Displaying items by tag: Nigeria
BUA plant commissioning increases Nigeria’s capacity further
31 August 2017Nigeria: The Nigerian Vice President Yemi Osinbajo commissioned the 3Mt/yr second kiln line at the BUA Obu Cement plant at Okpella, Edo State on 30 August 2017. He had earlier performed the ground-breaking ceremony at the start of the construction phase of the line. Once the line is fully commissioned in early 2018, it will bring the plant’s capacity to 6Mt/yr.
"This project is a big boost to the Nigerian economy and it will provide employment opportunity for both the skilled and unskilled youths of this state and the country at large," said Osinbajo, adding that the plant's capacity would consolidate Nigeria's self-sufficiency in cement and be a big boost to the nation's export capacity
Dangote talks up investments in Europe and North America
18 August 2017Nigeria: Aliko Dangote, chief executive officer (CEO) of Dangote Group and Dangote Cement, plans to invest an incredible US$20 - 50bn in the US and Europe by 2025, in industries including renewable energy and petrochemicals. Speaking in a wide-ranging interview with Bloomberg, Dangote said that the group’s cement activities account for 80% of Dangote’s overall wealth. The new investments would more likely come in renewable energy and agriculture, rather than cement, with an aim to conduct 60% of all investments outside of Africa by 2020.
Dangote Retailers Bonanza proves popular
15 August 2017Nigeria: Over the weekend of 12-13 August 2017 Dangote Cement gave out prizes totalling US$1.3m to its distributors and customers in its on-going Dangote Retailers Bonanza – Season 2. 10 ‘Star Winner’ retailers from the company's West region claimed their prizes. Some went home with 1200 bags of cement and a 40ft container and others won 600 bags and a 20ft container.
The process of awarding the prizes involved moving cement directly to traders, which, according to Dangote Cement, had the desired effect of raising interest among other cement traders.
Funmi Sanni, the West Regional Sales Director, said the decision to take the products to the retailers in their respective place of trade was to prove that the bonanza was real. She explained that the management designed the bonanza to reward its loyal retailers and help them shore up their businesses, saying this is why it has also included containers in the winning package.
Nigeria: Dangote Cement’s sales revenue and operating profit have risen in the first half of 2017 despite a significant drop in sales volumes in Nigeria due to the poor state of the economy. Its sales revenue rose by 41.2% year-on-year to US$1.31bn in the first half of 2017 from US$928m in the same period in 2016 with increased revenue in both Nigeria and the rest of Africa. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 53.7% to US$647m from US$421m. It attributed the rising revenue to improved margins from better efficiencies and a better fuel mix in Nigeria.
“Our revenues have continued to grow despite the lower volumes seen in Nigeria, especially because of the recent heavy rains. Our margins have improved significantly, helped by improved efficiencies and a much better fuel mix in Nigeria. We are using much more gas and increasing our use of coal mined in Nigeria, thus reducing our need for foreign currency and supporting Nigerian jobs,” said chief executive officer (CEO) Onne van der Weijde. He added that the group had seen its first sales from Sierra Leone in the first quarter and that its new plant in the Republic of Congo will be in production at the end of July 2017.
LafargeHolcim to dissolve Holcim Nigeria
19 July 2017Nigeria: LafargeHolcim plans to dissolve its subsidiary Holcim Nigeria. The cement producer will present the final accounts of Holcim Nigeria as part of a voluntary winding up process at a meeting of shareholders in late August 2017, according to Reuters. LafargeHolcim will take on the shares of the unit when it closes. Holcim Nigeria became a part of Lafarge Africa following the merger of Lafarge and Holcim in 2015 and it originally owned a stake in the United Cement Company of Nigeria (UNICEM) along with Lafarge.
Nigeria: Alhaji Abdulsamad Isyaku Rabiu, the chairman of Bua Group, has promised that cement prices will soon fall. He made the comments after meeting with Yemi Osinbajo, the vice-president of the country, according to the This Day newspaper. He cited a fall in the price of low pour fuel oil (LPFO) and more favourable foreign exchange rates. He added that the three major cement producers were working ‘hard’ to reduce prices. However, he did not reveal a date for the reduction.
Lafarge Africa reduces size of board
21 June 2017Nigeria: Lafarge Africa has reduced the size of its board of directors to 11 members from 17. The African subsidiary of LafargeHolcim increased the size of its board followings its formation but following its annual general meeting it has now agreed to decrease it once more. Joe Hudson, Jean-Christophe Barbant, Oludewa Edodo-Thorpe and Thierry Metro have all resigned voluntarily with effect from 8 June 2017.
Nigeria: Dangote Cement has signed an agreement with China Sinoma International Engineering for it to build a 6000t/day cement plant for US$249m. The scope of supply for the integrated production line includes the quarry, cement grinding, equipment procurement and supply, civil construction, mechanical and electrical equipment installation, commissioning and personnel training, according to Reuters. Once the final contract is signed and started the project is forecast to take 27 months to produce cement and 30 months to complete performance testing.
Mallam Suleiman Yahyah resigns from AshakaCem
10 May 2017Nigeria: Mallam Suleiman Yahyah has resigned as chairman from AshakaCem. Yahyah joined the board of directors of the subsidiary of LafargeHolcim in 2010 and became its chairman in 2015.
Dangote Cement builds revenue in first quarter of 2017 despite falling cement sales volumes
02 May 2017Nigeria: Dangote Cement’s sales revenue and earnings rose in the first quarter of 2017 due to higher prices despite a significant fall in cement sales volumes in its home country. Its sales revenue increased by 48.1% year-on-year to US$682m from US$460m in the same period of 2016 and its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 42.3% to US$337m from US$237m. However, its cement sales volumes fell by 6.4% to 6.03Mt from 6.44Mt caused by a drop of 16.5% in Nigeria.
“Dangote Cement produced record financial results in the first three months of 2017. Despite lower group volumes, we delivered significantly higher revenues and EBITDA after realigning prices late in 2016. Our new pricing strategy meant every tonne worked harder for us in Nigeria, delivering 78.4% more EBITDA/t than the same quarter last year,” said chief executive officer Onne van der Wijde. He added the group has started sourcing coal from Nigerian mines run by its parent company, Dangote Industries, and that this had improved margins, reduced its need for foreign coal and the foreign currency required to buy it.
The group has continued to grow its operations outside of Africa to the extent that they represent 28% of its revenue. It reported a ‘good’ start for a new import and bagging facility in Sierra Leone that began operations in January 2017 and stated that it expects to start a 1.5Mt/yr plant in Congo in May 2017.