Global Cement Giant, Holcim Exits Nigeria to Focus on High-Growth Regions, Sells Stake to Chinese Firm for $1 Billion

By Emmanuel Kwada

In a significant move, Swiss cement and building materials manufacturer Holcim has announced its exit from Nigeria after 65 years of operation. The company has signed an agreement to sell its 83.8% stake in Lafarge Africa Plc to China’s Huaxin Cement for $1 billion.

Holcim’s decision to exit Nigeria is driven by its strategy to streamline operations and focus on high-growth regions and sustainability. The company aims to prioritize higher-margin products, strategic infrastructure investments, and green technologies. This includes its recent investment in low-carbon cement through a partnership with US-based Sublime Systems.

Holcim’s exit from Nigeria follows its 2021 disposal of its majority stake in Zambian operations, also to Huaxin Cement. The move also reflects Nigeria’s evolving cement market, now dominated by local players like Dangote Group and BUA Cement.

Some of the competitors; Dangote Cement X BUA Cement

Lafarge Africa, operational since 1959, has four plants across Nigeria and a production capacity of 10.5 million tons per annum. The company has been at the forefront of green growth and decarbonization in building materials.

Holcim’s exit from Nigeria is expected to have significant implications for the country’s cement industry. The transaction is expected to close in 2025, subject to customary and regulatory approvals.

Holcim has been present in Nigeria since 1959, operating through its subsidiary, Lafarge Africa Plc

Holcim has been present in Nigeria since 1959, operating through its subsidiary, Lafarge Africa Plc. The company has been a significant player in Nigeria’s cement industry, providing employment opportunities and contributing to the country’s economic growth.

Over the years, Lafarge Africa has invested heavily in Nigeria’s cement industry, expanding its production capacity and improving its product quality. The company has also been at the forefront of sustainability initiatives in Nigeria, promoting green growth and decarbonization in the building materials sector.

Holcim’s decision to exit Nigeria is driven by several factors

Holcim’s decision to exit Nigeria is driven by several factors, including a shift in global strategy, market competition, regulatory challenges, and a focus on sustainability. Nigeria, with its challenging business environment and increasing competition, no longer aligns with Holcim’s strategic priorities.

The implications of Holcim’s exit are expected to be significant, with potential job losses, as the company’s operations in Nigeria are expected to be wound down. Market consolidation, as other players in the industry may seek to acquire Holcim’s assets and expand their market share, and increased competition among the remaining players in the industry.

As the Nigerian cement industry continues to evolve, it remains to be seen how Holcim’s exit will impact the market and the country’s economic growth.

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