Displaying items by tag: Nigeria
Dangote Cement presents trucks to distributors
04 August 2020Nigeria: Dangote Cement has presented 82 brand new trucks to its distributors to improve product distribution logistics to other retailers. A ceremony was held at the Enugu assembly plant of Shacman Truck following a driver training session, according to the Punch newspaper. The cement producer said that the trucks were presented under its Truck Empowerment Scheme, where distributors pay for the trucks on a 50-month instalment basis.
LafargeHolcim reports return to normality as lockdowns end, despite punishing first half
30 July 2020Switzerland: LafargeHolcim says that net sales in each of its five regions ‘returned to prior-year levels by the end of June 2020’ following the easing of coronavirus-related lockdowns. Its net sales fell by 10.8% year-on-year to Euro9.95bn in the first half of 2020 on a like-for-like basis due to the ‘severe’ impact of the lockdowns on construction sites in several of its main operating countries. It also blamed negative currency effects for an additional fall in sales. Its recurring earnings before interest and taxation (EBIT) dropped by 22% to Euro1.11bn. Its net debt decreased by 15.8% to Euro9.91bn from Euro11.8bn. Cement sales volumes fell by 13.1% to 87.2Mt, aggregates by 6% to 114Mt and ready-mix concrete (RMC) by 18.6% to 19.2Mm3.
Group chief executive officer Jan Jenisch said, “Our half-year results demonstrate the great resilience of our business. I’m encouraged by our team’s agility to weather the storm with the rapid execution of our ‘Health, Cost & Cash’ action plan, effectively driving cost savings ahead of expectations, improving net working capital and delivering record free cash flow.” He added, “The peak of the crisis is behind us. We expect a solid second half of the year based on June’s full recovery, the trend of our order book and upcoming government stimulus packages.”
By region the group noted the most severe coronavirus-related disruption in Asia-Pacific despite China delivering a full recovery and growing sales volumes by the end of the second quarter. In Europe lockdowns in the UK and France had a particular impact and it said that, “volumes suggest a V-shaped recovery in June 2020 for the majority of markets, except in the UK.” Significant impacts were noted in Ecuador, Colombia and El Salvador in Latin America. Sales volumes declined in Algeria, Egypt, Iraq and South Africa in the group’s Middle East Africa region but Nigeria delivered a ‘resilient’ performance. Finally, North America was the groups best performing region with slight dips in cement and aggregate sales volumes but a rise in RMX and rising recurring EBIT. This was attributed to, “fast and effective cost management in the US.”
Nigeria: Dangote Cement recorded a net profit of US$422m in the first half of 2020, up by 5.8% year-on-year from US$308m in the first half of 2019. Net sales were US$1.23bn, up by 2% from US$1.21bn. Nigerian sales made up 70% of the total at US$861m, up by 1.2% from US$850m.
The company said, “Most Covid-19 lockdown measures started at the end of March 2020 and peaked in April 2020. The response by the authorities varied in nature from specific temporary restrictions in some countries to a complete temporary lockdown for non-essential businesses. Our operations in South Africa, Congo and Ghana were shut down due to full or partial lockdown in most of April 2020. By early May 2020, lockdown had eased, and all our businesses were operational.”
Regarding its Nigerian operations, it said, “Lagos, Abuja and Ogun states locked down from 31 March 2020 to 4 May 2020. As a result, April 2020 volumes were heavily impacted and 28% lower than in April 2019. Other states joined with complete or partial lockdown during the month.” It estimated that a recession would strike the economy before 31 December 2020, compounded by the Covid-19 outbreak and a first-half global oil price slump.
BUA Cement to build cement plant at Guyuk
06 July 2020Nigeria: BUA Group subsidiary BUA Cement has shared plans to establish a 3Mt/yr-capacity integrated cement plant in Guyuk, Adamawa State. The Sun newspaper has reported that the company also plans to establish a 50MW power plant in nearby Lamurde, also in Adamawa State. BUA Group chairman Abdul Samad Rabiu said, “We will use new technologies to supply power to the proposed cement plant and communities of Guyuk and Lamurde.” The state’s limestone deposits with provide the raw material for clinker production.
Nigeria: Dangote Cement has dispatched 27,800t of clinker to Senegal from its new Lagos cement terminal in Apapa Port, Lagos State. M2 Presswire News has reported that the terminal will now begin dispatches of 984,000t/yr of clinker to Cameroon. Dangote Cement aims to serve the whole of West Africa with 4Mt/yr of clinker exports from the terminal. Manufacturers Association of Nigeria (MAN) acting director general Chuma Oruche said, “The export of clinker by Dangote Cement will be beneficial to the Nigerian economy in terms of export earnings, job creation and wealth creation for families connected with these achievements.”
Nigeria: Sinoma Construction Nigeria says it has completed the construction of a second 6000t/d line at BUA Group subsidiary Obu & Edo Cement’s Edo cement plant, bringing the plant’s total integrated capacity to 5.5Mt/yr. The subsidiary of China-based Sinoma said that it completed the work in spite of an outbreak of malaria and electricity shortages. It said, “The successful fulfilment of the project has laid a solid foundation for the company's in-depth localised operation and comprehensive cooperation with the BUA Group.”
Nigeria: Denmark-based FLSmidth has secured a contract with Dangote Cement for the supply of hot kiln alignment services for 16 kiln lines across Africa. 10 of the lines are installed across three plants in Nigeria, with the remaining six situated in Republic of the Congo, Ethiopia, South Africa, Tanzania and Zambia. The contract will endure until 2026.
Dangote Cement said that it chose FLSmidth to help it achieve ‘uninterrupted cement production and dispatch around the clock. Dangote Group deputy managing director Arvind Pathak said, “The equipment health audits, services, and support extended by FLSmidth have helped us maintain our pyro process equipment with good reliability. Hot kiln alignment is an excellent preventative maintenance strategy.”
FLSmidth says that it conducts 250 hot kiln alignments worldwide annually.
Nigeria: Dangote Cement has recorded earnings before interest, taxation, depreciation and amortisation of US$293m in the first quarter of 2020, up by 2.2% year-on-year from US$287m in the first quarter of 2019. Sales rose by 3.8% to US$639m from US$616m. Cement sales volumes fell by 0.6% amid a total suspension of South African operations from late March 2020 due to the coronavirus lockdown.
Dangote Cement chief executive officer (CEO) Michael Puchercos said, “2020 started strongly, with growth across the board despite the early effects of the COVID-19 pandemic. We are closely monitoring all markets according to the guidance provided by the authorities in each country. We continue to provide superior services and deliver high quality products to our customers.”
Nigeria: Lafarge Africa says it is preparing for reduced revenue in the second quarter of 2020 due to subdued activity in the construction sector caused by lockdown measures related to the coronavirus outbreak. Its revenue grew by 10% year-on-year to US$164m in the first quarter of 2020 from US$149m in the same period in 2019. Its profit after tax more than doubled to US$20.8m. First quarter sales were driven by growing cement sales that compensated for slowing aggregate and concrete sales. Managing director Khaled El Dokani said that despite, short-term disruptions due to the epidemic, the subsidiary of LafargeHolcim was confident of the resilience of its business.
Nigeria: Lafarge Africa has appointed Adebode Adefioye as its new chairman with effect from 4 June 2020. He succeeds Mobolaji Balogun, who has decided to retire from the role.
Adefioye, a non-executive director of the company, is the chairman of the board finance and strategy committee, chairman of the board property optimisation committee and a member of the nominations, governance and remuneration committee. He has also served on the statutory audit committee and the risk management and ethics committee.
Adefioye holds over 32 years experience in different industries and is a graduate of the University of Lagos with Masters of Science degree. He is a member of the Institute of Directors and the Institute of Public Analysts of Nigeria. He was appointed to the board of directors in late 2012 and currently sits on the boards of Wema Bank and Eterna. He also resides on the governing council of Bank Directors Association in Nigeria. Adefioye will step down from all board committees of Lafarge Africa on assumption of the role as chairman of the board.
Balogun has worked for Lafarge Africa for over 15 years, having joined the board in 2005. He served for the first 10 years as a non-executive director and was appointed chairman in mid-2015.