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LaFarge Forms Great Lakes Division

Jan, 11 2001


Source: Lafarge Corp.

HERNDON, Va.--Lafarge Corporation, North America's largest diversified supplier of construction materials, has formed a Great Lakes division to manage its rapidly growing water-based supply network for aggregates (crushed stone, metallurgical stone, sand and gravel).
The announcement comes one week after Lafarge completed the CDN$425 million acquisition of Warren Paving & Materials Group Ltd., Canada's largest privately held supplier of construction aggregates and a leading supplier of asphalt and paving services. The acquisition added 1.2 billion tons of future reserves while increasing the company's annual sales volumes to over 100 million tons, making Lafarge one of the largest suppliers of aggregates in North America.
Lafarge also acquired a significant quarry at Presque Isle, Michigan, last June. This water-based operation, located directly on Lake Huron, produces more than 7 million tons of aggregate a year, and has more than 500 million tons of reserves.
The new Great Lakes division will be based in Cleveland effective Jan. 1, 2001, and will be part of Lafarge's Eastern U. S. region. The division will offer the markets around the lakes a broad portfolio of aggregate products, including construction stone, metallurgical stone, sand and gravel. It will encompass all of Lafarge's existing Great Lakes aggregates operations, including the quarries at Presque Isle, Michigan, Marblehead, Ohio, Manitoulin Island, Ontario, as well as Warren Paving & Materials' quarries in Smelter Bay and Nestorville, Ontario, and a number of receiving docks located strategically throughout the Lakes.
Also included in the new Great Lakes division will be Lafarge's non water- based aggregate operations in Shalersville and Youngstown, Ohio; Pittsburgh, Pennsylvania; and Weirton, West Virginia, as well as operations in Lockport and Niagara, New York. The new division also will handle all water-based shipping for Lafarge's slag operations.
"Lafarge's strategy to grow the aggregates business has been successful, taking us from 43 million tons of sales just four years ago to more than 100 million tons today. This new division alone will represent more than one fourth of that," said Ted Balfe, president of Lafarge Construction Materials. "Much of our growth continues to be in areas-such as the east and west coasts of North America-where we can ship economically by water, and in the Great Lakes we are now a key supplier with extensive market coverage. It's an advantage for our customers because we can provide a level of service that few others can match."
Heading the new Great Lakes division as Vice President/General Manager will be Todd Ohlheiser, currently Vice President/General Manager of the Northern division in Canfield, Ohio. Other key management positions will be announced at a later date.
Lafarge Corporation operates 15 cement plants, approximately 900 construction materials operations, four gypsum wallboard manufacturing facilities and other businesses in 44 states in the U.S. and all provinces of Canada, with net sales of more than $2.6 billion in 1999.
The company's majority shareholder is Lafarge (Paris Stock Exchange: LAFP). The Lafarge Group is the world leader in building materials with operations in 70 countries and sales in excess of $11 billion.

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