（2005.11.15 dcement）Lafarge Shui On Cement, the joint venture between Lafarge and SOCAM created on 11 August 2005, announces the acquisition of 100% shares of the Shuangma Investment Group in Sichuan Province for around US$38 million. Taking into account the debt of the company and investment budgeted in the short-term to improve the existing facilities, the total investment for Lafarge Shui On Cement would amount to around US$160 million.

Through this acquisition, Lafarge Shui On Cement is strengthening its positions in Chengdu, the capital of Sichuan, which is already supplied by the Dujiangyan Lafarge cement plant whose production capacity is currently being doubled to 2.8 million tonnes in 2006. Shuangma acquisition also provides two complementary positions in Sichuan: a cement plant in the north of the province near Mianyang, and two plants in the south near Yibin.

Thanks to this acquisition, the joint venture becomes the leader in Sichuan.

Lafarge Shui On Cement already had a production capacity of 2.3 million tonnes in Sichuan and will totalize a production capacity in the province of 5.6 million tonnes by the end of 2005, and 7 million tonnes after the completion of the second line in Dujiangyan.

The transaction will increase the cement production capacity of the joint venture in China to 21 million tonnes, bolstering its position as the leader in Southwest China, among one of the three largest cement producers in China.

Lafarge Shui On Cement is 55% owned by Lafarge and 45% owned by SOCAM. While SOCAM Chairman Vincent Lo chairs the joint venture’s board of directors, Lafarge leads the management of the joint venture and named Cyrille Ragoucy as Chief Executive Officer.