Lafarge announces major restructuring programme along national boundaries

France: Lafarge has announced a new organisation project, which aims to make the group more agile and responsive, focused on its markets and its clients and designed to accelerate the group's development and profitability.

The building materials giant, which has major interests in cement, concrete and aggregates, will replace its product line-based
organisational structure with a country-based organisation. This will include the removal of a layer of management and the resulting reorganisation of the Executive Committee.

The project involves three main measures: to implement a country-based organisation, with country CEOs' responsibilities extended to cover all cement, aggregates and concrete activities; removal of one hierarchical layer, with the aim of cutting out the regional level; the resulting transformation of the structure and responsibilities of the Executive Committee, including the creation of 'Performance' and 'Innovation' functions.

The project was described by Lafarge as 'the natural next step' following its geographical expansion and its recent refocusing on 
cement, aggregates and concrete. This has become more pertinent following the disposal of most of its gypsum activities. Its aim is to increase Lafarge's differentiation through the development of higher value-added products and solutions for construction.

Bruno Lafont, Chairman and Chief Executive Officer of Lafarge, said, "This new organisation project will reinforce our efficiency. It will drive us to greater focus on our markets and customers' needs and to 
accelerate the group's development through organic growth and innovation. This transformation is a milestone for the group. It should strengthen Lafarge's position as a key player in sustainable construction." The project will be implemented from January 2012 onwards.