Lafarge set to expand production with three plants
With a plan to open three new plants, cement manufacturer and building solutions provider – Lafarge Africa Plc.
– on 23 March unfolded its business outlook for the year.
Its CEO Peter Hoddinott said the company remains bullish about Nigerian growth potential, assuring that the firm will continue to uphold its standard.
“Our business integration process has been successful and we are optimistic about improving performances in 2016 and beyond, improving value to our shareholders.”
He said integrating LafargeHocim businesses in Nigeria will drive efficiency and ultimately generate synergy savings of N9 billion for the group by mid-2018. The cost of borrowing for the companies will also reduce by 4%.
The company predicted robust growth in the local cement market behind a strong Individual Home Building Segment.
“The Federal Government of Nigeria has also shown strong indications to support Infrastructure growth in the coming year,” Hoddinott said.
“Lafarge Africa will be able to leverage its unique footprint in 2016 with Ashaka returning to growth, ReadyMix securing high volume contracts to support its eight existing and new plants to be inaugurated as well as the new 2.5 million tons cement line due to be inaugurated in Mfamosing in H2.
“In the South Africa market, Lafarge Africa will leverage the 2015 investments within the cement operations with a revamped sales team and route to market. In aggregates, the company will continue to benefit from its strong network delivering results with two new quarries, being opened in the Gauteng market and Ready-Mix growth.