Lafarge’s investment to Vietnam affirms its position in Southeast Asian market

Mr. Guilaume Roux, executive vice president of Lafarge Group

Reporter: The project was started in 2004 and came into operation in July 2006. As known, Lafarge registered as a pioneer investor in Ong Keo IP where there still remains uncompleted infrastructure. What are difficulties facing your new plant?

Mr. Guilaume Roux: We forgot about the difficulties involved when we know there is Long Tau river here which is an ideal place to develop waterway transportation. Since the river is main transportation, we made it a priority to build a private port here. However, the site featured poor soil condition and a weak load-bearing foundation due to the location at the river’s edge. Therefore, the footing is supported by 3,000 reinforced concrete piles. Today, the port is capable of handling ships of 5000 tons to 30000 tons and docking two cargo freighters concurrently.

Reporter: There are many well-known brands of cement available in the southern Vietnam market including Ha Tien, Holcim … What schemes will be implemented to share the market with other manufacturers?

Mr. Guilaume Roux: We had the confidence that Lafarge had accurate information on customers tastes and attitudes and there would be a market for our products. The Vietnamese cement market posts growth averaging at 8-10 per cent per year, thus, Lavilla brand cement products made by the new facility are able to squeeze into the market. Product from the facility is manufactured to meet the highest industrial performance standards. We believe Vietnamese customers will accept our product due to its good qualities.

Reporter: What is the price for your products? Does Lafarge offer the price as high as quality of the product?

Mr. Guilaume Roux: We have invested in advanced technology and equipment in the new facility. However, the amount of investment is lower than those in other similar facilities. Accordingly, our quality products will be sold at reasonable price.

Reporter: According to the plan, the number of cement plants which have a capacity of no more than 1 million ton will be reduced until 2020 while the new facility produces only 500,000 tonnes of cement per year. How do you think about this?

Mr. Guilaume Roux: In the next time, the plant will raise its capacity from 500,000 tonnes to 1 million tonnes a year. We hope that Lafarge is going to become one of the well-known cement brands in Vietnam and affirm its position in Southeast Asia market.

Mr. Marc Jarrault, Director General of Lafarge Vietnam

Mr. Marc Jarrault: The new facility has domestic and industrial waste water treatment process and high efficiency exhaust and dust filter system. Therefore, waste water from the facility will be treated before it is discharged into the river. Lafarge’s business philosophy is safe and firm, respect the local culture, protect the environment and conserve natural resources.

Reported by Kim Loan