LAGOS Feb 8 Flour Mills of Nigeria
plans to borrow between $400 million to $500 million to
construct a new cement plant which will double its existing 2.5
million metric tonnes capacity, its chief finance officer said
Jacques Vauthier told Reuters the conglomerate had appointed
financial advisers and banks to raise a term loan from the local
market for the construction of the plant. He said the details of
the loan were still being finalised.
The new cement plant will be completed by the first quarter
of 2016, Vauthier said.
Nigeria's biggest cement firm Dangote Cement
and Flour Mill's rival recently re-opened its Gboko cement plant
after it was shut two month ago due to over-supply in the
market, bringing back a fifth of its 20 million tones capacity.
Vauthier acknowledged last year's glut caused by cheap
imports from Asia but said sales were picking up again and he
expected its cement subsidiary Unicem to end the year with
growth in double-digits over the previous year.
Nigeria has a huge infrastructure need, which will fuel a
construction boom and cement companies are gearing up by scaling
(Reporting by Chijioke Ohuocha; Editing by Joe Brock)