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AshakaCem to fast-track N100bn expansion project

By BusinessNews Staff on July 15, 2014

The Board of Directors of AshakaCem Plc and the management team with support from other Lafarge Group’s businesses across the globe have agreed to fast-track the expansion of the company’s N100bn cement plant in the North-East.

The move, it was learnt, became imperative in order to guarantee the future of AshakaCem, enhance jobs creation in the North-East and deliver economic and social welfare to the immediate communities.

The ground-breaking ceremony of the project was done in April by President Goodluck Jonathan and ushered in a new phase in the capacity expansion project of the company

Having secured sufficient limestone and coal reserves to support the existing plant as well as the new one, it was learnt that contracts had been signed with the main equipment and engineering suppliers.

For instance, to ensure the timely delivery of the project, the detailed design of the equipment as well as mobilisation of the sources has commenced.

The Chairman, Board of Directors, AshakaCem, Alhaji Umaru Kwairanga, confirmed these developments in Abuja when he disclosed that the Lafarge Group was committed to the capacity expansion project of the firm.

He added that the group would deploy to the fullest its global expertise in procurement and erection of new cement plants.

Kwairanga noted that credit facility lines of about N50bn had been secured and signed in addition to internally generated cash flows to support the expansion project.

In addition, he expressed confidence that given the extent of preparatory work that had been done; the project would soon become visible to all stakeholders.

He said, “AshakaCem in the last 40 years since its establishment has operated in harmony with all its neighbouring communities and this partnership is working to the mutual benefits of both parties.

“The company’s Corporate Social Responsibility projects continue to focus on the provision of potable water, health care, education and youth empowerment.

“In the last three years alone, the company has spent the sum of N400m on community related projects and there is the opportunity for the company to do more as this partnership thrives”

The Country Chief Executive Officer, Lafarge Nigeria and Benin Republic, Mr. Guillaume Roux, stated that the investment of N100bn in Nigeria was a demonstration of its commitment to the economic growth of the country.

This commitment, according to him, also aligns with the company’s strategy to deploy its strength as a global leader with over 175 years in building materials.

He noted that the huge experience of the company would be an added advantage towards providing solutions that meet global standards and fit the requirements of its customers.

[Punch]

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