Lafarge signed an agreement with Chinese supplier CBMI Ltd to expand its Nigerian plant and double output to 4Mta, Lafarge’s Nigerian unit said on Thursday. Lafarge said the deal signed in Paris on Monday was a demonstration of its faith in the Nigerian economy and a response to ballooning local demand for cement. Nigeria’s Lafarge Cement WAPCO did not state the value of the contract or say when it would be completed by CBMI, which is part of China’s Sinoma International Group.
"This investment is expected to increase the company’s production from the present 2Mta of cement to 4Mta," Lafarge said.
The deal is part of Lafarge’s programme to build 45Mt of new cement capacity between 2006 and 2010, in order to meet growing construction needs in emerging markets.
Two weeks ago Lafarge WAPCO shareholders gave company directors the go-ahead to raise NGN75bn (US$637m) in new equity to build a new production line.