LafargeWAPCO plans $550m expansion programme
TO enhance its productive capacity, LafargeWAPCO Plc, a manufacturing company quoted on the Nigerian Stock Exchange, has concluded plans to expand its operations with 360 million Euro, about $550 million.
The fresh fund, according to the company's Managing Director, Mr. George Lourandos would come in two tranches of dollar and naira and would be symdinated by some Nigerian banks especially those foreign affiliations.
Specifically, he said the company is considering the installation of new power plants for both the existing and new Ewekoro lines, while plans are also underway to make the Ewekoro plant a dual fired one.
His words: "As a leading manufacturing of cement in Nigeria, LafargeWAPCO continues to ensure that relevant investment are made or up-to-date maintenance and refurbishment of our equipment's in Ewekoro and Sagamu for optimisation of output from the two plants.
"We are considering the installation of new power plants for both the existing and new Ewekoro line and fired one. These initiatives are aimed at reducing the negative impact of epileptic power and gas supply".
He continued: " LafargeWAPCO will witness an increase in its capacity with its on-going expansion project. Recent decision has been taken to deploy by end of 2010, a new 2.2 million metric tonnes line, which will increase the aggregate LafargeWAPCO capacity to 4.2 million metric tonnes. LafargeWAPCO currently has a capacity of 2.0 million metre tonnes through its two plants of Ewkoro and Sagamu.
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To this end, we have signed a contract with CBM Construction Company of China for the supply of equipment and subsequent erection in Ewkoro. We have equally signed an agreement with Wartizila of Finland for a new power plant".
At the briefing held in the company yesterday, the General Manager, Finance, Mr. Emmanuel Olorintoki presented the company's six months results.
By the results, after tax profit fall from N5.8 billion in the half year ended June 30, 2007 to N4.75 billion in 2008, on a turnover, which rose from N19.9 billion to N22.2 billion.
Lourandos explained that although the operations of the company in the past six months were affected by the prevailing power and gas supply situation in the country, LafargeWAPCO is gearing for greater heights in the months ahead.
According to him, cement sales volume achieved for the half year was 847,200 metric tonnes, down on corresponding period of 2007 by about nine per cent as a result of power supply disruptions to the plants in Ewkoro and Sagamu.
"Operating profit was adversely impacted on increased cost of sales due to the use of imported clinker, the cost of which is higher than the cost of own-manufacture," Lourandos said.
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