Nigeria: The management of United Cement Company of Nigeria (UniCem) has disclosed that the company will suffer losses totalling US$45.2m in 2015 due to the economic downturn currently affecting Nigeria, including devaluation of the Naira.
"The devaluation of the Naira impacts negatively on our business because most of our transactions, like procurement of spares and materials, payment of some of contractors (Macmahon and CBMI), energy cost and servicing of foreign creditors, are basically US$-denominated. Cumulatively, we will have a revenue loss of US$45.2m in 2015 due the devaluation of the Naira," said managing director Olivier Lenoir.
The construction of the line II project at Mfamosing, Akamkpa in Cross River State is on course and will provide employment for hundreds of workers. "This project will at peak employ a total manpower of 1915. At this moment the manpower working in the project is 1290. The operations will determine what the manpower need will be when we handover the project," said Lenoir. "The captive power plant is 85% complete and the civil construction of the second line is at 38%." He added that the major challenges in the project are non-technical and include high level of malaria infection, heavy rainfall and customs clearance problems. Lenoir said that, despite these hitches, UniCem is optimistic that the project will be completed on schedule by September 2016.
