The completion of ongoing Lafarge-Holcim merger is expected to produce about 14 million tons per annum (Mtpa) of cement.
Already, the merger has increased the production capacity of the firm to 8.5 mtpa.
Additional 5.5metric tons (Mt) is expected from the cement giant by the time it begins full operation. This bring the total capacity to 14 Mtpa. The country’s total demand last year was 21 Mtpa.
Lafarge-Holcim Ltd, was borne out of the merger of equals between Lafarge and Holcim has made its debut on the Swiss and Paris stock exchanges.
In a statement, the firm said the merger created a company with combined sales of $42 billion and operations in 90 countries.
The firm which operates in Nigeria under the brand name of Lafarge Africa, emerged last year through the combination of Lafarge’s Nigerian and South African assets.
Lafarge Africa Plc is listed on the Nigerian Stock Exchange (NSE), rather than Johannesburg, a sign of Lafarge’s growing confidence in the strength of the Nigerian economy, which is Africa’s largest.
Head, Macro Economics and Fixed Income Research at FBN Capital, Gregory Kronsten, said at the time of the listing, the proposal to list on the NSE would have been unthinkable five years ago.
LafargeHolcim through its Nigerian listed arm Lafarge Africa Plc is the leading company in building materials in sub-Saharan Africa and has grown into a diversified building solutions group with broad product portfolio and various iconic brands.
Its presence in Nigeria has helped to shake up the entrenched market by bringing competition, best practices and more choices for consumers.
In accordance with the Group’s strategic vision to create a leading Sub-Saharan Africa building materials company, last year, Lafarge Africa concluded all regulatory processes for the acquisition of Lafarge S.A’s interests in Lafarge affiliate companies.
The affiliate companies and interests held by Lafarge SA and acquired by Lafarge Africa Plc are: AshakaCem Plc 58.61 per cent of the equity shareholding held by Lafarge Nigeria (UK) Limited; and Atlas Cement Company Limited 100 percent of the equity shareholding, held by Lafarge Nigeria (UK) Limited;
Others are Lafarge South Africa Holdings (Pty) Limited 100 percent of the equity shareholding held by Financière Lafarge S.A. Limited; and Egyptian Cement Holding B.V., 50 percent of the equity shareholding representing an indirect holding of 35.00 percent of the equity shareholding of United Cement Company of Nigeria Limited held by Lafarge Cement International B.V.thenation.