AshakaCem begins expansion drive of Gombe plant to 4m metric tons

Ashaka Cement plc, a subsidiary of Lafarge Africa ‎plc, has proposed a huge investment in its cement plant located in Gombe State, North East Nigeria, by increasing the annual capacity of the cement plant from approximately 1 million metric tons to 4 million metric tons, which will be partly financed by internally-generated funds.

The huge expansion drive of Gombe cement plant‎ is expected to commence on the heels of the income generated in the 2014 financial year.

Speaking during the company 40^th annual general‎ meeting held in Abuja on Tuesday, Suleiman Yahyah, chairman, AshakaCem board of directors, said AshakaCem posted a profit of N4.566 billion last financial year, paid N4.5k dividend on every ordinary share held, which represents 7.1 percent increase when compared with that of previous year.

Yahyah said despite challenges experienced ‎during the 2014 financial years, especially as regards insurgency in the North, the firm was able to weather the storm, adding that the cement plant had the capacity to generate more revenue when the expansion was completed.

He however said “the Federal Government has designated the plant, a National Strategic Asset with about 400 security personnel, providing security to prevent another attack,” pledging that the firm will collaborate with the incoming administration to restore peace and meaningful development in the area as well as to bring down the cost of cement in the interest of the masses.

Yahyah said: “AshakaCem will rally support with the Buhari’s administration for the reconstruction of the North East economy and Nigeria in general. We will continue to provide leadership and innovative ideas, especially in the area of infrastructure and agriculture.”‎

Also, Leonard Palka, managing director/CEO of the company, attributed the 84.5 percent increase in profit before tax over that of last year, to cost efficiency, good performance, employee motivation and staff engagement.

He said the firm had been participating in the economic growth and development of Nigeria, particularly in the North East where it is located.

BusinessDay, however, reports that the shareholders at the occasion ratified the appointment of Suleiman Yahyah as the new chairman of the board, as well as Anders Kristiansson, Rabiu Umar and Edith Oneucheka as non-executive directors.

 

RAZAQ AYINLA