Lafarge says expansion of Nigerian unit progressing

LAGOS, March 4 (Reuters) - The world's biggest cement maker, Lafarge (LAFP.PA), said on Wednesday the expansion of its unit to double Nigerian output to around 4 million tonnes a year was progressing.

Lafarge had signed a deal last year with Chinese supplier CBMI, which is part of China's Sinoma International Group (600970.SS), to expand its Nigerian unit Lafarge Cement WAPCO (WAPP.LG) and raise output from 2 million tonnes a year.

"The ongoing 2.2 million metric tonnes expansion project is progressing," the local unit said in a notice announcing its 2008 full-year results.

"Total estimated cost is 350 million euros; to be financed by syndicated bank loans and 125 million euros internally generated cash flow," WAPCO said in the notice.

The cost of the project was not disclosed when the contract was signed last June in Paris.

Lafarge had said then that the deal was part of its programme to build 45 million tonnes of new cement capacity between 2006 and next year, to meet growing construction needs in emerging markets.

Africa's top oil and gas producer has seen a strong construction boom in the last six years, which has driven demand for cement to around 14 million tonnes per year from 8 million tonnes previously.

Lafarge Cement WAPCO posted a 5 percent rise in its full-year to Dec. 31, 2008, and declared a dividend of 0.60 naira.

(Reporting by Tume Ahemba; Editing by Elaine Hardcastle)