China: Top global cement producer Lafarge said on 5 June 2013 that it will continue to invest in China, despite overcapacity issues that have plagued the cement industry for years. Bruno Lafont, chairman and chief executive officer of Lafarge, said the company will invest in China using a 'value-growth' model.
Lafont said that Lafarge is likely to invest more in research, production and creating new partnerships in China. He said that the company will prioritise its existing position in Southwest China, although it may expand to other parts of the country. Lafarge expects to earn income of US$32.6m in China by 2015, according to Chen Mei, vice president of Lafarge Shui On Cement.
Lafarge has mainly operated in less developed regions in southwest China since it entered the Chinese market in 1994. Lafont said that China's overcapacity issues have appeared in other growing markets before, adding that inefficient and unsustainable players will eventually be phased out.
Just 69.4% of China's cement industry's capacity was used in 2012, according to a survey conducted by the China Enterprise Confederation.
