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LAFARGE CORPORATION ANNOUNCES REORGANIZATION

 RESTON, Va., Dec. 14 /PRNewswire/ -- Lafarge Corporation (NYSE: LAF; TSE, ME), one of the leading construction materials companies in the United States and Canada, is restructuring its North American business units to be more efficient and cost competitive.
 Lafarge will consolidate 11 regional operating units into six in its two main business lines, cement and construction materials. To increase organizational efficiency, the company is reducing management layers, eliminating duplicative administrative functions and standardizing procedures and information systems. Manufacturing and distribution facilities will not be materially affected by the reorganization.
 Lafarge expects to take a one-time after-tax charge of approximately $15 million (24 cents per share) in the fourth quarter of 1993 to cover the costs of the restructuring. Most of those costs will be in the form of separation allowances for about 330 salaried employees whose positions are being eliminated.
 The staff reductions represent about 11 percent of Lafarge's active salaried work force. Approximately 60 percent of the eliminated positions are in Canada.
 As of Jan. 1, 1994, Lafarge's new North American organization will include three regions for construction materials: Western, based in Calgary, Alberta; Eastern, based in Toronto, Ontario; and U.S., based in Canfield, Ohio. Similarly, the cement group will be divided into Western, Eastern and U.S. regions, with office locations in Calgary; Montreal, Quebec; and Southfield, Mich., respectively. Corporate headquarters will remain in Reston.
 Based on its current tax position, Lafarge estimates that its restructuring efforts, including changes in employees benefit programs, will reduce after-tax costs by approximately $19 million annually. For 1994, the company estimates an after-tax savings of about $8 million as the new organization is progressively phased in.
 The restructuring will give employees broader autonomy in day-to-day decisions, while the company as a whole should achieve greater economies of scale as functions are consolidated, according to Michel Rose, Lafarge's president and chief executive officer.
 "The reorganization represents a considerable milestone for Lafarge in that it will make the company even more cost competitive than it is today," Rose said. "Lafarge will be a simpler organization that is truly focused on its customers."
 Lafarge currently operates 15 full-production cement plants, a cement grinding plant and more than 90 distribution terminals throughout the United States and Canada, with an annual productive capacity of over 14 million tons of cement. The company also has approximately 450 construction materials operations and is one of the largest suppliers of ready-mixed concrete and aggregates in North America. Systech Environmental Corporation, a Lafarge subsidiary, is a leader in co-processing, or recycling industrial waste into fuel for cement kilns.
 Based in Reston, Lafarge Corporation is a Fortune 500 company with more than 7,600 employees and 1992 sales of $1.5 billion. Its majority shareholder, Lafarge Coppee of Paris, is one of the world's largest producers of building materials with operations in 35 countries and 1992 sales of $5.8 billion.
 -0- 12/14/93
 /CONTACT: Jean-Pierre Cloiseau of Lafarge Corporation, 703-264-3670/
 (LAF)


CO: Lafarge Corporation ST: Virginia IN: CST SU: RCN

MH-DS -- DC007 -- 3586 12/14/93 10:48 EST
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Publication:PR Newswire
Date:Dec 14, 1993
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