Lafarge mulls plans to re-operate in Sabah and Sarawak

Lafarge mulls plans to re-operate in Sabah and Sarawak

KUALA LUMPUR, Oct 26 — Lafarge Malaysia Bhd is considering to re-operate in Sabah and Sarawak amid the huge potential there with mega projects such as the RM16.1 billion Pan Borneo Sarawak Highway.

Its newly-appointed president and chief executive officer Thierry Legrand said the company would consider proposing the usage of cement and concrete-based material in the construction of the highway.

However, Lafarge Malaysia is not working with any of the contractors currently bidding for the toll-free highway project spanning 1,090 kilometres, which is set to be completed in 2021.

“But (we are) hopefully there is room for cement and concrete solutions to be used in some parts of the sections of the highway,” he told reporters after receiving the ISO 14001:2004 SIRIM certificate for Lafarge Chan Sow Lin ready-mixed batching plant Monday.

Presently, the percentage of cement and concrete-based solutions used in the country’s road infrastructure stands at between two and three per cent.

Asked on its investment in Sabah and Sarawak, concrete division vice president Rick Pucci said the company planned to set up a concrete plant in Sabah/Sarawak if necessary.

“The lifespan of concrete is two hours and normally we will set up a plant next to the project area and the decision to build a plant is based on project basis,” he added.

Previously, Lafarge Malaysia owned three concrete plants in those states, however, they had divested three years ago.

On the proposed acquisition of Holcim Malaysia Sdn Bhd (HMSB) from PT Holcim Indonesia for RM330 million, Legrand said Lafarge would hold an extraordinary general meeting on Nov 6, 2015 to get shareholders’ approval on the matter.

Johor-based Holcim Malaysia have one grinding station, a quarry and six ready-mixed concrete plants.

“At the moment, we are still competitors but following the merger of these two companies, we expect to optimise the logistics synergies and expansion of production capacity,” Legrand added.