HBM Nigeria to add 4.5m tons of cement capacity by January 2027

HBM Nigeria Plc, formerly Lafarge Africa Plc, plans to increase its cement production capacity by 4.5 million metric tonnes by January 2027 as the country’s building materials market expands on the back of infrastructure spending and housing demand.

The producer, which recently rebranded following the acquisition of a controlling stake by China’s Huaxin Building Materials Co. (formerly referred to as Huaxin Cement), said the additional capacity will come from expansions at its Sagamu plant in Ogun State and Ashaka facility in Gombe State.

“We are making significant progress,” Lolu Alade-Akinyemi, the company’s chief executive officer, said during a media briefing in Lagos on Monday. “By January 2027, we will commission the plant. We are adding an additional 4.5 million tonnes of cement.”

He said each plant would employ more than 400 workers directly after inauguration, while indirectly supporting over 2,000 jobs through small and medium-scale enterprises (SMEs), suppliers and local contractors.

“Beyond the direct employment, you’re creating jobs. You’re developing suppliers. You’re developing local contractors,” he said. said during a media briefing in Lagos on Monday. “By January 2027, we will commission the plant. We are adding an additional 4.5 million tonnes of cement.”

The expansion is expected to improve product availability nationwide while creating jobs, strengthening local supply chains and supporting contractors and small businesses, Alade-Akinyemi said.

According to the CEO, construction activities at the two plants have already created jobs for skilled and unskilled workers, with priority given to youths from host communities.

He said each plant would employ more than 400 workers directly after inauguration, while indirectly supporting over 2,000 jobs through small and medium-scale enterprises (SMEs), suppliers and local contractors.

“Beyond the direct employment, you’re creating jobs. You’re developing suppliers. You’re developing local contractors,” he said.

The investment comes as Nigeria pushes ahead with large-scale road and infrastructure projects that are expected to sustain demand for cement despite high borrowing costs and slower private construction activity.

Alade-Akinyemi said HBM aims to complete the capacity expansion within about a year, much faster than the typical three-year timeline for new cement plants, attributing the accelerated delivery to the engineering and manufacturing capabilities of its new Chinese parent.

“They manufacture the equipment themselves and started shipping it almost immediately,” he said, describing the integration into the Huaxin group as a key advantage.

HBM Nigeria unveiled its new corporate identity following Huaxin’s acquisition of Lafarge Africa’s controlling stake, marking the end of one of Nigeria’s oldest cement brands.

The company said the rebranding reflects a broader strategy focused on operational efficiency, sustainability and long-term growth while retaining its existing operations in cement, aggregates, ready-mix concrete and mortar.

Alade-Akinyemi said the company intends to leverage Huaxin’s engineering expertise and research capabilities to improve manufacturing efficiency and narrow technical skills gaps in Nigeria.

The company also plans to expand its portfolio of lower-carbon building materials, including cement products designed to reduce carbon emissions by about 30%, as demand grows for more sustainable construction materials.

“We are the same trusted organisation, now operating under a new identity that reflects our aspiration for the future,” Alade-Akinyemi said.

The expansion is expected to bolster HBM Nigeria’s position in Africa’s largest cement market, where manufacturers are investing to meet rising demand from government-backed infrastructure projects, including concrete road construction across several states.