Displaying items by tag: Lafarge Africa

Nigeria: Raw material costs for a group of major local manufacturers – including BUA Cement, Dangote Cement and Lafarge Africa – accounted for 24% of revenue in 2022. The increase in the cost of raw materials was driven by a shortage of foreign currency, raw material availability, logistics issues at ports and rising energy costs, according to the This Day newspaper. BUA Cement’s spending on raw materials rose by 9% year-on-year to US$54.3m in 2022, Dangote Cement’s spend grew by 12% to US$427m and Lafarge Africa’s expenditure increased by 32% to US$106m. The other companies included as part of the grouping included BUA Foods, Nestlé Nigeria, Cadbury Nigeria, Nigerian Breweries and Dangote Sugar Refinery.

Nigeria: Lafarge Africa has won different awards for its contributions and achievements in sustainability and environmental performance as well as its commitment towards gender inclusion and diversity in the workplace in 2022. These are: the Award for Sustainability Reporting at the 2022 NGX Made of Africa Awards; the Eco-friendly Cement Manufacturing Company of the Year Award at the Environmental Sustainability Conference, Expo, and Awards 2022 (ECOSEA); Environmental Sustainability Professional of the Year for Titilope Oguntuge, the company’s head for Sustainability & Corporate Branding, also at ECOSEA 2022 and; Most Outstanding Company in Gender Inclusion’ (Extractive Industry) at the Women in Marketing Communications Award (WIMCA) 2022.

Organisation and Human Resources director, Gbemiga Owolabi said “At Lafarge, we put people at the heart of everything we do, from promoting diversity in our teams to thriving with our communities, and this was evident in our results. We achieved a 47% representation on our board in 2022 which is a significant increase from 45.5% in 2021 and 40% in 2020.”

Nigeria: Lafarge Africa, Holcim’s subsidiary in Nigeria and South Africa, says that it acheived record full-year results in 2021. Its net sales were US$705m, up by 27% year-on-year from US$554m in 2020. Meanwhile, its recurring earnings before interest, taxation, depreciation and amortisation (EBIT) rose by 43% to US$157m from US$110m.

CEO Khaled El Dokani said "Our 2021 performance showed significant improvement.” He added “We are equally pleased with the progress we are making on sustainability. Our use of affordable clean energy and agro-ecology footprint are in accordance with our net zero pledge journey."

In 2022, the company forecast ‘good demand momentum’ as it continues to maximise volume opportunities across its markets, while actively managing costs. During the year, it also plans to consolidate its sustainability efforts.

Nigeria: Finland-based Wärtsilä has extended its operation and maintenance agreement with Lafarge Africa by another five years. The agreement covers the 100MW Ewekoro power plant, which provides a dedicated supply of electricity to the company’s concrete and cement manufacturing processes. The extension of the deal was signed in July 2021 and it follows a previous 10-year agreement. The scope of the agreement includes the operating crew, performance guarantees, plant availability and spare parts.

The captive Ewekoro plant was supplied and commissioned by Wärtsilä in 2011. It consists of six Wärtsilä 50DF dual-fuel engines, operating primarily on gas, but with the flexibility to automatically switch to liquid fuel in case of a disruption to the gas supply. The engines are also designed to function efficiently with a low-pressure gas supply, a necessity given the region’s vulnerability to supply interruptions.

“We have benefited significantly from the efficient way by which Wärtsilä has operated and maintained this plant for the past 10 years, and we had no hesitation in extending the agreement for a further five years. An uninterrupted reliable supply of electricity is essential to our production, and having our own power plant, built, operated and maintained by Wärtsilä, gives us this assurance,” said Lanre Opakunle, Strategic Sourcing Director, Power & Gas, Middle East & Africa, Holcim.

Wärtsilä has also supplied Lafarge Africa with another 100MW power plant located in Mfamosing.

Nigeria: Lafarge Africa, part of Switzerland-based Holcim, has presented its 2020 Sustainability Report. The company’s sustainability strategy consists of four pillars: climate and energy, circular economy, environment and community. In 2020, it co-processed 71,029t of refuse-derived fuel (RDF) and its water intensity was 201/t of cement. It also says it played a leading role in waste management in Nigeria through its partnership with the Food and Beverage Recycling Alliance (FBRA), creating 3000 new jobs in recycling. In line with its quarry rehabilitation plan, it restored 933ha of land during the year. 9.6% of its energy consumption derived from renewable sources.

Lafarge Africa doubled the number of beneficiaries of its corporate social responsibility (CSR) activities within its host communities year-on-year to 250,000 in 2020. Its investments in community development initiatives to counteract the Covid-19 outbreak and its impact totalled US$2.92m.

Chair Prince Adefioye said “By deploying innovation, we are championing how Nigeria builds better. It is holistic and strategically driven to ensure that we are scaling in reach and impact in the economic and environmental spheres. In the social sphere, we are also deliberately implementing initiatives that further prepare us for the future such as leveraging technology and improving our diversity indicators.”

Nigeria: Lafarge Africa has ranked first on PWR Advisory’s Nigerian Exchange Top 20 companies for gender diversity. 46% of the group’s board seats are female-occupied, up from 40% in 2020.

Chair Adebode Adefioye said “Lafarge Africa's commitment to female representation at the board and management rank and file level is unwavering. Our diversity and inclusion targets, which align with our sustainability strategy, set us apart and are a clear indication of our resolve to continue on this trajectory for more extraordinary outcomes. We remain resolutely committed.”

Nigeria: Lafarge Africa’s revenue grew by 20% year-on-year to US$352m in the first half of 2021 from US$293m in the same period in 2020. Its profit after tax increased by 21% to US$68.8m from US$56.6m.

Nigeria: The first set of female drivers has graduated from the Lafarge Driving Institute (LDI) in Calabar, Cross River state. Lafarge Africa said that this demonstrated its commitment to enabling inclusive workplaces for women, professional gender diversity, road safety through training and the creation of local jobs. The LDI admitted 53 female trainees in March 2021.

The institute was launched in late 2017 in partnership with Lafarge Africa, Automated Integrated Services and the Federal Road Safety Corps. It was set up to improve driver quality and to ensure that heavy goods vehicles (HGV) are manned by professionals who have passed through a training programme.

For those not following the news in Nigeria, a nationwide row has broken out about the cost of cement in the country. Two of the three main local producers have been forced to publicly defend their pricing. Alongside this, the Senate of Nigeria has implored the federal government to encourage further local investment in cement production with the goal of keeping the end price down.

The current debacle started to take form in the autumn of 2020 when the price of cement leapt up by 35%. Builders and those immediately affected started complaining then but the argument really heated up in April 2021 when the local press started comparing the price of cement in Nigeria unfavourably against neighbouring countries. Dangote Cement, one of Africa’s largest cement producing companies and a Nigerian-based one at that, immediately defended itself by pointing out that its ex-factory price was the same or lower than in other African countries. It added that it could not control the price of cement between its factory and the end-consumer with dealers and middlemen benefiting from the gap. A week later the Senate of Nigeria intervened with its members discussing the issue in relation to a bill intended to liberalise the sector. This week, BUA Cement said publicly that it had no plans to raise the ex-factory price of its cement at the present time or in the future, “…barring any material, unforeseen circumstances.”

The roots of the current crisis go back to the mid-2010s when Nigeria declared itself ‘self-sufficient’ in cement after building up its domestic production capacity. At the same time it discouraged imports and embraced exports. Today, the country’s cement production capacity is around 49Mt/yr and annual demand is around 21Mt. This self-sufficiency path reached one milestone for Dangote Cement in 2020 with clinker exports starting from its Apapa terminal and the commissioning of its Onne Export Terminal in Port Harcourt. Under the old narrative for the sector this was a moment for congratulation. Suddenly though, instead of being seen as the saviour of the industry, members of the legislature were asking whether it was a good thing for Dangote Cement to hold a 60% share of the local market with most of the rest shared between Lafarge Africa and BUA Cement.

The price row has seen Dangote Cement promptly suspend exports from those new terminals. It also said it had reactivated its 4.5Mt/yr Gboko plant in Benue State, which was reportedly mothballed in 2018. It is worth noting here that the Gboko plant was part of that national capacity total above despite being mothballed until fairly recently. Aside from the middleman argument, the producer said that its production costs had risen over the past 15 months due to negative currency effects but that it hadn’t increased its ex-factory prices since December 2019.

A survey by the News Agency of Nigeria in the north-east of the country revealed all sorts of speculation about why the price was so high but few facts. Some of the opinions expressed included: the coronavirus outbreak; low production rates at the plants; market middlemen; and transport costs. What is clearer is that the country’s cement production capacity is more than double that of its demand. On paper at least the nation should be able to satisfy its own needs and then export the same again with plenty spare. Yet somehow this isn’t happening. If the government really believes in self-sufficiency it may be time to take another look at the cement sector, the challenges it faces and the needs of the end consumers.

Nigeria: LafargeHolcim subsidiary Lafarge Africa plans to invest US$8m on an upgrade to the electrostatic precipitator filters at the bagging plant at its Ewekero cement plant. The Punch newspaper has reported that the upgrade requires a six-month shutdown of the unit’s kilns to make the changes. Chief executive officer Khaled El-Dokani said that the investment ‘underscores the company’s commitment’ to sustainability.