Lafarge Jordan Cement held its ordinary General Assembly on Wednesday 25th April, 2012, during which it endorsed the Company's 2011 budget. The Company's consolidated financial statements revealed that Lafarge Jordan Cement's net operating loss amounted to JD 4 million. They also showed that net sales dropped by 25% and cement production volume declined by 24%, compared to 2010.
The General Assembly's annual report showed that 2011 proved to be a challenging year, particularly due to the surplus of total cement production which exceeded 10 million tons, while consumption did not exceed 4 million tons. Other major challenges included the ongoing increase in gas and electricity prices, the entry of a new competitor, as well as surging fixed and manufacturing costs.
In turn, Lafarge Jordan Cement's shareholders affirmed their support of the Company during this challenging period. They also urged the government to enable Lafarge Jordan Cement to use energy sources similar to those being used by other cement producers in Jordan, which in turn will achieve fairness and will protect the rights of the Company's employees.
Furthermore, the annual report elaborated that Lafarge Jordan Cement is currently in the process of adopting the necessary actions to ensure the long-term continuation and sustainability of the Company's operations, and to guarantee the increase of its local market share by improving its competitiveness. These measures include the immediate use of less costly fuel resources such as coal, in addition to implementing the Voluntary Early Leave Program in collaboration with the General Trade Union of Workers in Construction, in light of the current decrease in utilized production capacity from 4.5 million tons to less than 1.7 million tons.
Lafarge Jordan Cement General Assembly Holds Annual Meeting