Displaying items by tag: Nigeria
Adepeju Adebajo resigns from Lafarge Africa
05 April 2017Nigeria: Adepeju Adebajo has resigned as an executive director of Lafarge Africa. Adebajo was the Managing Director, Wapco Operations and then Managing Director, Geo-Cycle and Project Management Office at Lafarge Africa. Her resignation from Lafarge follows her appointment as the Honourable Commissioner for Agriculture in Ogun State.
Nigeria/South Africa: Gas shortages in Nigeria significantly impaired Lafarge Africa’s performance in 2016 in addition to local currency devaluation and a recession. Overall the group’s sales, which include those in South Africa, fell by 18% year-on-year to US$716m in 2016 from US$871m in 2015. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 57% to US$94.6m from US$219m. Despite these problems the cement producer’s results rallied in the fourth quarter of the year, aided by changes in fuel supplies and other cost savings.
“Our turnaround plan delivered solid results in the fourth quarter of 2016 in spite of the challenging environment in Nigeria and South Africa. Technical challenges have been resolved with all our plants operating at high reliability. Our energy optimisation plan has proved successful with increased use of alternative fuel to offset gas shortages,” said Michel Puchercos, the chief executive officer of Lafarge Africa. He added that the Mfamosing line 2 is now operational and contributed to cement production in the fourth quarter of 2016. The new line is expected to enhance cost reductions in 2017.
By region, the group’s cement sales volumes in Nigeria fell by 15.4% to 5.29Mt in 2016 from 6.26Mt in 2015. A similar decline in sales volumes was also reported in the fourth quarter. The cement producer declined to provide detailed information on its operations in South Africa saying that the operating environment was challenging and ‘highly’ competitive. It did report that sales volumes of cement fell by 8% in 2016.
Nigerian Government commends Dangote Cement for role in self-sufficiency in cement industry
20 March 2017Nigeria: Kayode Fayemi, the Minister for Solid Minerals Development, has commended Dangote Cement’s role in making Nigeria self-sufficient in cement. He said that it was a success story that the country had moved from importing 60% of its cement to meeting local demand with excess available for export. The Cement Manufacturing Association of Nigeria originally declared the country ‘self sufficient’ for cement in 2012.
“We need to collaborate and partner in these areas at this time that government is trying to reduce the dependence on oil. We need to turn around our mineral resources just as in the cement sector. When you look at our solid mineral industry, there is a wide gap between what we can produce and what is consumed. Imports in these sectors is huge,” said Fayemi. He added that the government wants to replicate the success of the cement industry in other non-oil sectors to diversify the economy. He made the comments as part of a tour to the Ibese plant in Ogun State.
Dangote Cement saw its earnings before interest, taxation, depreciation and amortisation (EBITDA) fall in 2016 as the Nigerian economy entered a recession. Despite this it grew its revenue and sales volumes with an emphasis on growth outside of its home country. The cement producer exported 0.4Mt of cement in 2016. However, the company has also faced allegations of dumping in Ghana.
Nigeria: Dangote Cement’s earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 2% year-on-year to US$817m in 2016 from US$834m in 2015. However, its sales revenue rose by 25.1% to US$1.95bn from US$1.56bn and its sales volumes of cement rose by 25% to 23.6Mt from 18.9Mt. The cement producer reported a particular increase in sales volumes, revenue and earnings outside of Nigeria and it said that its export sales have turned Nigeria into a net exporter.
“We exported nearly 0.4Mt into neighbouring countries and in doing so, we achieved a great milestone by transforming Nigeria into a net exporter of cement. This is a remarkable achievement, given that only five years ago, Nigeria was one of the world’s largest importers, buying 5.1Mt of foreign cement at huge expense to our balance of payments. We will increase our exports substantially in 2017,” said chief executive officer Onne van der Weijde. He added that despite some local and temporary disruptions in Ethiopia and Tanzania, the cement producer strengthened its market share in every country. Operations are also due to start in the Republic of Congo and Sierra Leone in 2017.
By region, Nigeria’s economy entered into a recession in 2016. Dangote Cement increased its domestic sales volumes by 11.1% to 14.8Mt from 13.3Mt, although it said that its fourth quarter was hit by a price increase in September 2016. Despite the poor economic situation in the country it said that overall cement sales grew by 5.7% in 2016. Outside of Nigeria it increased its cement volumes by 54% to 8.64Mt from 5.61Mt, aided by the opening of a plant in Tanzania.
Smuggled cement from Nigeria dropping price in Cameroon
08 February 2017Cameroon: Cement illegally smuggled across the border from Nigeria to northern Cameroon has lowered the price of cement by 20% in the north of the country. Dangote branded cement is allegedly being smuggled into the country despite a ban on imports, according to the Business in Cameroon journal. The situation is causing a price disparity of up to 40% between the north and the south of the country. Cameroon restricted imports of cement following the construction of new plants.
Nigeria/South Africa: Bolloré Logistics has detailed its work on two cement plant projects in Nigeria and South Africa working with China’s CBMI Construction. Teams from the logistics and transport firm in China and Africa have managed both projects.
Supplying equipment to the United Cement Company of Nigeria (Unicem) plant near Calabar involved transporting 500 twenty-foot equivalent units (TEU) and 150,000 freight tons of project cargo with the shipment of 12 break bulk vessels to the Calabar Port. This was completed by more than 5000 round trips from the port to the construction site by truck. This project also included transporting cement mills, ‘out of gauge’ items of cargo that weigh 125t each. Two multi-axle hydraulic trailers were used to transport these 14 pieces of cargo in one shipment. A preliminary road survey and subsequent adjustments to the road infrastructure quality were required for successful delivery.
Work on a 3000t/day PPC plant in Lichtenburg started in August 2015 and is expected to be completed in the autumn of 2017. Bolloré Logistics secured the break bulk sea transportation and inland transport of the construction material and cement plant equipment cargo. To date, 200 TEUs have been moved to the site and 45,000t of freight cargo have been transported from Jingtang and Tianjin port in China to the plant site in South Africa.
Algeria/Nigeria: CBMI Construction (Sinoma) has issued paperwork passing over completed projects to Lafarge Africa, a part of LafargeHolcim, for projects in Algeria and Nigeria.
A provisional taking-over certificate (PTC) was signed by representatives of Unicem, a joint venture partly operated by Lafarge Africa in Nigeria, at Sinoma’s Beijing headquarters on 18 January 2017. Tomas Lorent, Lafarge Africa Project Manager and Liu Xinwang, CBMI Project Manager signed the paperwork on behalf of their companies. The certificate was signed eight weeks ahead of the contract. The new production line at the Calabar cement plant in Cross River State started operation in the summer of 2016. It includes one of the world’s largest vertical roller mills supplied by Loesche.
Meanwhile, a different PTC was signed on the same day by Didier Michel, Lafarge Algeria’s Project Manager and Gu Jinjun, CBMI Project Manager at Lafarge Algeria’s headquarters in Algiers. The 2.7Mt/yr CILAS Biskra cement plant, a joint operation between Lafarge Algeria and Souakri Group, was commissioned in the summer of 2016.
Cross River state secures licences to set up cement plant
05 January 2017Nigeria: The government of Cross River state has secured operational licenses from the Federal Government to build its own cement plant and limestone quarry in the Akamkpa region of the state. George O’Ben-Etchi, Commissioner for Solid Minerals Development, made the announcement following a meeting with the Solid Minerals Development Board, according to the Daily Trust newspaper. The plant and quarry are intended to compliment the state’s Superhighway project.
Bua Group to hit 10Mt/yr cement production via upgrades
19 December 2016Nigeria: Bua Group plans to reach a cement production capacity of 10Mt/yr via upgrade projects at its Edo and Sokoto plants by the end of 2018, according to its chairman and chief executive officer Abdul Salman Rabiu. He made the comments to local press at the company's 2016 annual customer forum and awards ceremony in Abuja.
Loesche reports on Unicem Calabar cement plant order
30 November 2016Nigeria: Loesche has released details on its order for the United Cement Company of Nigeria (Unicem) cement plant at Mfamosing, near Calabar in Cross River State, which was commissioned in September 2016. The order was for two vertical roller mills (VRM): one type LM 60.4 for grinding cement raw material and one LM 70.4+4 CS, the biggest Loesche VRM built for grinding cement clinker.
Loesche worked with Renk to develop the Compact Planetary Electrical (COPE) drive due to the high power requirements of the LM 70.4+4 CS mill. This mill was designed for a capacity of more than 370t/hr to a fineness of 4700 Blaine that required a drive system that could power it up to 8800kW. So the COPE system was designed for mill drive powers ranging from 4000 – 15,000kW. The COPE gearbox is also equipped with eight individual drive units, which are each designed for a capacity of 8800kW, allowing for redundancy in case of unit failure.
Other notable highlights of the installation that Loesche have highlighted include the equal size as standard drive units for VRMs that allow for the exchange of conventional gearboxes with the setup. The installation is also the first usage of an eight-drive unit in a VRM gearbox and the first time a multiple drive in a VRM can operate with or without a variable frequency drive.
Delivery of the order started in October 2015. First production of cement on the new production line began in September 2016. The new line increased the plant’s cement production capacity to over 5.5Mt/yr from 2.5Mt/yr. It was built by China’s CBMI Construction.