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| Lafarge and Strabag create a common company in Central Europe Lafarge, the world leader in building materials, and Strabag, Central and Eastern Europe's largest construction company, are combining their cement activities in several countries of Central Europe. The two companies signed an agreement on 25 May 2010 creating the holding company Lafarge Cement CE Holding GmbH. The new company will have its headquarters in Austria. Lafarge will bring its cement plants at Mannersdorf and Retznei in Austria, Cížkovice in Czech Republic and Trbovlje in Slovenia into the holding, while Strabag will contribute the plant it is currently building in Pécs in Hungary. Lafarge then will hold a 70 % interest in the new company, while Strabag will hold 30 %. As a result of this transaction, Lafarge debt will be reduced by € 77.5 million. Lafarge Cement CE Holding GmbH will have a total annual production capacity of 4.8 million tonnes of cement. These construction materials will be sold under the Lafarge brand name in all countries. By joining their activities on the Austrian, Czech, Slovak, Slovenian and Hungarian markets, the two companies expect significant synergies in terms of investment and cost. Pending the approval by the relevant competition authorities, the company would become operational 1 January 2011. It will be fully consolidated by Lafarge and at equity by Strabag. write your comments about the article :: © 2010 Construction News :: home page |