Lafarge halts EUR20m investment in Sagunto plant, Spain

The management of Lafarge yesterday made public its decision to halt the expansion of its quarry and its plant at Sagunto, Spain, due to “the uncertainty created by the new local government and the lack of viable alternatives,” according to El Mercantil Valenciano. The cement producer had intended to spend around EUR20m in upgrading its plant.

In 2013 Lafarge and the town council of Sagunto agreed for the company to accept the limits to the use of its quarrying concession and move to the only available alternative in terms of the required quality of limestone, located in El Piñal. While this is possible, the council is expected to support in the renewal of the licence that allows the company to occupy the public forest in the area of current activity, which expires in 2017, and the extension of the 14ha Margas contiguous zone. However, the local government team has objected to Lafarge’s administrative procedures in terms of the environment.

The decision leaves plans to use the plant as a key export facility up in the air. Sagunto currently operates at around 73 per cent of capacity on the back of exports to Algeria and Greece, which account for 80 per cent of its output. The company owns a further five plants in Spain.