France’s Lafarge goes on trial over alleged financing of terrorism in Syria

Cement maker Holcim’s subsidiary Lafarge goes on trial in France on November 4, facing charges that its Syrian unit financed terrorism and violated European Union sanctions to keep a cement plant running in northern Syria during the country’s civil war.

Investigative judges allege that Lafarge paid jihadist groups, including Islamic State (IS) and the al Qaeda-affiliated Nusra Front — both designated as terrorist organisations by the EU — a total of 5 million euros between 2013 and September 2014, Caliber.Az reports per Reuters. 

The case marks the first time a company has faced trial in France on charges of financing terrorism.

Lafarge, which became part of Switzerland-listed Holcim in 2015, and eight individuals — including former Lafarge executives — have been under investigation by France’s anti-terrorism prosecutor’s office since 2017.

In a statement on November 4, Lafarge said the case revolved around “actions that occurred more than a decade ago and were in flagrant violation of Lafarge SA's Code of Conduct. None of the former executives who are standing trial as individuals are with Lafarge SA or any affiliated entities today.”

Lafarge added that it was “dealing the issue responsibly through the legal process.”

US case already heard

The French proceedings come two years after a separate case in the United States, where Lafarge admitted in 2022 that its Syrian subsidiary paid $6 million to IS and the Nusra Front to allow employees, customers and suppliers to pass through checkpoints after the outbreak of Syria’s civil conflict.

The company paid $778 million in forfeiture and fines as part of its plea agreement in the U.S. case.

If found guilty in France, Lafarge faces far lower financial penalties. The eight individuals on trial face up to 10 years in prison. Prosecutors accuse them and the company of arranging payments to various armed militant groups to maintain operations.

Lafarge’s Jalabiya cement plant, located in northern Syria, was purchased in 2008 for $680 million and began operations in 2010 — just months before Syria’s uprising erupted in early 2011.

Employees were housed in the nearby town of Manbij, on the western bank of the Euphrates River, and had to cross to reach the factory. Investigators say among the payments were 3 million euros allegedly made to secure safe passage through checkpoints, while another 1.9 million euros were allegedly spent on purchasing raw materials from quarries under IS control.

The trial, which began on November 4, is scheduled to run until December 16.

In addition to the terrorism financing charges, Lafarge is also under investigation for complicity in crimes against humanity over the company’s efforts to keep its Syrian plant running amid the civil war.

By Sabina Mammadli