By Franklin Alli

Ashaka Cement Plc, a subsidiary of Lafarge Cement WAPCO Nigeria plc says it on the move to add an additional 300,000 metric tonnes to its current 1000,000 production capacity.

This would bring its total annual production capacity to 1.3 million metric tonnes. The company’s new Chairman, Alhaji Umaru Kwairanga, who disclosed this, said they are being spurred by the expansion fever in the cement industry as most of the local producers are currently investing in capacity expansion in order to bridge the supply gap in the industry.

“We have maintained our market share which is a little above 5 percent but with the growth of the market we feel we cannot continue to stay where we are; so we have already started working on short-term expansion so that we can move our company from 1 million metric tonnes production capacity by an additional 3, 000, 000 plus metric tonnes   this year.  We have commenced feasibility study on this and the outcome will help us determine the next line of action,” he disclosed.

Fielding questions on how N97 per liter of fuel is telling on the company’s operation and profitability, he noted that as a result of the high cost of diesel and low pour fuel oil(LPFO) the company invested N10 billion in coal technology.

“We are the only cement company in Nigeria that is using coal. This was a substitute to the use of LPFO for kiln firing. The project consists of coalmine operation at Maiganga and coal grinding workshop at Ashaka. The company has commenced the burning of coal to fire its kilns. I think it is an advantage for us as compared with other cement manufacturing companies.

“The power project was embarked upon to improve utilisation factor for its cement mills that would result in increased output in order to satisfy its sales requirement as per budget. The project was completed in the beginning of 2008 and has helped to boost production at its cement mills.”

Also speaking, Lafarge  Country Manager, Jean-Christopher Barbant, said the acquisition of 58.6 percent majority stake in Ashaka Cement  was a move towards attaining its targets of  8 million metric tonnes per year production capacity.