Businessday reports Lafarge Plc, owners of Lafarge Wapco Plc, hinted that they have plans for capacity expansion. The Paper quotes the Managing Director of the company Joseph Hudson as saying;
“Absolutely we will be increasing our production capacity and it will happen quite soon,” Hudson says in an interview, last week at Lafarge headquarters in Lagos. When you look at this market, with the demographic growth, we think potentially this is a 50 m ton market.”
Lafarge has current production capacity of 8.5 m mtpa or 17% market share and is the second largest cement manufacturer in Nigeria, behind industry giant Dangote Cement. Any plans to increase production capacity has implications for the company’s finances and books as it will have to determine how it plans to fund the expansion, how much market share it will gain from it and off course how quickly shareholders will start to benefit.