Lafarge WAPCO responds to rising housing, infrastructure demands

Lafarge WAPCO Nigeria plc, a foremost cement manufacturer and marketer in Nigeria, is responding to rising infrastructure and housing demands in the country by putting plans in place to expand production capacity within five years.

Information gathered from the company shows its current production capacity is 8.5 million metric tons (MT), but the firm has enhanced efforts to ensure it reaches 17 million MT between 2017 and 2018. The cement manufacturer is capitalising on its planned additional 1 billion euros investment in three to four years, having already put a similar sum in the industry between 2008 and 2012.

Lafarge WAPCO, the second largest cement manufacturer in Nigeria, became part of the Lafarge Group following the acquisition of the Blue Circle Group by Lafarge in 2001. Apart from cement manufacture, the firm repairs, rewinds, and refurbishes electrical equipment through its subsidiary company, Portland Electrical Repairs Limited. It also produces paper bags, through its subsidiary, Nigeria KraftBags Limited. Lafarge WAPCO has three plants in the country – one in Sagamu and two in Ewekoro, all in Ogun State.

“The company’s objective of increasing the availability of cement to Nigerians as well as assisting in achieving the Federal Government’s drive for affordable housing for all is our major drive,’’ according to a statement from the company.

Guillaume Roux, CEO for Nigeria and Benin Republic, recently said the expansion of its Calabar and the Ashaka plants was on.

Just like other major players in the industry, the company has ridden on Backward Integration Policy (BIP) introduced by the Federal Government, which limited cement importation to market players committed to developing their own domestic production capacity.

The group’s cement brands include Elephant SupaSet, which caters to the block-making and construction industry, and Lafarge PowerMax, which is a premium brand suitable for large civil engineering projects. There is also Classic Cement brand, which according to the firm, was used to build the Third Mainland Bridge, one of the longest bridges in Africa. It further says its contribution helped to bring the National Assembly Complex to life.

Analysts also attribute enhanced production capacity to excess electricity access. Lafarge WAPCO generates 90 mega watts (mw) but is said to use between 40mw and 50mw, and is even ready to sell to boost electricity in the country.

“WAPCO has achieved a high level of gas utilisation and reliability at its plants, and is currently ahead in this respect. Its plants also have the ability to use Low Pour Fuel Oil(LPFO),’’ said Renaissance Capital (RenCap), in its 2013 Nigerian cement analysis released last October.