réunion, France.
Page 2 :
Harbor of Tanger Med, Morocco.
© Médiathèque Lafarge - Ignus Gerber
“Despite deterioration in our markets in the
fourth quarter, we recorded a strong operational performance in 2008. Moreover, it was
the best in the sector,” Group CEO Bruno
Lafont points out. In fact, the world leader in
construction materials posted record operational results for 2008. The Group thus made
a current operating income that was up by
9% to €3.5 billion (+ 14% at constant
exchange rate). Sales for the period increased
by 8% to €19 billion and operating margin
increased by 20 base points to 18.6%. Despite
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a fourth quarter affected by the economic
slowdown, the Group managed to exceed the
objectives of the “Excellence 2008” plan.
Against a difficult economic and financial
background, Lafarge announced a €4.5 billion
stock plan that “is aimed at strengthening its
financial structure and market leadership in
2009, as well as putting the Group in an ideal
position in anticipation of the recovery.” This
notably includes new operational actions and
the raising of €1.5 billion in capital with preferential rights issue. I
© DR Médiathèque Lafarge
GÉRARD KUPERFARB
CHRISTIAN HERRAULT
Executive Vice-President,
Co-President of
Aggregates & Concrete.
Executive Vice-President,
President of the Gypsum
Business.
ERIC OLSEN
Executive Vice-President,
Organization and Human
Resources.
JEAN DESAZARS DE
MONTGAILHARD
Executive Vice-President,
Strategy, Business
Development and Public
Affairs.
JEAN-JACQUES
GAUTHIER
Executive Vice-President,
Finance.
SARA RAVELLA
Senior Vice-President,
Group Communications.
© Médiathèque Lafarge – Gérard Uféras, Jacques Grison / Rapho
Very strong operational
results in 2008
Back cover:
Puerto Montt project, construction of
a grinding station, Puerto Montt, Chile.
EFC 10 1 10 7
PROMOUVO R
LA GEST ON DURABLE
DE LA FORÊT
Printed on paper made
from wood from sustainably
grown trees.
7
| C R E S C E N D O | L A FA R G E B I A N N U A L M A G A Z I N E | M AY 2 0 0 9 |
Number 7
“Providing
made-to-measure
solutions to meet
the technical
specifications
of each customer”
Lafarge
61, rue des Belles-Feuilles, BP 40,
75782 Paris Cedex 16, France
Phone : + 33 1 44 34 11 11
Fax : + 33 1 44 34 12 00
www.lafarge.com
May 2009
Ethics:
a rising stock
Cottonseed oil,
the flower
of biofuels
Construction
sites: tailor-made
services