Displaying items by tag: Zambia

Zambia: Chilanga Cement says that Nason Kasoma, the Deputy Plant Manager of its Ndola cement plant, has died in a road traffic accident. He had been in post since the start of 2022. Kasoma had worked at the Ndola plant for Chilanga Cement and Lafarge Cement Zambia in a variety of maintenance and operations roles from the late 1990s.

Huaxin Cement revealed this week that it is buying Holcim’s majority stake in Lafarge Africa for US$1bn. The moment marks a big step in the China-based cement producer’s international ambitions. It has been linked in the financial media to many divestments around the world in recent years. Yet this appears to be its largest acquisition so far and it adds to what is becoming a serious sized multinational business in Sub-Saharan Africa.

The details of the deal are that Holcim has agreed to sell its 83% share of Lafarge Africa to Huaxin Cement. Lafarge Africa operates four integrated cement plants in Nigeria at Sagamu and Ewekoro in Ogun State, at Mfamosing in Cross River State and the Ashaka Cement plant in Gombe State. It has a combined production capacity of 10.5Mt/yr. The transaction is expected to close in 2025 subject to regulatory approvals.

Holcim holds a relationship with Huaxin Cement that dates back to the late 1990s when it first bought a stake in the company. Following the formation of LafargeHolcim in the mid-2010s, Lafarge’s subsidiary Lafarge China Cement was sold to Huaxin Cement. At the end of 2023 Holcim reported that it owned just under a 42% share in the company. Huaxin Cement has also bought assets from Holcim as the latter company has divested subsidiaries over the last decade. In 2021 it bought Lafarge Zambia and Pan African Cement in Malawi from Holcim. This adds to other acquisitions in the region. In 2020 it purchased African Tanzanian Maweni Limestone from ARM Cement. Later in 2023 it picked up InterCement’s subsidiaries in Mozambique and South Africa. In addition, in October 2024 local media in Zimbabwe reported that the company was planning to build a grinding plant. Now, throw in the plants in Nigeria and Huaxin Cement is the second biggest cement producer in Sub-Saharan Africa after Dangote Cement.

Huaxin Cement said it had an overseas cement grinding capacity of just under 21Mt/yr at the end of 2023. However, this figure included plants in Cambodia, Kyrgyzstan, Nepal, Oman, Tajikistan and Uzbekistan. Data from the Global Cement Directory 2024 suggests that the company now has 10 integrated cement plants in Sub-Saharan Africa with a cement capacity of around 18Mt/yr. It also operates a number of grinding plants in these countries.

The Lafarge Africa deal is significant because a mainland China-based cement producer has finally hit the US$1bn window in merger and acquisition (M&A) activity overseas. Many potential acquisitions in the sector are linked by the press to Chinese companies these days. However, most of the activity to date has been of a plant-by-plant or piecemeal nature. Alternatively, these companies have been building their own plants around the world as part of the Belt and Road Initiative. Taiwan Cement Corporation (TCC) has spent more buying itself into Türkiye-based OYAK Cement since 2018 but it is headquartered in Taipei.

The question from here is how much further does Huaxin Cement plan to expand both in Africa and beyond? The obvious answer is that it will keep going given the state of the cement sector back home in China, the retreat of the western multinationals and the demographic trends in the region. World population growth is predicted to be fastest in Africa in the coming decades and demand for cement should follow. Outside of Africa, the ‘big’ one recently has been InterCement in Brazil. Unfortunately for Huaxin Cement though, InterCement extended its exclusivity deal with Companhia Siderúrgica Nacional (CSN) in November 2024. If the Lafarge Africa transaction completes then it will be the biggest deal yet and it will welcome a China-based cement company to the big league of international M&A. It may just be the start.

Zambia: China Zambia De Jin Xin Cement plans to invest US$170m in the Zambian economy to build a cement plant, a power plant, a mine and a high calcium powder plant, according to ZNBC. The construction is expected to begin in November 2025, according to the company's director, Jianbao Zhao. This investment will reportedly create over 1000 jobs during the construction phase and more than 500 permanent positions once operational.

Zambia: Chilanga Cement has announced its results for the first half of 2024. Its sales rose by 34% from US$34m in the first half of 2023 to US$45.5m in the reporting period. Profit before tax more than doubled from US$4.2m to US$11.8m.

Zambia: Chilanga Cement has commissioned a US$20m kiln upgrade project, known as the Phoenix Project, at its Ndola plant. This initiative will double the plant's cement production capacity from 500,000t/yr to 1Mt/yr.

Zambia: Grizzly Mining has announced an investment of US$200m to establish a cement plant in Solwezi, Northwestern Province. The announcement was made by the company’s vice chairperson Abdoul Ba during an interview, according to the Times of Zambia.

Zambia: Chilanga Cement has started lime production at its Ndola plant. The new lime unit at the plant has a production capacity of 108,000t/yr, according to the Times of Zambia newspaper. The project had an investment of US$5m. The subsidiary of Switzerland-based Holcim has launched a new lime produced called ‘PAWA Lime’ targeted at the mining and industrial sectors.

UK: Aggregates Industries has appointed Kaziwe Kaulule as Group Strategy and Commercial Growth Director.

Kaulule previously worked as the chief executive officer (CEO) of Lafarge Industries South Africa from 2020 to July 2023. Prior to this he was the CEO of Lafarge Cement Zimbabwe from 2018 to 2020. He has worked for Holcim Group since the mid 2000s holding audit roles for Lafarge in France before moving on to management positions in Zamabia. He holds a master of business administration (MBA) from the University of Oxford's Saïd Business School, a bachelor’s degree in commerce and a bachelor’s of science from the University of Cape Town.

Nigeria: Dangote Cement sold 13.4Mt of cement during the first half of 2023. Its sales volumes outside Nigeria were 5.4Mt, up by 12% year-on-year from 4.9Mt in the first half of 2022. The producer noted 'robust demand' in Ethiopia, the Republic of Congo, Senegal and Zambia. It reported revenues worth US$1.23bn in the first half of 2023, up by 17% from first-half 2022 levels. KOGI Reports News has reported that the producer's profit after tax rose by 3.8% in the half, to US$232m.

Chief executive officer Arvind Pathak said "Dangote Cement delivered positive results in the first half of the year. Our Nigeria operations achieved a 23% quarter-on-quarter recovery in sales during the second quarter of 2023, which was impacted by the general elections and the 'cash crunch.' However, the steep currency devaluation in mid-June slowed this volume recovery and increased already inflated operating costs." He added “We will continue to focus on our strategic growth priorities, hinged on our vision of transforming Africa and building a sustainable future. I am optimistic that our business remains resilient and well positioned to overcome unforeseen macroeconomic headwinds.”

Tanzania: Tanzania Ports Authority (TPA) plans to expand the capacity of the 54,000t/yr port of Kasanga on Lake Tanganyika in Rukwa Region. Mbeya Cement Company exports 42,000t/yr of cement via its terminal at the port to the Democratic Republic of Congo and Zambia. The port has been undergoing a US$1.92m upgrade to raise its berths due to rising water levels in Lake Tanganyika since April 2019.

The port of Kasanga generates revenues of US$34,200/yr for the TPA, primarily from Mbeya Cement Company’s export operations.