Displaying items by tag: Nigeria
Nigeria: Lafarge Africa has delayed publication of its annual results for 2018. It blamed the delay on ‘pending actions required for the resolution of key matters relating to the closure of its annual financial statement. It says it will release its audited financial statement by the end of June 2019. The subsidiary of LafargeHolcim reported a net loss of US$28.8m for the first nine months of 2019 compared to an income of US$2.61m in the same period in 2017, although it managed to grow its revenue on a year-on-year basis.
Nigeria: Dangote Cement has published its first sustainability report following Global Reporting Initiative (GRI) standards. Key data from the report include a CO2 emissions per tonne of cementitious material of 687kg CO2/t across all operations. Its total CO2 emissions were 16.4Mt. In 2017 it reported estimated total CO2 emissions of 8.45Mt from its domestic operations. The cement producer had an energy consumption of 52M GJ 2018. It had a 49% production capacity utilisation rate at its Nigerian plants. The group said that it supported 37,000 direct, indirect and induced jobs in Nigeria.
ARM Cement sells assets for US$50m
21 May 2019Kenya: ARM Cement has signed a deal to sell its business in Kenya to the National Cement Company for US$50m. The transaction is subject to customary regulatory approvals, according to the Business Standard newspaper. ARM Cement also has operations in Tanzania, Rwanda and some interests, in the form of unexploited mineral deposits, in South Africa.
“This transaction is in line with National Cement’s growth strategy in Kenya to position itself as the leading cement manufacturer in the region. The industry is poised for growth and we are excited about the prospects for this next chapter of our business. We will endeavor to safeguard the interests of all stakeholders including the employees, customers, and suppliers in the overall interest of Kenya,” said Narendra Raval, chairman of National Cement.
The cement producer was placed under administration in August 2018. In late 2018 Oman’s Raysut Cement said it planned to buy ARM Cement as part of its expansion plans. Nigeria’s Dangote Cement was also linked to a potential purchase of the company.
Nigeria: Ogbonnaya Onu, the Minister of Science and Technology, has inaugurated a pozzolana cement plant at Bokkos in Plateau state. The plant is currently being commissioned, according to the News Agency of Nigeria. The 5000t/yr grinding unit is intended to produce low cost cement. It consists of six sections: materials handling; grinding; nodulisation; calcination; milling; metering; and bagging. The plant is being run in conjunction with the Nigerian Building and Road Research Institute (NBBRI).
Dangote Cement’s earnings down in first quarter of 2019
30 April 2019Nigeria: Dangote Cement’s earnings have fallen due to elections and price cuts in Nigeria and competition in the rest of Sub-Saharan Africa. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 11.2% year-on-year to US$312m in the first quarter of 2019 from US$351m in the same period in 2018. Sales revenue fell slightly to US$670m, due to declines in Nigeria. Cement sales volumes grew slightly to 3.99Mt in Nigeria and by 4.8% to 2.35Mt in the rest of Africa. Despite this Dangote Cement noted that its sales volumes in Nigeria were its third-highest quarterly volume ever.
“It was a challenging quarter with delays to the Nigerian elections that impacted sales, increased discounting in Nigeria and tougher market conditions in South Africa and other Pan-African markets. In addition, our variable costs were hit by foreign exchange effects, as well as higher fuel and distribution costs,” said Joe Makoju, group chief executive officer (CEO) of Dangote Cement.
Nigeria: The Cement Company of Northern Nigeria’s (CCNN) profit rose in 2018 following its merger with Kalambaina Cement. Its profit after tax grew by 77% year-on-year to US$15.9m in 2018 from US$8.9m in 2017, according to the Punch newspaper. It produced 0.76Mt of cement in 2018 and it sold 0.74Mt. The company is planning to expand its production distribution in north-east and north-central regions as it does not expect the north-west to absorb its enlarged production capacity of 2Mt/yr.
BUA Group orders power plant from Wärtsilä
23 April 2019Nigeria: BUA Group has ordered a 48MW power plant from Finland’s Wärtsilä for a new production line at its Sokoto cement plant. The power plant will operate without connection to an electricity grid and it will operate on five Wärtsilä 34DF dual-fuel engines, running primarily on liquified natural gas (LNG) but with the capability to switch to low pour fuel oil (LPFO) if necessary. The site’s two existing power plants operate on heavy fuel oil (HFO).
The Wärtsilä equipment is scheduled for delivery at the end of 2019, and the new plant is expected to become operational in mid-2020. No price for the order has been disclosed.
Ebonyi state government backs Ebocem plant project
23 April 2019Nigeria: David Umahi, the governor of Ebonyi state, has approved plans to set-up the Ebonyi Cement plant (Ebocem) at Ogboto in Ishielu. The local government will hold a 10% stake in the project, according to the Nigerian Tribune newspaper.
Cement board plant for Nigeria
22 April 2019Nigeria: Sinoria FABCOM, a Chinese building materials and structural engineering firm, has announced plans to open a fibre cement board manufacturing factory in Abuja. The company, which is part of the Chinese global giant Sinoma, already has an industrial complex in Kuje Abuja, where it makes roofing products.
Liuxing Wang, Managing Director of Sinoria FABCOM, said that the new line of products would be the first of their kind to be manufactured in West Africa. He added that his company had decided to diversify into fibre cement board due to Nigeria’s raw materials and the success that it has already had with its stone-coated roofing sheets in the country.
Wang further commended the administration of President Mohammadu Buhari for creating the ‘right atmosphere for industrial growth’ of the country, noting that within the next decade Nigeria stands the chance of becoming an industrial giant.
Aliko Dangote raises import difficulties with Benin
10 April 2019Benin: Aliko Dangote, the chairman of Nigeria’s Dangote Cement, raised the issue his company has with exporting cement to Benin. He said this company could not export cement to Benin despite its Ibese plant in Nigeria being under 30km from the border, according to the Vanguard newspaper. He alleged that the country was importing ‘more expensive’ cement from China instead.
Dangote made the comments in an interview with Mo Ibrahim at the 2019 Ibrahim Governance Weekend in Abidjan, Ivory Coast. He also said that he looked forward to the Continental Free Trade Area (CFTA) making trade easier in the region.