How UniCem’s creative strategy redefines fast-growing cement industry

The United Cement Company of Nigeria Limited is evolving creative strategies to consolidate its position as the third largest cement manufacturer in Nigeria and ensure that consumers have more than basic understanding of its products.

One key way of doing this is partnering with key professionals in the built industry to educate consumers on cement and concrete applications as well as ensure that the two products are clearly differentiated.

UniCem deployed this strategy last week when it partnered with Hypenica in the “Totally Concrete West Africa” conference held between December 1 and 3, 2014, in Lagos. The conference cum exhibition brought together stakeholders in building and construction, the academia, quarrying and mining, engineering, finance and architecture, among others, who shared knowledge on concrete technology with special focus on road infrastructure in West Africa.

One big take-away from the conference is that cement and concrete makers must train and educate block makers and other key stakeholders on cement applications and right use, a feat that has been achieved by UniCem, having already trained 4,000 block makers, with a target of increasing the number to 5,000 in 2015.

“There is a lot of confusion between cement and concrete,” said Olivier Lenoir, managing director, UniCem, in an interview with Real Sector Watch.

“We are always talking about cement quality but when ready mix or concrete occurs, it is a different topic. The conference has offered a window to share experiences to address the concrete challenges in Nigeria and other West African countries for sustainable construction,’’ Lenoir said.

According to him, UniCem is in the forefront of providing sustainable solutions on cement/concrete product and application to the building construction sector, as it has a strong commitment to the development of concrete technology, sustainable environment and skills of building professionals and artisans in the country.

The UniCem’s MD further said the company is running an expansion programme of its capacity to give itself more flexibility in terms of product range, stressing that the firm has over 30 percent market share in the south-south and south-east parts of the country.

He also stated that the new line with top-line technology will be in full operation by the end of 2016 and will increase the company’s product options.

Another big strategy being mooted by UniCem is to produce pozzolanic cement, using locally available pozzolana (a type of volcanic ash used for mortar or for cement that sets under water), instead of limestone. Currently, UniCem has 100 percent local input content, as it does not import any raw material, including gypsum.

“We are bringing in new solutions. We are working to fast-track the process of despatch and logistics,” said the MD, who also pointed out that energy occupies 60 percent of the company’s production costs.

“When we do not have gas, we have to import low pour fuel oil (LPFO). The main problem we had in the past is the supply of gas and lack of steady supply. Our main objective is to get gas because we are energy intensive,” he stressed.

Vipul Agrawal, UniCem’s marketing director, who presented a paper on ‘Overcoming Local Challenges for Cement Application,’’ emphasised selection of right materials and application of the good practices in concrete construction. Agrawal said as cement is a finished product for UniCem, it is a raw material for block makers, a situation that warrants continued enlightenment of the latter, an exercise which the company takes seriously.

“You may have a very good product but if you do not use it properly, it is useless, “he said.

ODINAKA ANUDU