Lafarge says expansion of Nigerian unit progressing
Lafarge, said on Wednesday the expansion of its unit to double Nigerian output to around 4Mta was progressing.
Lafarge had signed a deal last year with Chinese supplier CBMI, which is part of China’s Sinoma International Group, to expand its Nigerian unit Lafarge Cement WAPCO and raise output from 2Mta.
"The ongoing 2.2Mt expansion project is progressing," the local unit said in a notice announcing its 2008 full-year results.
"Total estimated cost is EUR350m; to be financed by syndicated bank loans and EUR125m internally generated cash flow," WAPCO said in the notice.
The cost of the project was not disclosed when the contract was signed last June in Paris.
Lafarge had said then that the deal was part of its programme to build 45Mt of new cement capacity between 2006 and next year, to meet growing construction needs in emerging markets.
Africa’s top oil and gas producer has seen a strong construction boom in the last six years, which has driven demand for cement to around 14 million tonnes per year from 8 million tonnes previously.
Lafarge Cement WAPCO posted a five per cent rise in its full-year to December 31, 2008.
Published under Cement News
