The Lafarge Group announced last year its decision to build a new cement plant in Mexico close to its existing site in Hidalgo State, near Mexico City. The new plant will have an annual production capacity of 600,000 metric tons and will replace the existing 350,000-mtpy operation.

By the time production commences in 2006, the total investment cost including additional reserves will be about US$120 million. With this plant, Lafarge will actively participate in the future growth of the Mexican market, the second largest market in Latin America consuming more than 30 million mtpy.