Lafarge Africa: Shareholders approve Atlas Cement, UniCem merger
In a bid to consolidate and enhance market share and propel further growth and higher returns to all stakeholders, shareholders of Lafarge Africa Plc on Monday 6th November, 2017, endorsed approved its merger with Atlas Cement and United Cement Company (UniCem).
Lafarge Africa Plc, a leading Sub-Saharan Africa building materials company is a subsidiary of LafargeHolcim, a world leader in building materials.
Listed on the Nigerian Stock Exchange with a presence in Africa’s two largest economies, Nigeria and South Africa, Lafarge Africa is actively participating in the
urbanization and economic growth of Africa.
The approval was given on Monday, 6 November at an extraordinary general meeting held at the Muson Centre in Lagos.
The two companies, were, wholly-owned subsidiaries of the Lafarge Africa, the continental building solutions provider.
The board of Lafarge Africa assured that there will be no significant impact on the employees of UniCem and Atlas and on their terms and conditions of employment. Both companies will transfer their assets, liabilities and undertakings including real and intellectual property rights to Lafarge Africa.
Atlas Cement, based in Port-Harcourt, has moved from supplying Ordinary Portland Cement to providing cement solutions to the oil and gas sector.
It serves as the hub for Lafarge Africa’s ready-mix operations in the South-South and South-East markets.
Production capacity at Calabar-based UniCem was doubled in 2016 to 5 million metric tons consolidating the cement maker’s leading position in the region.
CEO of Lafarge Africa said, Michel Pucherchos, in his statement said that “The merger is part of the asset consolidation we began in June 2014. It will solidify our market position in Nigeria particularly our presence in the South-South and South-East regions. We have seen our installed cement production capacity grow from 4.5 to over 10 million metric tons per year with a diversified product range.”
Daily Times Nigeria recalls that total industry installed Cement production capacity in Nigeria has grown rapidly from 4.3 in 2004 to 37 million metric tons in 2014, due to government policies which banned importation of bulk cement in favour of local production in 2012.
However, cement consumption in the largest cement economy in Africa still lags behind its peers. Investors in the sector remain very optimistic based on favourable demographics, a rising middle class, rapid urbanisation and a significant housing and infrastructural deficit which should all combine to support increased demand.
Lafarge Africa has a current installed cement capacity of 14.1Mtpa. This is in addition to strong market leading positions in Aggregates,Ready mix concrete and Fly Ash, through the combination of its operations in Nigeria – Ewekoro and Sagamu plants in Ogun State, Ashakacem in Gombe State, Mfamosing in Cross Rivers State, Atlas cement in Rivers State and Ready-Mix Nigeria with its varied operations in South Africa,
The company leverages on its innovative expertise to provide valued added products and services solutions in the building and construction industry in Sub-Saharan Africa.
Adesola Afolabi
