Lafarge Malaysia to step up cost and efficiency drive

Following its MYR135m net loss for 9MFY17, Lafarge Malaysia confirmed it will pursue ongoing strategic initiatives to achieve profitability in the near term, according to Focus Malaysia.

The company expects to optimise its costs as it plans to source petcoke directly from the Middle East, which is forecast to lead to savings of 5-10 per cent.

The current modernisation project at its Rawang works is also expected to contribute to the cement producer’s drive to optimise its assets as it will bring greater efficiency and reliability. Logistic costs will also be improved as the company switches from road to rail to minimise demurrage and enhance the logistical network.

In addition, Lafarge will be widening its reach to the high-margin retail segment, which includes small contractors, renovators and homeowners.

Lafarge is currently the dominant player in Peninsular Malaysia with a 40 per cent market share.