Lafarge Publication

| Number 4 November 2007 NOVEMBER 2007

La mer, l’avenir de l’homme ?

Managing Urban Growth “Being involved TheFrank Rawang River O.Gehry and innovating | LAFARGE BIANNUAL MAGAZINE | won’t burst for a more itsSymply banks anymore creative sustainable world ” CRESCENDO When | waste becomes a resource Head Office 61, rue des Belles-Feuilles – BP 40 75782 Paris Cedex 16 – France Phone: + 33 1 44341111 Fax: + 33 1 44341200

www.lafarge.com BRUNO LAFONT EXPLORING Chairman and

A WORLD ON THE MOVE CEO of Lafarge. © Gérard Uferas /Rapho

06 Future challenges of marine construction 10 Managing urban growth 14 Frank Gehry: creation is pleasure in motion 16 Frédéric Borel: architecture, a multi-sensory journey

MOVING FORWARD wice a year, Crescendo opens its pages to listening and thought, thanks to the contributions of researchers, economists and architects who help to renew our IN OUR BUSINESSES vision of this ever-changing world. This edition focuses on the challenges of 20 When waste becomes a resource t increased urbanisation around the world and construction in marine contexts, taking us into the creative world of talented architects, as responsible and 26 Quality of service: an impressive competitive advantage stimulating contributors to society and our Group. 30 India on the road to growth Crescendo is also a forum for expressing the challenges involved in the transformation currently taking place in our Group to achieve our ambition of being the best in our sector over time. This not only entails achieving the best performance in CONTRIBUTING In an ever-changing world, terms of employee TO A SUSTAINABLE WORLD safety, but also Lafarge steps up its transformation being the most 36 Memory will not weaken at the Camp des Milles innovative in our 38 The Rawang River won’t burst its banks anymore response to the issues of sustainable construction, the most profitable for shareholders, and the most socially and environmentally responsible. In this 40 Concrete on top form! edition, we have decided to present you our approach and results in industrial 42 Saving time with Chronolia™ ecology – an expertise developed over time by Lafarge to respond to the 44 A road paved with challenges question of saving natural resources, global warming and recycling of waste, as well as the economic issues specific to our activity. We are also presenting some examples of how we contribute to sustainable economic development of those around us. STRIVING The stories of our progress and future challenges included in this edition of TO ATTAIN OUR FULL POTENTIAL Crescendo serve to remind each of us that Lafarge is a Group for which 48 Lafarge news anticipation and our demand for high standards are the driving forces of progress to achieve excellence. 50 Insight and perspectives

BRUNO LAFONT © Frédéric Borel

CRESCENDO | LAFARGE | NOVEMBER 2007 | P A G E 0 3 exploari world on theng move © Getty images EXPLORING A WORLD ON THE MOVE

From lake dwellings, the city of Venice and oil platforms to Dubai’s artificial islands, man has always had both the desire and need to build on water. This architectural and technical challenge has today taken on a new significance with the increasing world population and climate change. © Jacques Rougerie architecte Future Challenges of Marine Construction

iving on, or even under water is not a new concept. The dream dates back to Greek mythology with Poseidon, the god of the sea, controlling the waves and stirring up storms with his trident. Closer to home, in Jules l Verne’s famous “20,000 Leagues under the Sea”, Captain Nemo disco- vers the legendary lost continent of Atlantis. The leap between dream and reality is often a small one. Men were building villages on piles as far back as Neolithic times and there have been many examples over the centuries: the Mekong area in Asia, the “aquatic” districts of Benin in Africa, the amazing European city of Venice built on piles, and the construction of polders in the Nether- lands. Not forgetting Tokyo and Monaco's extensions into the sea, and those in the Arab peninsula off the United Arab Emirates which are under construction. Today's ever-changing world is prompting more and more marine constructions to be built. Demographic change (the question of where to house the planet’s increasing population), climate change (the expected rise in water levels means that new building standards need to be introduced), and technological developments are all influencing factors. New materials now enable us to build structures that are more resistant to "the ravages of seawater".

From myth to reality Although marine constructions seem to offer numerous opportunities at the moment, living on them raises a number of issues, not all of them The Alexandria Museum of Underwater Archeology technical. “The ocean remains synonymous with death and fear for many designed by Jacques people,” points out Jacques Rougerie, an architect specializing in the Rougerie will be built underwater in the bay. marine environment. “But it continues to fascinate and the population

JACQUES ROUGERIE Marine architect. © REA

JEAN-PHILIPPE ZOPPINI Architect and president of the Cités Marines (Ocean Cities) association.

Tokyo, Japan, is extending its river banks. Tougher and cheaper materials mean that the town can extend onto

the water. © Getty Images

is migrating to the coast en masse. Maritime infrastructures are develo- and conveyor belts to help residents to get around. Other projects involve CONCRETE IS AT THE HEART the concrete and oxidizing its metal framework, and partly due to sulphate ping, such as off-shore platforms, airports (Nice, Seoul, Kobe, etc.), water- harnessing water, wind, wave and solar power; water desalination OF TECHNICAL CHALLENGES attack. For thirty years, clear progress has been made to slow down these front holiday villages like the Port-Grimaud water sports centre in Saint systems; seafood production and satellite communication: a range of phenomena by using highly compact concrete made with less water and “Right from when it was created in the mid 19th Tropez bay, and ‘underwater’ business and residential complexes being solutions providing the necessary services to marine developments. adding admixtures to strengthen and increase the lifespan of structures. century, concrete has always served the same purpose: built in Dubai. We are expanding our living and working space into the sea However, technological progress falls short in certain areas such as waste to make solid, reliable structures with an ever-increasing Cement quality standards have also been introduced, such as the French and this is set to increase in the future." treatment, for example. According to Jacques Rougerie, “it is possible lifespan,” explains Richard Cavailles, team leader, PM (pris de mer) standard. “Concrete’s exceptional qualities provide to treat waste, but only partially. Any constructions on water must products application and development at Lafarge. it with a long lifespan and low maintenance requirements,” confirms From hydro turbines to floating islands be absolutely faultless in terms of waste as any risk of contaminating the From the ‘rocky’ concrete of the 1850’s used for artistic Jean-Philippe Zoppini. That is why marine environment projects are gaining momentum. “Finan- oceans must be avoided at all costs," he concludes. By all means take the structures, hydraulic, reinforced and pre-stressed So, what about the future? According to Jean-Philippe Zoppini “it lies cial obstacles are becoming less marked,” explains Jean-Philippe Zoppini, plunge, but be careful! concrete through to High-Performance and Very High- in floating systems that enable sites to be moved according to ocean architect and chairman of the ‘Cités marines’ (ocean cities) association. Performance concretes, the history of concrete in the conditions." One such system is the Ile d’AZ, his floating city concept “Costs are coming down all the time. They are still higher than for land Strength and durability of structures marine environment has always faced a major designed in partnership with Alstom’s innovation department at its Saint challenge: how to withstand the effects of sea water construction, but for how much longer?” Most marine construction issues are of a technical nature, particularly Nazaire shipyard in France. This urban cruise liner would be home and its environment. “We now have very high-quality Construction in the marine environment offers solutions for man to take in terms of the strength and durability of the materials (see boxed text). to nearly 10,000 people! concrete,” explains Richard Cavailles. “Our research control of his future and environment. One example is the principality of Concrete has undergone numerous changes since it was first used Whether it is fantasy or reality the ocean obviously still stimulates our and admixtures ensure that structures in or near to Monaco. Faced with a serious lack of space, it invited international archi- in the mid 19th century. Today's high-performance (HP) and very high- water have an excellent level of resistance, particularly imagination! I tects to come up with new solutions for extending into the sea to tackle performance (VHP) concretes can produce high quality structures with to chloride, and a lifespan of over a century!" I population, land use and economic growth issues. a lifespan of up to 150 years. Marine constructions have to withstand Architects are now able to design fully independent floating cities. On the two types of stress: mechanical stress (wind, waves, sea spray, tidal Ile d’AZ, Jean-Philippe Zoppini has even devised a system of mini trams pressure, etc.) and chemical stress partly due to chloride weakening

2007: the balance has tipped! For the first time in history, half of the world’s population now live in towns and cities. And the trend is increasing. We take a look at the city of the © Getty Images future with the help of geographer Cynthia Ghorra-Gobin and urban planner Djamel Klouche. Managing Urban Growth

y 2030, 70% of the population will live in cities. Global-scale urban development is an indication of the way our societies are changing. It highlights both cultural particularities and problems that are common b to all modern metropolises. According to well-known geographer and researcher Cynthia Ghorra- Gobin: “globalization has led to the emergence of a two-speed metro- polization on a global scale.” Southern countries are seeing their cities grow on a dangerous scale and their “rapid expansion does not benefit from the economic drive of globalization,” she says. According to Djamel Klouche, architect and urban planner: “one single cause – globalization – has radically different effects. Towns are still marked by their cultural heritage.” The co-founder of the architecture and urban planning agency AUC contrasts the gigantic scale of Chinese urban projects, followers of the tabula rasa, with Vietnamese urbaniza- tion, which favors the juxtaposition of small initiatives. Furthermore, compact European urbanity, which makes a basic distinction between town and non-town, is a stark contrast to the Japanese view of urbanity linked to nature, as illustrated by Tokaido, an indeterminate urban spread encompassing Tokyo, Nagoya and Osaka which includes towns and areas of countryside. Making something old into something extraordinary is what Djamel Klouche is promoting in Europe by developing the concept of urban planning with recycling. “Town expansion has Motorway interchange had its day,” he explains. “Urban changes are now taking place using in Arizona. what is already built.” His standpoint? Focus on recycling to provide Transport access points are the town's nerve a model for new uses. centre.

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Manhattan landscape. Anarchical or mapped million homes in twenty thousand 'private towns’ have opted for this out, how cities develop segregating set-up. is telling of the local culture. Towards a more moderate management of resources Furthermore, the impact of cities in terms of use of space, ecological footprint and plundering of natural resources is on the increase. Towns occupy just 2% of the earth’s surface but consume three- quarters of resources and account for 80% of greenhouse gases. “According In response to this situation, three hundred American town mayors decided to apply the Kyoto Protocol and twenty-seven European urban © ARR to numerous analysts, planning ministers signed a ‘Charter on Sustainable European Cities’ the greatest danger in May, setting out the main joint actions. Several recent projects, such as the Dongtan eco-city in China, aspire to become a yardstick for urban our towns face ecology. is not dispersal New human-scale urban planning but segregation.” Making the global city sustainable is what supporters of new American urbanism are proposing. The city will be denser, give priority to pedes- trians, favor 'neotraditional’ architecture, provide top quality public spaces, foster neighborhood relationships and decompartmentalize © ARR residential areas. ‘New urbanism’ is based mainly on the principle that DJAMEL KLOUCHE AND The extended and fragmented city space is a rare commodity that must be optimized and made denser. CYNTHIA GHORRA-GOBIN Today’s towns are growing. Individual houses have multiplied the world’s > Architect and urban planner This way of thinking is relatively new on the vast North American conti- urbanized area by four. Changes that are just starting to occur will not Djamel Klouche is studying the nent. It rethinks the configuration of housing estates and focuses reverse the trend of the phenomenal extension of towns or the waves constraints of constructing and on public spaces. “Since the middle of the 20th century, urban develop- of urban populations that are growing every day by some 180 thousand reconstructing a town using the ment has been characterized by no conceptualization of public spaces, people! existing town: urban recycling. apart from in historic quarters,” points out Djamel Klouche. The He set up the AUC agency in As Cynthia Ghorra-Gobin notes: “the 20th century underwent major Paris with Caroline Poulin and enormously increased and deregulated consumption of land is accom- urban changes: a spreading out accompanied by a loss of centrality François Decoster. panied by a move away from planning the town and its overall develop- and the emergency of ‘polynuclear’ cities, organized around access > Geographer Cynthia Ghorra- ment. For the last ten to fifteen years we have cast aside this logic. points for express transport.” Indeed, the extended city now raises the Gobin, research director at The new urban ‘utopia’ has taken shape in prototypes that have issue of mobility. Temporal proximity is now just as important as spatial CNRS and professor at the IEP received a lot of media coverage such as Playa Vista in California and proximity, meaning that urban planning is increasingly concerned with de Paris and the Sorbonne, is Seaside in Florida. analyzing the globalization of reducing isolation. The issue of accessibility is thus behind the creation the world economy and its of large urban areas made up of several towns, such as the conurba- effect upon urban spaces. The political challenges of the town of the future tions of Ruhr in Germany or Randstad Holland in the Netherlands. According to Cynthia Ghorra-Gobin, tomorrow’s challenge will involve But the inhabitants are not necessarily equal when it comes to acces- creating ‘metropolitics’: a democratic system at the level of the metro- sing this fluidity. “Certain poor urban populations are now assigned polis, its labor market area and travel network. “We have to move away to land,” points out the geographer. “A town is more than its develop- from the idea of competition between towns making up large metropo- ments and buildings, it also defines human groups. According lises,” she believes. “They behave like competing companies. We need to numerous analysts, whichever way they develop, by extension to devise a new citizenship, on the scale of the metropolis.” A multidis- or congestion, there is always a risk of representing social divisions ciplinary approach to urban phenomena is essential: “the urban planner through geographical segregation. cannot address the issues the city faces alone (sustainable develop- The social fragmentation of urban areas is expressed by the appea- ment, social segregation, etc.),” concludes Djamel Klouche. “He can rance of urban ghettos and ‘bunker’ neighborhoods, but also by only play a part in it. The urban planner’s work must take into account a segmentation of the residential market – housing for retired people, the opinions of the inhabitants and be part of a democratic process students or businesspeople in need of temporary accommodation. which will require institutional innovations.”I Pushed to the extreme, this leads to the establishment of gated communities. A product of the need for security and a sense of belonging, the

phenomenon is increasing in the United States where nearly three © Getty Images

Frank Gehry has mesmerised architects of the last 50 years with his monumentaly lyrical pieces of work. His design partner and close collaborator Edwin Chan offers a glimpse into Gehry’s creative world.

Frank Gehry

Creation is pleasure in motion © Hémisphère

GUGGENHEIM MUSEUM The Guggenheim Foundation’s museum opened in 1997 in Bilbao ehry likes to say that he grew up as a Moder- (Spain). nist and as such learned to scorn decoration. Only materials remained as a way to huma- “g nise a building”, Edwin Chan sums up. Actually Gehry certainly knows how to use industrial materials in surprisingly poetic ways. Volup- tuous forms curve, billow and dance. Metallic But once pen, ink, cardboard and tape have cladding reflects and transforms light. These yielded up his quirky vision, Gehry's team uses have become his trademark. state-of-the-art computer tools, based on Already in 1977, when Gehry worked on his aeronautics design software, to ensure that own house in Santa Monica, “all the impor- every twist and turn can be adequately tant early influences are on view, the "unfini- rendered in concrete, glass and metal – and FRANK GEHRY shed" aesthetic, the use of industrial mate- according to code. "He uses the computer to Born in Canada in 1929, The satisfaction rials”, says Edwin Chan. Gehry added an build, not to visualise," explains Edwin. Frank Gehry studied is not just the exuberant, oddly angled structure of glass, architecture at USC and chain-link and corrugated metal around a prim, These days Gehry is concentrating on his Harvard's Graduate School final product but pink Dutch colonial that peeks out from inside. design for a new sports arena, housing, and of Design. In 1989 he won the journey, the Edwin Chan insists that Gehry strives for a new mixed-use development in Brooklyn's Atlantic the Pritzker Prize for style and approach in every project. The satis- Yards. "We try to preserve a sort of ecosystem lifetime achievement, but Gehry had only just begun. creative process faction is not just the final product but the of large and small projects", says Edwin. "The The most significant journey, the creative process itself." small projects are our testing grounds for new itself. achievements in Frank materials and new ideas. We'd love to do an Gehry's prolific career Creations never without technics exterior in concrete – though that definitely include LA's Disney concert Gehry is famous for refining his creations via takes a good knowledge of the materiel and a hall and of course the a series of scale models in different sizes. certain level of budget," especially for the Guggenheim Bilbao – but These follow manic pen-and-ink scribbles, curved surfaces that Gehry is fond of. "But also Frank's own house in and crude miniatures in which Gehry's assis- we're looking out for an opportunity." I Santa Monica. tants patiently clip, fold, corrugate and tape together endless bits of cardboard under the master's feverish gaze.

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What role does the building really have in teaching students to be architects? To find out, we interviewed Frédéric Borel, the architect of the new national school of architecture in Paris-Val de Seine, France.

Frédéric Borel Architecture, a multi-sensory journey

How did you see the relationship between the architecture of the building and its educational purpose? is a platform housing the admin department Frédéric Borel : The impact of architecture and supporting the workshops, with the on learning is significant. I thus set out to amphitheatres clinging on below. But there create a welcoming, relaxing place that is are also paths which offer an infinite number conducive to using the imagination, a place of contradictory views of the surroundings where students feel comfortable and can give and of the building itself. The building lets © ARR “Architecture the best of them. The building is a flexible people experience different sensations should not and changing tool which should not be fixed. through the various ways of moving through FRÉDÉRIC BOREL convey rigid It operates differently at different times: the space, showing them contrasting effects Frédéric Borel opened up certain parts have set opening times while or new colors. Several experiments were an agency three years after values.” others are accessible day and night, particu- conducted to obtain the different textures obtaining a degree from larly the workshops. I included active and of concrete. Molded, polished or waxed the École Spéciale open spaces, a cafeteria, an auditorium and concrete was used to achieve rough and d'Architecture in 1982. exhibition rooms designed to welcome stu- smooth surfaces. There is an infinite number He built several apartment dents as well as local residents. of emotional and sensory experiences, ran- buildings in Paris then ging from contemplation to giddiness, from numerous public buildings, Can the school’s architecture be used namely the Faculty of calm to excitement. as an architecture teaching aid? Science in Agen and the law courts in Narbonne. F.B.: In my opinion, architecture should not So architecture is changing… what about He sees the role of an convey rigid values so this building should its teaching and workplaces? architect as carrying out not be used as an example in any way. It is F.B.: Teaching has changed. It is less focused work that no computer meant to be educational and can be broken on charismatic characters and professors with can do as each project is down according to teaching needs. The buil- innate knowledge, and more about groups a forward-looking personal ding draws attention to its structure, some- of teachers holding discussions with students. interpretation requiring times through the load-bearing walls and other These new teaching methods are developing a highly global approach. times through the framework. It uses a wide partly due to the increased use of IT, which range of materials and specific implementa- is a real data bank and design tool. The screen tions. has supplanted paper so the layout of the

The new École workshop has changed to accommodate these nationale supérieure How did this take concrete shape new uses and practices. The space must be d’architecture de in your project? Paris-Val de Seine comfortable, functional, well-equipped, well- (national school of F.B.: Paradoxically, a good building should lit and able to accommodate individual and architecture) is a new building in a former be able to express itself in a few words at the group work, allowing people to move around factory. same time as being indescribable. Here, there and interact with one other. I

CRESCENDO | LAFARGE | NOVEMBER 2007 | P A G E 1 7 moving forward in our businesses © Ignus Gerber MOVING FORWARD IN OUR BUSINESSES

Industrial ecology is a sustainable production philosophy. Taking nature as a model, it minimizes losses of materials in consumption and production

processes mainly thanks to waste recovery. © ARR Mediatheque Lafarge When waste becomes a resource

o push the bounds of space exploration it is necessary to create a means of independent survival in shuttles that have a limited t capacity. That is the issue the European Space Agency is addres- sing in its Aurora program. The project involves providing astronauts with oxygen, food and water by collecting and processing their waste

products (CO2, sweat, urine, etc.). Like in nature, this processing relies mainly on biosynthesis. A permanent cycle is thus created, perfectly illustrating the goal of industrial ecology. “It involves taking a leaf out of nature’s book,” explains Dominique Bernard, Senior vice-president – Industrial Ecology for Lafarge. “Natural biological systems have reached an equilibrium based on a minimum consumption of water, materials and energy and each species finds its place in a cycle. Industrial ecology seeks to create synergies between human and industrial activities where waste products from one activity are resources for another.”

An urgent issue Over the last 50 years the burning of fossil fuels has risen by 500%, water use has doubled and the number of vehicles in the world has increased tenfold. Each of the earth’s inhabitants simultaneously produces an average of 1kg of waste each day. It is easy to imagine the scale of the challenge when we think that the planet will house 3 billion more human beings by 2050. Industrial ecology attempts to tackle these issues. “Human activity,” continues Dominique Bernard, “has always favored an open system linking resources, production of Tulsa cement plant’s tire stocks goods and discharge of surplus, waste and pollution. This open used as alternative fuels system exhausts non-renewable resources and creates pollution.”••• in the kiln. Oklahoma, USA.

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The Rawang and Kathan cement plants in Malaysia use palm kernel shells as an alternative fuel. © Christophe Boulze

DOMINIQUE BERNARD Senior vice-president – Industrial Ecology, Lafarge ••• Industrial ecology, on the other hand, involves creating symbioses between human and industrial activities, particularly through re- using waste, within a loop limiting the use of rare and non-renewable resources. This system is a practical response to the requirements of sustainable development as it reduces the consumption of natural

resources, limits CO2 emissions, provides a service to the community by dealing with waste and can reduce costs.

Challenges faced by cement manufacturers The extent of the challenges faced by the cement industry in general and Lafarge in particular can be illustrated by a few figures: 2 billion tons of cement are consumed each year throughout the world.

It takes 1.6 tons of raw materials and 100kg of oil equivalent as fuel © ARR Mediatheque Lafarge to produce 1 ton of cement. “It is our responsibility to find solutions,” explains Dominique Bernard.

A GROWTH SECTOR IN BRAZIL Replacing raw materials with waste to replace natural gypsum with gypsum resulting from the desul- Fortunately there are ‘opportunities’ in cement manufacturing phurization of the gases emitted by coal power plants. A TOWN-WIDE INITIATIVE “We transform waste which would otherwise be incinerated or put methods which will help to turn things around. For example, the into the sewage system into a product that is useful for society," consumption of bauxite as a raw material can be reduced by using Growing commitment Located a hundred kilometers west of Copenhagen says Francisco Leme, director of Eco-processa, a waste waste or by-products that are rich in aluminium, or by using waste Lafarge is a pioneer in the field. Since the late 1970's, the Group has on the North Sea, Kalundborg is a town with a management company created by a joint venture between instead of iron and silica. In Japan, where there is a shortage of been replacing raw materials and fossil fuels with waste, particularly population of twenty thousand which is home to an Lafarge and Cimpor in Brazil. “In 2006, our company co- space for waste, up to 350kg of waste per ton of cement is recovered in developed countries. It went one step further in the late 90's original industrial ecology experiment. Companies, processed 115,000 tons of waste and our target for 2009 and used as a raw material. by defining a real industrial ecology strategy, and a unique expertise authorities and farmers exchange energy, waste and is 350,000 tons." Eco-processa was set up in 2004 to supply developed, allowing for complete management of industrial processes reprocessed materials in a loop. For example, the oil Lafarge and Cimpor’s factories with waste to be used Replacing fossil fuels with waste integrating waste. Placing the impact of its activities on the environment refinery provides hot water to greenhouses, and gas as alternative fuel and is one of the largest waste management Waste products can also be used instead of fossil fuels for firing, on a par with corporate responsibility and governance issues, Lafarge and cooling water to the power station, which companies in the country. Through its network of 10 factories carried out at an extremely high temperature of 2,000ºC. All the has a long-term approach to managing its business. supplies it with steam in return. The power station it covers a large geographical area and is used as a model for the organic compounds are destroyed, like those used in the composi- Industrial ecology has therefore become a real business in addition provides heat to the pharmaceutical factory, hot whole of Latin America. In its factories in Cantagalo, Matozinhos tion of tires for example, without having a negative impact on the to its core business of cement. The Group’s Cement business has water to the town and fertilizing mud to farmers who and Arcos, Lafarge has reduced fossil fuel consumption environment. The circulating raw material is converted into lime developed in terms of its professionalism and expertise and at the provide residual water to a plaster factory which by 25,000 tons and raw material consumption by 10,000 tons which is then used to clean the combustion gases. “This means,” same time a dedicated organization at Group and business unit level receives synthetic gypsum from the power station, thanks to the collection and recycling of waste. I says Dominique Bernard, “that the gas scrubber is directly integrated has been set up. “It is the role of each business unit’s Resource and so on. I into the process.” In the final grinding phase, it is also possible Recovery department to develop professionalism in this area”, •••

Suren Erkman “What could be the point of unsustainable growth?”

Scientist and teacher, Suren Erkman is the author of Towards Industrial Technology.

Why is the study of the biosphere of interest to industrial activity? Suren Erkman : First of all because it supports all activity. It is something we were not aware of when the economic system was still limited. But as it has society as a whole. It involves overhauling developed, with globalization, we can see the economic system at company and global that human activity has a significant impact level. It is not a question of decoration, on the biosphere. We now need to take into making a good impression or following © ARR account the constraints and limitations it fashion. Sustainable development must be SUREN ERKMAN imposes. at the heart of company strategy, an integral Founder and Director of the Institute for Communication Next, man must learn from the biosphere. part of the way the company is managed. and Analysis of Science It is a complex and sustainable system and Too often the approach is incomplete, and Technology (ICAST) in Geneva, Switzerland. we need to draw inspiration from it by transplanted from the outside and seen creating sustainable economic systems as conflicting with the interests of in its image. We could, for example, mention shareholders. This is a short-term view. inter-company networks drawing inspiration What is needed is a redefinition of the from food chains that are finely controlled notions of benefit and growth. Nothing is systems, particularly through the efficient possible if we keep the current analysis use of resources. framework. This does not mean that we need to copy the way the biosphere works. It is more a Northern European countries are often matter of drawing inspiration from it, which cited as an example. But what about is different. To do this, man's system must emerging countries like China and India? be based on scientific ecology. For example, S.E.: I am quite impressed by what is © ARR Mediatheque Lafarge recycling is a necessary activity, but that is happening in China. The country’s leaders The Milaki cement plant in Greece not to say we should do it without making have understood that sustainable uses industrial waste waters as an alternative to some raw materials a distinction. Certain types of recycling are development is a major strategic challenge of its cement production process. desirable while others are not. and that it is a question of survival. Of course, implementation is complex and How can we ensure that industrial ecology difficult but there is a real desire to make ••• Dominique Bernard continues. tires, waste oil, palm oil, rice, coffee and sunflower hulls, as well as develops within companies? progress at the highest level. The situation A very clear commitment has also been made: Lafarge makes every purification plant sludge, bone meal, wood, household waste, ground S.E.: The key factor lies in the fundamental in India is more worrying. The people in effort to reduce the consumption of non-renewable resources by plastic, composite packaging, solvents, paint sludge, ink, varnish realization that sustainable development is charge still see sustainable development as recovering waste whenever possible. Modernizing old, less efficient and hydrocarbon waste. In 2006, the Group recovered 6.5 million in no way a question of image or advertising. an obstacle to economic growth. However, factories by installing modern technologies has improved energy tons of waste throughout the world. Twenty-six of the forty-six On the contrary, it is a fundamental strategic the fact that there is a highly active civil

efficiency and reduced CO2 emissions. Nearly €100 million is spent countries in which Lafarge produces cement have undertaken an challenge, not only for the company but for society in India means that we can hope each year in technical centers to increase factory efficiency. industrial ecology strategy. The Group has developed its expertise that things will develop in the right relating to the use of raw materials and alternative fuels and, by direction. I Service business working alongside waste collection and treatment operators throu- Lafarge uses all the means at its disposal in the different countries ghout the world, has immersed itself in the specific industrial issues in which it operates. Fuels Lafarge now uses in its plants include of this high-stake business. I

In increasingly competitive world markets, the quality of products and materials is no longer enough to establish a competitive edge. Quality of service is key. An innovative vision of the industry where the focus is very much on the customer. © ARR Mediatheque Lafarge Quality of service: an impressive competitive advantage

n the building materials sector, customer satisfaction has become a strategic element in company performance. Resources that have previously been associated with IT, telecommunications and insurance i are being rolled out, such as call centers, tailored services, satisfaction surveys, sharing of best practices… The market is experiencing a real revolution! Lafarge also uses its culture of innovation to develop high value-added services and anticipate customer needs.

Concrete: looking ahead For many years Lafarge has adapted to its customers' needs by using dedicated technical teams at numerous plants – in targeted customer catchment areas. In the ready-mix concrete segment, quality of service is boosted by coming up with innovative logistics solutions. The strategy developed by the Group led to the creation of a network of ready-mix concrete plants close to customers’ markets. “We need to move towards a more service-focused industry. Where ready-mix concrete is concerned, this means placing logistics at the heart of our business,” explains Gaëlle Monteiller, president of Lafarge Béton Vallée de Seine in France. Indeed, the quality of deliveries is now one of the main factors for customer satisfaction in the segment. It is at the forefront of Lafarge's thinking at the moment. “Concrete is a fresh product that River transport cannot be used after two hours and some structures have to be worked is used whenever possible on continuously and at a steady pace. Our customers' main requirement to make deliveries and collect excavated material. is therefore to have good quality concrete in the right place at the right Here, along the time. It is up to us to make sure this happens.” ••• River Seine, France.

P A G E 2 6 | LAFARGE | NOVEMBER 2007 | CRESCENDO In the ready-mix concrete MOVING FORWARD sector, transport and logistics IN OUR BUSINESSES are extremely important.

AGGREGATES: GYPSUM PRESERVING RESSOURCES GIVING INSTALLERS To provide its customers with more added A LOCAL SERVICE value, Lafarge Aggregates is making Wherever it is located, Lafarge’s Gypsum improvements by focusing on river transport, business line has the same goal: to make life the complementary nature of its offering and easier for installers. Backed by specialized waste management. In several areas, skills and expertise, they are real ambassadors Lafarge Aggregates decided to use an for the brand and its products, and are alternative mode of river transportation ensured a local service all over the world. to deliver materials from the production site CEMENT In Australia, Lafarge has given all the and collect excavated material from its OPTIMIZED INVENTORY franchised stores the same visual identity customers’ premises. Customers find the MANAGEMENT (logo, signage, product presentation, etc.) excavated material collection service in order to provide installers with the same In the United Kingdom, the Cement useful and it also benefits Lafarge as it points of reference. A technical manual has business line has developed a system of recycles the material to redevelop or fill in been produced for franchisees to assist their outsourced inventory management. This quarries. Moreover, river transport is an customers. Similarly, in Thailand all the allows customers to optimize their logistics environmentally-friendly, competitive, products in the range are sold under the brand chains and provides them with improved consistent and safe mode of transport. Elephant Board® via the Gypsum Express visibility of their inventory. Tom Caldwell, Certain Lafarge Aggregates sites already network. Thai installers, who are extremely coordinator at Bredero Shaw, a customer crush the concrete from demolished mobile, can thus find the same ranges, specializing in pipe coating says: “In 2005, buildings then resell it to road builders products and services everywhere. who use this recycled material in the Lafarge set up a remote silo management In the United Kingdom and in France, the goal capping layer. system for two of our projects in Scotland. is to make life easier for installers. In the United Kingdom and France, another This outsourced management proved to be For example, Lafarge collects plasterboard service, developed at the initiative a real bonus for us. Deliveries were waste from sites and returns it to the factory. of Lafarge Aggregates, involves delivering automatically planned by Lafarge teams This initiative has been warmly received and aggregates in large heavy-duty sacks which in Dunbar, which also carried out close should soon be extended to other countries. are then used as waste sacks on site. I monitoring of the cement tankers. This prevented us having to constantly carry At the end of the chain, customers are out checks or make telephone calls for pleased with the OTIFIC program (on time, commissioning and cancellations. All the in full, invoiced correctly). The customer can time we saved allowed us to concentrate also receive a customized response by on planning the purchasing of other contacting one of the Group’s call centers: materials we needed. In the end, we a single contact person deals with the request significantly reduced the risk of stock and ensures entire statisfaction throughout its outages." I relationship with Lafarge. In the Netherlands, Ireland, Romania and Indonesia, Lafarge gypsum training centers offer our trading customers a day-long session to become ••• To optimize its logistics and management planning, Lafarge Lafarge moves forward taking its customers’ needs into account. is planning to boost its skills in the field of new information technology, It adapts to their requirements by breaking down the offer or propo- familiar with the products: after the morning’s particularly geolocation, which has already proven to optimize and sing specific support. For example, in Chile, the Valdivia site team theorical presentation, participants take part in ensure the smooth running of operations. The aim is to deliver offers customers only requiring small quantities ready-mix concrete building a wall. I on time, whatever the constraints and conditions. “Deliveries to urban packed into 0.5m3 or 1m3 plastic cases. Lafarge Concrete is also environments are the trickiest. We have to deal with numerous developing new indicators and management tools to increase customer unknown quantities such as traffic jams or the weather. We have satisfaction. “We are going to monitor customer satisfaction in a more started to equip our trucks with GPS linked to our information systems systematic fashion,” explains Gaëlle Monteiller. By implementing to optimize planning using real-time data management. Eventually, indicators, we can detect sources of dissatisfaction and take correc- our software will include the specific features of each site for a more tive actions immediately. This will enable us to boost our responsive-

customized service." ness and ensure a consistent quality of service.” I © Hamilton de Oliveira / REA

India, a multi-cultural land of traditions, is constantly reinventing and moving fast to become an economic powerhouse of the 21st century. Lafarge is stepping up its presence and reaffirming its desire to invest in India and contribute to the country's growth. © Atul Loke / Panos Pictures India on the road to growth

ith a population of over a billion people and the emerging middle class, India is experiencing an unprecedented rise in the demand for new “ housing," explains Martin Kriegner, President of Lafarge's Cement w business in Asia. At the same time, major infrastructure investments are being made (roads, ports, power plants…) and new shopping centers, hotels and cinemas are springing up at a staggering rate. India is the second largest cement market in the world, after China, however, its cement consumption per capita is less than a fifth of that in China. Furthermore, it uses plasterboard which is 20 times less than China so the growth potential is huge. Lafarge launched into the Indian cement market in 1999 and now has three plants in the country: two cement plants in the state of Chhattis- garh and a grinding station in Jharkhand. Lafarge's total cement production capacity in India is currently 5.5 million tons and there are numerous plans for growth in the pipeline.

Fast growth “We are one of the major regional players in the cement market of eastern India. Our products are distributed in the remotest regions of eastern India through our vast and dedicated network of over 3,000 authorized dealers and numerous sub-distributors. We are uniquely Lafarge’s Employability positioned to fuel the country's strong growth in the cement sector," training program, in India, has enabled many young explains Uday Khanna, CEO of Lafarge India. And this is just the people to find work as masons. beginning. •••

CRESCENDO | LAFARGE | NOVEMBER 2007 | P A G E 3 1 Groundbreaking ceremony for MOVING FORWARD the second production line with IN OUR BUSINESSES Bruno Lafont, Chairman and CEO of Lafarge, Sonadih cement plant, state of Chattigarh, India. © Sébastien Le Clézio MARTIN KRIEGNER President the Group’s Cement business in Asia

••• Lafarge has unveiled its plans to enter the markets of north and north-east India throught greenfield projects. It has rolled out plans to increase its production capacity at its existing Sonadih cement plant in the state of Chhattisgarh and the construction of a grinding station at Mejia in western Bengal as well as two cement plants; one in the state of Himachal Pradesh and the other one in the state of Megalaya. This should increase the total cement production capacity in the country to 13 million tons in the next 4 years. “The excellent reputation of Lafarge’s

cement business has paved the way for the new businesses like © Hamilton de Oliveira / REA Gypsum, Aggregates & Concrete in India to enjoy the enormous Indian market soon," believes Uday Khanna. The Lafarge Boral Gypsum India joint venture has seen its plasterboard business develop rapidly and has set up a new production site in the state of Rajasthan near New Delhi. Olivier Chaudet - Country Manager, LGBI, is delighted with the way things are progressing: “In the last three years, we have doubled our THE INNOVATIVE HOME BUILDING CENTRE To curb widespread unemployment in the youth around its plants and sales every year and we now represent around 20% of the plasterboard Investing in a sustainable future to augment their earning potential, Lafarge runs an innovative project market." As in the rest of the world, Lafarge is pursuing a sustainable develop- The recently refurbished Home Building Centre in Kolkata brings on employability i.e. training unqualified and unemployed youths ment and corporate social responsibility strategy in India. All Lafarge together everything under one roof that a homeowner dream of. It in masonry techniques. This program also intends to reduce the quali- Building the brand thanks to value-added products India manufacturing sites are thus ISO 9002, ISO 14000 and offers information, advice and services to homebuilders and organizes fied labor shortage in the construction sector. The masons are made In India, over 95% of cement is sold in 50kg bags, 60% of which is ISO 18000 compliant. An extensive quarry restoration program has meetings and sessions with architects. A professional database – from aware of safety issues and good practices at the construction site, sold to Individual Home Builders, due to a solid network of distribu- already led to the planting of over 1.5 million trees. Out of a number plumbers to engineers – is available, as well as a wide selection of are offered insured against accidents. The success of the initiative tors. “We have developed Concreto, positioned as a premium cement of local health initiatives, Lafarge has helped to create best in class eye books, magazines and audiovisual documents. Some pre-drawn up attracted numerous young people from neighboring villages and new that enables the purchasers to reealize their aspirations to own their hospital in the state of Chhattisgarh. Mobile clinics provide medical house plans are also available. Homebuilders can bring their plans and courses, particularly in plasterboard installation, will soon be organized. own home,” explains Martin Kriegner. The Concreto advertising care to around 25,000 people in 75 villages. Lafarge also works with local see a 3D view of their future house and ask for the advice and opinions campaign to brand-conscious customers includes print and television governmental organizations to support health information campaigns, of experts on architectural styles and construction materials, thus Think global, act local adverts, outdoor poster campaigns and information is available through particularly in Tuberculosis through Direct Observation of Treatment, saving a lot of time and money. In response to high demand, Lafarge Although the sharing of knowledge between Lafarge's international the Home Building Centre, a highly innovative information center HIV, AIDS, etc. has set up a specially-equipped mobile version of Home Building technical center and the Indian operations has significantly let to impro- relating to materials and construction methods to help home builders. Centre. This mobile centre travels around eastern India countryside ving operational efficiency, the real secret of Lafarge's success in India Buoyed by the success of Concreto in the local market, Lafarge Boral Employment opportunities for young people offering solutions to its customers, builders, masons, contractors and lies in its ability to adapt to local conditions. For Martin Kriegner, it is all Gypsum India (LBGI) recently launched a new plasterboard range under Lafarge facilitates computer education to 1,500 young girls in ten architects outside the large cities, where most residential constructions about finding “very Indian solutions” rather than importing foreign skills. the name of Lagyp®. “The plasterboard sector is a burgeoning market schools near to the factories. The course is conducted with specialized are built. It is an effective way of bringing the very best construction “We fully adapted to India,” he explains. “An expertise is arising that we here so we need to create a brand and raise its awareness to rival less institutions in line with Indian Government school curricula and it supple- expertise right to customers. I may export to other Lafarge subsidiaries all over the world.” I effective traditional systems," comments Olivier Chaudet. ments class-room learning.

36 Mécénat, le camp des 1000 I 38 La rénovation d’un village en roumanie I 40 La formation en Afrique du Sud I 42 Visite d’un chantier Chronolia I 44 sur les routes de la réunion I © ARR Mediatheque Lafarge

The Camp des Milles, a huge tile factory which was transformed into an internment, transit and deportation camp from 1939 to 1943, is a unique heritage site in France. With the support of the Lafarge Group, which has owned the site since 1998, it is about to be dedicated to citizen education. Memory will not weaken at the Camp des Milles

THE CAMP DES MILLES Long after production ceased in this clay tile served three functions factory, each square inch is still covered in The only memorial during World War II. a thick layer of red dust. of its kind in the world Until June 1940, ‘enemy subjects’, Political pundit and sociologist Alain Chouraqui, mainly German anti- The artists’ camp research director at CNRS, started up the Nazi refugees, were It is hard to imagine that between September “Memory of the Camp des Milles” project and held there then for the 1939 and March 1943, 10,000 people were has chaired the steering committee since its next two years it was a transit camp for crammed into these vaulted furnaces, these creation in 2002. The Camp des Milles memo- foreigners awaiting enormous halls that afforded no privacy. rial will include a tour of the main building, exile. In August 1942, Among them were many artists and intellec- which has remained 85% intact since 1943. even before the occupation tuals including painters, one of whom was Max The purpose of the restoration is to preserve of unoccupied France, Ernst, musicians, men of letters and Nobel its emotive power by creating a discrete 10,000 Jews were Prize winners, who tried to brighten up their museography. “This special place is rich in detained there. 2,500 gloomy days by creating an active cultural life. universal lessons,” explains Alain Chouraqui. of them, including a hundred children, The walls still bear the traces here and there. “It is an analysis of how everyday stereotypes were deported from The tile factory strikes an imposing figure could result in the unthinkable horrors of the Camp des Milles in this inner suburb of Aix-en-Provence and Auschwitz. It aims to raise the awareness and to Auschwitz via is the only camp out of the two hundred that level of responsibility, particularly of young peo- Drancy or Rivesaltes. existed in France to remain almost intact. ple, when confronted with the threat of racism,

As unbelievable as it may seem, the existence fanaticism and totalitarianism.” A tour of the 1 Foundation for the memory of this heritage site was kept under wraps until outside of the camp reveals the canteen and of Shoah, Representative committee of Jewish 1983 when the imminent demolition of one its frescos, the wagon memorial and Serge institutions in France, Association du wagon of the camp's buildings was announced, spur- Klarsfeld’s exhibition “The 11,000 Jewish chil- souvenir et du site mémorial des Milles (wagon and Milles ring people into action. A wagon memorial dren deported from France”. With the aid memorial association), Shoah (in 1992) and the wall paintings in the former of various educational means (films, interac- memorial. canteen (in 1997) were opened up to the tive displays, etc.) and based on historical illus- 2 Ministries of National 1 Education, Culture and public. Today, a group of associations , backed trations (Shoah, Armenian and Rwandan Defence, PACA Region, by a coalition of public and private partners2, genocides), the project invites the visitor Bouches du Rhône Council, Aix-en-Provence Council, is getting ready to set up a space dedicated to to reflect and make a critical judgment. It is Pays d’Aix urban community and several private sponsors, memories, culture and citizen education on quite different from focusing solely on the past. including the Lafarge Group and its former subsidiary the site’s 6 hectares. Part of it will be opened We are reminded of the words of the poet Paul Lafarge Couverture, joined by at the end of 2008 with the rest opening Eluard: “If the echo of their voices weakens, the Caisse d’Épargne, France Télécom and the city of

MALAYSIA

In 2001, floods engulfed the town of Rawang in Malaysia. To prevent such a disaster happening again, Lafarge carried out a large-scale project to protect the residents which involved diverting and widening the Rawang River and building a new village. © ARR Mediatheque Lafarge The Rawang River won’t burst its banks anymore

In October 2006, 124 families were given the port of the State of Selangor in 2003. As stres- keys to their newly built houses in the new vil- sed by YB Dato’s Tang See Hang, a member lage of Desa Kuala Garing: the result of a close of the executive committee of the State of collaboration between Lafarge Cement in Selangor and a congressman in Rawang: “This Malaysia and the State of Selangor, where the project will prevent the risk of flooding at the town of Rawang is situated. same time as helping to resolve the housing problem in our community." The combined Tailor-made solutions efforts of the State of Selangor and Lafarge Following the flood in March 2001, Lafarge have led to the State granting a piece of land, started to study the problem of Rawang River provided all families with access to property flooding which poses a constant threat to the and obtained subsidies for the construction population. It quickly became apparent to the of housing. Lafarge’s contribution in terms of Group’s management that the river needed to material and financial resources has exceeded be diverted and widened to protect local resi- €2.5 million. dents. A particularly exposed community In 2004, a relocation agreement was signed of homeless families had been living in a high- with the families. In addition to the construc- risk area along the banks of the river for over tion of an 80m2 house for each family, Lafarge thirty years. Part of the area belongs to Lafarge created a play area, a school, the village hall, Cement in Malaysia. “A study of flooding in a few stores and a basketball court. recent years revealed that it was completely River diversion work, which got underway unpredictable and represented a constant in early 2007, is expected to be completed threat to people working and living in the by the end of the year and should protect the area,” explains Alain Croüy, CEO of Lafarge area from the risk of flooding for many years Cement in Malaysia. to come. I The defined action plan had two parts: the construction of a residential area to rehouse homeless families living in the area, and river development work to prevent flooding.

Supporting local initiatives Lafarge’s project, which had been submitted The village of Desa Kuala Garing created to host to the local authorities, received the full sup- the homeless families.

P A G E 3 8 | LAFARGE | NOVEMBER 2007 | CRESCENDO CONTRIBUTING TO A SUSTAINABLE WORLD In addition to the concrete for the velodrome, Lafarge supplied plasterboard for the construction of Rio’s Engenhão stadium. BRAZIL

Lafarge Brazil helped to build the track at the new velodrome for the Pan American Games held in Rio de Janeiro this year. The project involved tailoring a solution to the customer’s requirements. Concrete on top form!

The velodrome is part of a new sports complex in Rio de Janeiro dedicated to speed sports and hosted the speed skating and cycling events in this summer’s Pan American Games. The construction of the velodrome involved Lafarge Brazil's technical team, made up of engineers and salespeople, analyzing both the technical challenges and the customer’s requirements. “Our approach consisted of coming up with an end-to-end proposal, particularly in terms of services and solutions, focusing on the customer’s expectations and needs rather than on the product itself, as is Gonçalves. Easier and therefore quicker often the case,” explained Leonardo Gon- to apply, the product fulfilled the construction çalves, Strategy and Marketing Manager at requirements and offered Lafarge Brazil teams Lafarge Concrete in Brazil. greater leeway, allowing more checks to be carried out. Opting for Proposing Especial II concrete, combined with a custom-made product standard concrete, which the customer was The team also had to work within a tight time- planning at the outset, was a value-added frame. “We had about two months to build the solution. “By focusing our attention on custo- tracks’ foundations, which is a relatively short mer’s needs, we are able to offer a service that time,” said the Strategy and Marketing Mana- better suits their requirements and provide ger. From a technical point of view, the surface solutions that they might not have thought of,” had to be extremely smooth and tough to said Leonardo Gonçalves. cover it with a special woodfloor imported from A total of 1,300m3 of concrete was required to Siberia. “That is why, after analyzing the objec- construct and cover the cycle tracks, which tives, we proposed Especial II concrete. It is a have been admired by the 1,500 velodrome strong, high-quality concrete which pours well, spectators during recent competitions. I making it easy to apply,” explained Leonardo © © Paulo Romeu / Myzoom

CRESCENDO | LAFARGE | NOVEMBER 2007 | P A G E 4 1 CONTRIBUTING TO A SUSTAINABLE WORLD

FRANCE

This construction site on the French Riviera looks like any other with its busy The exceptional properties workers and cranes transporting equipment and materials. It is, however, a pilot of Lafarge’s new concrete, Chronolia™, reduce time site, one of the first to use a revolutionary quick-set concrete called on site. ChronoliaTM, Lafarge’s latest concrete product.

Saving time with Chronolia™

In a few months’ time, there will be thousands CHRONOLIA™ of square meters of office space, but for the Chronolia™ came out time being this district of Nice is still a building after five years of lab site which springs into life at 8am every mor- Simplicity research aimed at meeting customer needs. ning. “We are always looking for ways to Another benefit is that with ChronoliaTM every- It involves a new reduce cycle times. We constantly need to thing is ready to use. So, how is ChronoliaTM formulation and a new save time,” explains Arnaud Comino, works different from “normal” concrete? It becomes admixture technology. foreman. So how can this race against time be perfectly resistant in record time! French This unique formula is reconciled with the time required for the Lafarge Concrete unit’s Marketing Director Lafarge’s closely guarded secret, but the key words concrete to achieve optimum performance? Guillaume Francqueville explains it in techni- remain the same: rapid The answer is ChronoliaTM. cal terms: “this new concrete is just as easy strength and ready mix to use and has the same 2-hour workability concrete. Efficiency time before pouring, but the setting time is Wide use in all areas of On your marks! Arnaud Comino gives the much shorter, meaning that the formwork can construction, for all orders on site. His men are busy with the form- be removed sooner. It rapidly develops mecha- building industries: tertiary, collective and individual. work. At 11am, the laborers are pouring the nical strength so is ready for form removal Chronolia™ cuts the cement. A few hours later, at 3pm, the within a third of the usual time. overall cost of the concrete is ready for the formwork to be remo- ChronoliaTM offers a variety of applications on construction project due to ved. It is a real revolution in the building world! all construction sites. Formwork can be reu- a shorter production cycle “With this new concrete we can pour twice in sed more quickly (thus reducing hire costs) and reduced overheads. the same day. After one stripping, we pour and the new concrete makes it easier to deal Launched in 2007 in again straight away so it is ready the following with the unexpected, particularly in terms of France, the United Kingdom and North morning,” explains Arnaud Comino. the weather, and to meet deadlines. Further- America, Chronolia™ will The project’s main feature is 30,000m2 of floor more, by reducing time on site, ChronoliaTM be rolled out in Chile, South for the offices (16,000m2) and the four base- helps to reduce nuisances. Africa and Spain in 2008. ment levels (14,000m2). As the workers reco- In a construction sector in which safety and gnize, “completing the floors more quickly time are key, ChronoliaTM is the solution to means that we can get on with work on the a productivity issue that gives new meaning to

P A G E 4 2 | LAFARGE | NOVEMBER 2007 | CRESCENDO CONTRIBUTING TO A SUSTAINABLE WORLD

REUNION

One of the largest construction projects at the moment is underway on Reunion Island against the breathtaking backdrop of the Indian Ocean. The project includes The Route des Tamarins braves the heights of the steep wild coast carved out by the construction of a 750-meter viaduct the ocean. Opening up the area will require a series of extraordinary structures. and three bridges over 200 meters long.

A road paved with challenges

Carrying out such an enormous construction RESPECTING project in very difficult geological and climatic THE ENVIRONMENT conditions is a real challenge both in terms of Another objective of the design and implementation. The highest levels Route des Tamarins project of expertise and standards are required to is to build a road that fits harmoniously into its build a 33.7km motorway when there are 120 surroundings, which is why ravines to contend with. Numerous enginee- all the structures will be IN FIGURES ring structures are needed to overcome the given landscape and obstacle of these deep openings cut into the architectural treatment. 33.7km of motorway For example, the spans between Saint-Paul and rock by the water. Four outstanding structures cement plants on the island, we also decided of the Saint-Paul viaduct l’Étang-Salé are on the agenda to tackle this huge chal- to secure a continuous supply from the Bam- increase the higher it gets, 9 interchanges (Saint- lenge: the Saint-Paul viaduct, a 750-metre buri factory in Kenya.” It took months to deve- giving it an elegant flowing Paul, Plateau Caillou, appearance. l’Éperon, l’Hermitage, le S-shaped infrastructure, and the Trois Bassins, lop the on-site manufacture of high-perfor- Barrage, les Colimaçons, Grande Ravine and Fontaine bridges which mance products which are extremely closely Care is also taken not to damage the flora and Stella, Le Portail, l’Étang- are 350m, 300m and 200m long respectively. monitored and for which a quality charter has Salé) fauna and a comprehensive The first two are the equivalent of the Eiffel been signed. Lafarge also helped to finance study was carried out on Investment of 850 the cliffs in order to million tower in one piece! a road built to access its concrete plants preserve the ecosystems. 4 outstanding in order to reduce dust emissions. engineering structures A technical challenge 3 tunnels Construction groups Vinci, Eiffage, Colas and As of 2009, the motorway between Saint-Paul 23 non-standard Razel have pooled their expertise to work on and l’Étang Salé will make it easier to drive bridges this remarkable project. Alongside them, around the western part of Reunion Island. Its Over 120 ravines Lafarge is supplying the concrete, aggregates main purpose is to provide better links bet- crossed and cement. “Lafarge is offering fully tailored ween the north and south of the island at solutions to its customers for this project,” a time of strong demographic growth. The ope- explains Noël Le Floch, manager of Lafarge ning of the new road between now and 2015 Sobex. “Two concrete plants with an annual will alleviate traffic congestion on the coastal capacity of 70,000m3 were specially set up road. This enormous €850 million construc- for them. As they cannot change cement once tion project is expected to generate 1,500 the work is in progress and as there is no direct jobs. I © Régis Bouchu / Actophoto

P A G E 4 4 | LAFARGE | NOVEMBER 2007 | CRESCENDO © Jean-Philippe Mesguen striving oati u full our attain to potential STRIVING TO ATTAIN OUR FULL POTENTIAL

Disvestment RECOGNITION joint venture) has invested applications, can cover REDUCING CO2 Environmental $28 million in of Lafarge Roofing a large surface area And that completed policy receives the construction of two without joints, steel mesh makes three! award plasterboard plants. In March, Europe’s or steel fibers, limiting After Morocco and In July, Lafarge UK The factories, which leading private equity later cracking problems. Malaysia, Lafarge has received a Business arein Chengdu (China) firm PAI Partners Two new materials that now introduced a third in the Community Award and near to New Delhi completed its acquisition are a real technological Clean Development for Excellence at the Royal in India, each have of Lafarge Roofing revolution in concrete. I Mechanism (CDM) in Albert Hall in London a production capacity of for an enterprise value India. The project, in the presence of Al Gore 10 million square meters. of €2.4 billion. set up at the Arasmeta and the Prince of Wales. They are expected to Wishing to maintain cement plant, involves This Eco-Award recognizes begin production in the a link with the business, replacing part of the the Group’s commitment first quarter of 2008. I which operates in clinker making up the to the environment and 41 countries, Lafarge has cement with fly ash, the effectiveness of its reinvested €215 million a by-product of coal-fired resource recovery policy. alongside PAI Partners power stations. Lafarge’s policy involves to take a 35% stake A highly effective way

reducing greenhouse in the new entity. I © Serge Henri of reducing greenhouse gas emissions and gas emissions conserving non renewable linked to the cement energy and material manufacturing process, resources by substituting A new production it is expected to reduce line in China them with recycled waste © Nian Zeng / Rapho CO2 emissions by in the cement production At the beginning of 2007, ACQUISITION around 70,000 tons process. I Lafarge Shui on Cement Lafarge a year. I

© Benoît Fougeirol opened a new production increases its stake Thiais RATP Bus Center, near Paris, line at its Dujiangyan in Héraclès made with Ductal®. Architects: ECDM. cement plant in China. Lafarge now holds INNOVATION This injection of a 78.70% in Héraclès’ Chronolia™ $58 million has enabled capital. In April, the Group and Extensia™, the Sichuan factory, which bought over 18 million two revolutionary was already one of the shares in Greece's leading concretes country’s most modern cement producer from the Lafarge reports The result of many years plants, to double its Greek National Bank for

© Samuel Ashfield € of research, Lafarge’s production capacity. the sum of 322 million. © ARR Mediatheque Lafarge a record 2007 first half two new concretes This is a major asset Lafarge, which already Chronolia™ and Extensia™ for Lafarge, enabling held 52.70% of the Sales up 4% to €8,385 million, current operating income up 20% to €1,360 million (up meet today’s specific it to keep up with the company’s capital, has 23% in the Cement business and 30% in the Aggregates & Concrete business) and net construction needs. exponential growth of increased its stake income of €934 million (up 70% year-on-year). By becoming resistant the world’s largest cement by 26%. I H1 2007 results, announced in August, augur well for the latter half of the year. SITE in four hours instead market and shore up This performance that we have achieved, in spite of the difficult economic climate in the Lafarge expands of between twelve its leadership position United States, “reflects the structural improvement of our operations and the cost-cutting its Gypsum and twenty hours in south-west China. I initiatives taken throughout the Group,” explains Chief Executive Officier Bruno Lafont. I business in Asia for traditional concrete, To increase its production Chronolia™ saves capacity and strengthen precious time! its position in a high- Meanwhile, Extensia™ potential Asian market, concrete, which has Lafarge Boral Gypsum been specially designed

Based on its environmental strengths, Lafarge has announced its ambitions for 2012 in the field of sustainable development. A new team The Group is committed to a set of challenges based on target figures, deadlines and measurable objectives. running the Executive Comittee

CONTACTS Senior vice-president, Group Communications Philippe Hardouin [email protected] Phone: + 33 1 44 34 11 71 Fax: + 33 1 44 34 12 08 Lafarge 2012 Ambitions: Vice-president, Group External Communications BRUNO LAFONT JEAN-CARLOS ISIDORO Stéphanie Tessier sustainable leadership commitments ANGULO MIRANDA [email protected] Chairman and CEO Phone: + 33 1 44 34 92 32 of Lafarge. Executive Executive Vice- Fax: + 33 1 44 34 12 23 Vice-President, President, Co- Registered with the AMF, the French Co-President of the President of the market authority, the French version Cement business Cement business of the Lafarge 2006 annual report and As part of our "Excellence 2008" strategic plan a real difference and lead the way to positi- 2006 reference document (document de référence), as well as the U.S. version on launched in June 2006, we renewed our vely influence our industry: form 20-F, registered with the Securities commitment to be one of the world's most - the fight against global warming and Exchange Commission (SEC) may driving and efficient industrial groups in terms - biodiversity be downloaded at www.lafarge.com. of employee health and safety, environmental - the health and safety of our employees and Editor-in-chief protection, social responsibility and corporate the local communities in which we operate. Stéphanie Tessier governance. This means running our busi- Concept ness in the future better than we do today so Real changes Lafarge, Textuel that we can satisfy our customers, employees We have set our goals in an endeavour to Copy Lafarge, Textuel, François Bernheim and shareholders, acting in a way that cares accomplish significant progress within the GUILLAUME ROUX THOMAS FARRELL GERARD KUPERFARB for the well-being of the environment and next five years. They are measurable and dated Executive Vice- Executive Vice- Executive Vice- Impression communities where we operate, as outlined and target figures have been set. They apply President, Co- President, Co-President President, Co-President E-Graphics in our Principles of Action. to our 2,000 industrial sites in over 70 coun- President of the of the Aggregates & of the Aggregates & Cover In the Philippines, Lafarge uses rice © ARR Mediatheque Lafarge It means challenging ourselves regularly in an tries: it is therefore a worldwide project. We Cement business Concrete business Concrete business husks as alternative fuel in its cement Farming use of lands around Bouskoura ever-changing world and therefore requires will report on our performance every year. We plants’ kilns up to 35% susbtitution. cement plant in Morocco. us to anticipate change and constantly adapt are committed to achieving our goals regard- © Redlink, Gamma, Eydea to make continual progress in the interests of less of how ambitious they are. We are deter- our world. mined because we believe that this progress could help change the scheme of things, to This is what our Sustainability the advantage of the environment and society. Ambitions 2012 are all about. With these new guidelines, developed with In a constantly evolving world, the building the assistance of our stakeholders and the materials sector is in the throes of change. involvement of the Group's senior manage- We are now picking up speed so that we can CHRISTIAN JEAN-JACQUES ERIC OLSEN ment team, we have chosen to focus on major take up these new challenges. I HERRAULT GAUTHIER Executive Vice- issues: the areas where we have real impact, Executive Vice- Executive Vice- President, the major environmental and social challenges For further information on our Sustainability President, President of President, Finance Organization and

that we face and areas where we can make Ambitions 2012, log on to www.lafarge.com the Gypsum business Human Resources © ARR Mediatheque Lafarge – Gérard Uféras, Jacques Grison / Rapho.

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