Ashaka Cement expansion enters new phase

Ashaka Cement’s (AshakaCem) expansion plans have gone to the next level as the firm has secured N50 billion credit facility, in addition to internally generated cash flows. Similarly, the cement maker has now acquired sufficient limestone and coal reserves to support the existing and new plants, having also signed contracts for equipment and engineering supplies.

The detailed design of the equipment is in progress, while mobilisation of resources has begun. The infrastructure (such as access roads, site preparation, fencing, among others), which are expected to support the erection of the new plant, is now underway, Real Sector Watch findings have shown.

AshakaCem plc, a subsidiary of Lafarge, had a ground-breaking expansion ceremony in April this year in Gombe State, where it revealed plans to pump N100 billion into capacity expansion, coal-fired captive power plant, among other projects. These are estimated to be completed within 24 to 30 months.

In its recent release, AshakaCem said all members of the board of directors and its management team, with support by experts from other Lafarge Group’s businesses across the globe, were currently devoting energy to fast-track the expansion project, in order to guarantee the future of the company, enhance jobs creation in the North-East (where it operates) and deliver economic and social welfare to the immediate communities.

“Two weeks from now, engines will be on ground and by the end of the year the site for the new line will be completely separated, with project infrastructure in place and erection and procurement of contracts negotiated and signed,” the statement said.

Guillaume Roux, country CEO, Lafarge Nigeria and Benin Republic, said Lafarge would be investing about N100 billion in Nigeria over the coming four to five years as a demonstration of its commitment to the economic growth of the country. This commitment, according to him, also aligns with its strategy to deploy its strength as a global leader with over 175 years in building materials to provide solutions that meet global standards that fit the requirements of its customers.

While commented on the recently announced planned consolidation of Lafarge Group’s shareholding in AshakaCem, UniCem, Atlas and Lafarge South Africa, Roux said Lafarge Group’s shares in these entities would be consolidated into Lafarge WAPCO, which would then transform to Lafarge Africa plc to reflect the vision for the new company.

He emphasised that the consolidation of the Lafarge Group’s shareholding in Nigeria was not a merger of the entities involved, but that the transaction was rather a necessary step to speed up the expansion project particularly in Ashaka.

Umaru Kwairanga, chairman of the Board of AshakaCem plc, disclosed that Lafarge Group was committed to the capacity expansion project in Ashaka and would deploy its global expertise in procurement and erection of new cement plant.

“Given the extent of preparatory work that has been done, the project is a reality and will soon become visible to all stakeholders,’’ he said of the ongoing project.

He further noted that AshakaCem had in the last forty years of its establishment operated in harmony with all its neighbouring communities as the partnership was working to the mutual benefits of both parties, saying that the firm had in the last three years spent N400 million on community related project.