Increase in capital for Lafarge

The Lafarge group, the leading French producer of concrete, cement and plaster, has announced an increase in capital of 1.5 billion euro. The two largest shareholders, Groupe Bruxelles Lambert (GBL) and the Luxembourg-based company NNS Holding, have confirmed their intention to subscribe their pro rata shares.

The increase in capitalisation is part of a raft of measures amounting to 4.5 billion euro with a view to shoring up the group’s financial structure in 2009.
Lafarge’s Chief Executive Officer Bruno Lafont added that there will be staff reductions during the year, but without specifying figures or countries. “There are many ways of increasing productivity before touching employment levels. In France, for example, there is a certain degree of flexibility,” he said. At the end of 2008 Lafarge employed 84,000 people worldwide, including around 8,000 in France.