RABAT (Reuters) - The Moroccan affiliate of French building materials group Lafarge reported a 40 percent gain in 2007 net profit on Monday as it rode a wave of housing, tourism and infrastructure projects in the north African country.

Net income climbed to 1.452 billion dirhams from 1.03 billion a year earlier, Lafarge Ciments said in a statement. Operating profit grew 34 percent to 1.9 billion dirhams while sales were up 17 percent at 4.54 billion dirhams.

"The strength of direct investments, both foreign and national (and) the ramp-up in big government projects lead us to believe that the growth in demand will continue at a sustained rate," Lafarge Ciments said.

Lafarge has outperformed local rivals due to efficiency gains and a strong presence in Morocco's north, where road, port and tourism projects are under way after decades of neglect.

Big northern cities such as Casablanca, Rabat and Tangier are also the main beneficiaries of a government-backed campaign to eradicate widespread slum housing by building low-cost flats.

Expansion projects under way are due to double Lafarge's capacity in the north to 2 million tonnes by April 2009.

The company said it aimed to accelerate planned investments to boost northern capacity to 3 million tonnes by the end of 2010. A company spokesman said a new plant could be built near the coastal town of Tetouan.

Lafarge Ciments shares were down 0.8 percent at 114.07 dirhams by 1015 GMT on Monday. The stock has gained 25 percent since the start of the year.

Parent company Lafarge and SNI -- an investment firm controlled by Morocco's royal family -- each own 50 percent of Lafarge Maroc, which in turn controls 69 percent of Lafarge Ciments, part of which is listed in Casablanca.