Meet 117-years-old Chinese cement giant coming to Nigeria to rival Dangote, BUA
Huaxin Cement, a Chinese company founded in 1907 and known as ‘the cradle of China’s cement industry’, is in the process of acquiring the majority stake in Lafarge Africa, one of the major producers of the building material in Nigeria.
Lafarge Africa, a rival to Dangote Cement and BUA Cement, said in a statement that Huaxin Cement entities have agreed to acquire the 83.81% shareholding owned by Holcim Group, which merged with Lafarge Group in 2014.
“This transaction is subject to regulatory approvals and is expected to close in 2025,” it said. “Following completion of this transaction, Lafarge Africa Plc will remain listed on NGX and, subject to regulatory approvals, Huaxin Cement intends to launch a mandatory takeover offer in compliance with applicable laws and regulations.”
Huaxin Cement has established itself as a leading company in China as well as the global cement industry. For over two decades, it has consistently maintained an average annual compound growth rate of 25%, securing its place as one of the top 10 manufacturing companies in China, according to the World Cement Association.
It operates across over 300 branches and subsidiaries within China and overseas, working across multiple sectors, such as cement, concrete and environmental protection. To maintain competitiveness the global firm consistently innovates its processes, including with its award-winning low-carbon manufacturing technology, which has the potential to cut carbon emissions by 664,000 tons per year.
Based in Wuhan, Huaxin Cement was listed on the Shanghai Stock Exchange in January 1994 and employs 19,278 people.
The company boasts over 65 kiln lines and 15 grinding stations, offering a combined annual cement capacity of 118 million tonnes across China and nine other countries, according to the World Benchmarking Alliance (WBA).
“In addition to cement, Huaxin operates 36 aggregates plants and more than 100 mixing stations, and offers a diverse range of high-quality construction materials, including aggregates and ready-mixed concrete,” it said. “Huaxin Cement is actively aligning its practices with China’s national climate goals, targeting a reduction in its carbon dioxide emissions per tonne of cement to 475 kilograms by 2030 from 652 kg in 2020.”
The company had 15 low-carbon related patents among its 166 patent applications during 2018-2022, said WBA, adding it has also invested 10.5 billion yuan in research and development for emissions reduction and system upgrades “but lacks clarity on how this investment is distributed between mature and emerging low-carbon technologies”.
“Although the company has outlined strategies for sustainable development and transitioning towards alternative fuels, its plans are only set to commence post-2035. Additionally, the company lacks clear strategies for engaging suppliers and customers in emissions reduction and for engaging in climate policy discussions,” it said.
China’s top 10 buildings in the 1950s, Beijing’s Asian Games Village, Gezhouba, the Beijing-Zhuhai Expressway, dozens of highways and railway bridges in the middle and lower reaches of the Yangtze River, and the Three Gorges Project, all used Huaxin cement, according to trading platform Moomoo.
