Lafarge Surma Cement Ltd. is a joint venture of LafargeHolcim, a world leader in building materials and Cementos Molins, Spanish Company with strong global presence. Lafarge Surma Cement Ltd. was incorporated on 11th November 1997 as a private limited company in Bangladesh under the Companies Act 1994. Subsequently, on 20th January 2003, Lafarge Surma Cement was made into a public limited company. The Company is listed in Dhaka and Chittagong Stock Exchanges and has 35,000 shareholders.
The plant of Lafarge Surma Cement, which is located in Chhatak Sunamganj is the only fully integrated dry process cement plant in Bangladesh where high premium quality clinker (a semi finished product needed to produce cement) and cement are produced utilizing sophisticated and state-of-the-art machineries and processes. The Company’s ability to produce its own clinker under its strict quality supervision and the presence of an international standard Quality Control and Monitoring Lab ensures the same consistent premium quality in each and every bag.
Lafarge Surma Cement sources its primary raw material limestone from its own quarry in Meghalaya, India, which has one of the best quality limestone deposits in the world. This limestone is brought to the Plant using a 17 km long conveyer belt. In November 2000, the two Governments of India and Bangladesh signed a historic agreement through exchange of letters in order to support this unique cross border commercial venture, and till date it is the only cross border industrial venture between the two countries. As Bangladesh does not have any commercial deposit of limestone (the main raw materials for producing clinker), the agreement provides for uninterrupted supply of limestone to the cement plant from the quarry. Lafarge Surma Cement Ltd. wholly owns a subsidiary company Lafarge Umiam Mining Private Ltd. (LUMPL), which is registered in India and operates the quarry in Meghalaya.
By supplying clinker to other cement producers in the market and through import substitution of clinker, Lafarge Surma Cement helps the country save USD 65-70 million worth of foreign currency per year. The Company also contributes around BDT 1 (one) billion per annum as government revenue to the national exchequer of Bangladesh. About 5,000 people depend on our business directly or indirectly for their livelihood. Apart from these, the Company also contributes to the sustainable development of the society, economy and environment though its Corporate Social Responsibility initiatives in the area of education, health, employment generation, infrastructure development and environmental management.
This commercial venture, with an investment of USD 280 million is one of the largest foreign investments in Bangladesh. It has been financed by Lafarge, S.A., Cementos Molins, S.A., a number of leading Bangladeshi business houses together with International Finance Corporation (IFC), The World Bank, the Asian Development Bank (ADB), German Development Bank (DEG), European Investment Bank (EIB) and the Netherlands Development Finance Company (FMO).
With a well-balanced presence in 90 countries and a focus on cement, aggregates and concrete, LafargeHolcim is the new world leader in the building materials industry. The Group has 100,000 employees around the world and combined net sales of CHF 29.5 billion. LafargeHolcim is the industry benchmark in R&D and serves from the individual homebuilder to the largest and most complex project with the widest range of value-adding products, innovative services and comprehensive building solutions. With a commitment to drive sustainable solutions for better building and infrastructure and to contribute to a higher quality of life, the Group is best positioned to meet the challenges of increasing urbanization.
Cementos Molins, based in Barcelona, Spain, is a renowned cement company founded in 1928. With over 88 years of experience in manufacturing cement, Cementos Molins is a company listed in the Spanish Stock Exchange. Apart from India and Bangladesh, the company has industrial operations in Spain, Mexico, Argentina, Uruguay, Bolivia, Tunisia, and has reached an agreement with a local partner to set up new plant in Colombia. The Group has 4,439 employees around the world and combined net sales of 0.75 Billion EUR in 2015 with a 22% combined EBITDA Margin (proportional method). Cementos Molins business is built, amongst others, on the basis of Technological knowledge, obsession with costs, quality of products, culture of work and effort, respect for the environment, integration of sustainability in all the processes and appropriate care for people.
Lafarge Surma Cement will continue to strive to come up with range of products and solutions that will convert architectural dreams into realities and provide the building blocks for a modern and beautiful country.