Photo: Adam Jarubas, Wojciech Przybylski, Xavier Guesnu, Renata Janik, Stanisław Sobczyk

LafargeHolcim will invest over EUR 100m to upgrade the Małogoszcz cement plan

LafargeHolcim, a global manufacturer of construction materials, will invest more than EUR 100 million in the upgrading and reconstruction of the Małogoszcz Cement Plant. The modernisation will increase the technical efficiency of the plant and minimise its environmental impact by reducing CO2 emissions by about 20% per year, as well as by reducing its energy consumption by a third. Part of the investment will be carried out in cooperation with the Kraków Technology Park within the Polish Investment Zone. The works will start this year, and are planned to be completed in 2023.

This investment of over EUR 100 million is one of the largest in the cement sector in Central and Eastern Europe. It combines a significant economic dimension with the achievement of environmental goals. LafargeHolcim was the first global manufacturer of building materials and the first business organisation in the cement sector to take up the ambitious challenge of reducing CO2 emissions by signing the Net-Zero Pledge declaration. By 2030 the whole group will reduce its emissions by 20% compared to 2018. In Poland, Lafarge's ambition is to achieve a 55% reduction compared to 1990. Once the works are completed, Małogoszcz will be one of the most modern cement plants in Europe.

Xavier Guesnu, CEO at Lafarge in Poland, Wojciech Przybylski, President of the Board of Kraków Technology Park

Modern technological solutions reduce environmental impact

Reducing emissions will be possible thanks to the construction of a single modern rotary kiln for firing clinker with a capacity of about 4,000 tonnes per day. There will also be a new, more efficient installation of alternative fuels – it will allow greater use of biomass, i.e. renewable energy sources from furniture or paper industries. This will minimise the share of fossil fuels in production, and also will be an important part of the closed-loop economy, solving the waste problem. The energy efficiency of the plant will be improved as well. Energy consumption will be reduced by a third due to the use of less energy-intensive equipment and own energy production. Secondary dust emissions will also be reduced by rebuilding raw material storage facilities and unloading terminals. The upgrade will not stop production at the plant, and customers will be served as usual.

This is a big step for Lafarge and the whole cement industry towards being more environmentally neutral. Our ambition is to reach 395 kg of net CO2 per tonne of cement in 2023, and 300 kg by 2030. This means Poland will produce one of the most environmentally friendly cements in the world. This investment also supports the objectives of the European Green Deal by investing in green technologies and developing a sustainable economy. Despite the economic uncertainties caused by the epidemic, we are launching this project. It will positively impact the development of the region. The investments are also an excellent way to celebrate our 25th anniversary of operating in Poland.

Xavier Guesnu, CEO at Lafarge in Poland

Cooperation with Kraków Technology Park (KPT)

The investment will be implemented within the Polish Investment Zone. The decision to support the project was made by the Kraków Technology Park that manages the zone in the region. Eligible expenditure will amount to nearly EUR 98 million. Kraków Technology Park is a professional business environment institution – it has been providing comprehensive support to entrepreneurs for 20 years. It helps develop start-ups by implementing incubation or acceleration programmes. It also inspires cooperation between fresh businesses and potential investors. Lafarge is one of the industrial partners of the ScaleUp acceleration programme. To date, cooperation between these organisations has resulted in work safety solutions (using glasses for augmented reality) and a logistics platform for Lafarge suppliers. The decision issued for Lafarge is the first one made by the Kraków Technology Park in the Świętokrzyskie Voivodeship within the Polish Investment Zone (also, Kraków Technology Park has issued three permits for the operation of the Special Economic Zone. At the same time, it is the largest investment within the Polish Investment Zone managed by KPT – hence, the contribution of Lafarge to the development of the initiative was recognised with the symbol of the Lesser Poland Tree of Investment and Innovation (Małopolskie Drzewo Inwestycji i Innowacji).

Wojciech Przybylski, President of the Board of Kraków Technology Park, Stanisław Sobczyk, Vice-President of the board of Lafarge

Lafarge’s project is a welcome investment for many reasons. First of all, it is the biggest support decision made in the history of Kraków Technology Park. It is also one of the largest projects in the country supported within the Polish Investment Zone. The green and pro-environmental nature of this investment, mainly in the area of energy efficiency, shows the positive transformation taking place in Polish industry. Most importantly, such a huge investment in production goods shows a belief in the rapid investment dynamics in the whole Polish economy. It will have a direct impact on other sectors of industry in the region as well.

Wojciech Przybylski, President of the Board of Kraków Technology Park.

The cement industry in Poland creates almost 4,000 jobs directly, and almost 30,000 indirectly. One euro invested in the cement sector generates 2.8 euros in added value for the EU economy, including transport, telecommunications, trade, recycling, electricity, and gas. The activities of Lafarge constitute a significant part of local government revenues, reaching about PLN 10 million per year from taxes and fees.

Barbara Wityńska-Słącz

Media Relations at Krakow Technology Park

+48 728478518

Krystyna Sadowska

Dyrektor działu obsługi inwestora at Krakowski Park Technologiczny