Huaxin has committed to introducing advanced industrial technologies and management models in Lafarge Africa.
Chinese cement manufacturer Huaxin Overseas Development has successfully completed its acquisition of an 83.81% stake in Lafarge Africa Plc for USD 773 million on August 29th, 2025.
The transaction establishes Huaxin as the largest shareholder of the Nigerian-listed company, marking a pivotal moment in China’s industrial expansion into West Africa.
Lafarge Africa Plc operates four large-scale cement plants across Nigeria’s core markets with an annual production capacity of 10.6 million tons.
The company maintains integrated business operations, including concrete production, aggregates, and environmental treatment services, with a current market valuation of approximately USD 1.4 billion.
Integration of Advanced Technology at the Forefront of Acquisition
Huaxin has committed to leveraging its extensive corporate integration experience to introduce advanced industrial technologies and management models to the newly acquired operations.
The company plans to quickly launch technical upgrading and transformation projects across all plants to substantially improve production efficiency and operational performance.
These technological improvements are expected to enhance product competitiveness while positioning Huaxin to actively fulfill its social responsibilities in contributing to Nigeria’s economic and social development. The integration strategy reflects Huaxin’s proven track record of successfully modernizing acquired cement operations across multiple African markets.
Nigeria’s Importance in Huaxin’s Expansion
Nigeria represents a crucial strategic pivot for Huaxin’s West African development, given its status as Africa’s most populous country, largest economy, and major oil exporter. The nation’s rich natural resources and tremendous economic development potential make it an ideal location for long-term industrial investment and growth.
This acquisition significantly expands Huaxin’s business coverage and brand influence across the African continent, where the company has already established operations in seven countries. Nigeria becomes the seventh African nation in Huaxin’s portfolio since beginning its continental expansion in 2020 with the acquisition of Tanzania’s Maweni Limestone Ltd.
Market Position
Following this acquisition, Huaxin’s overseas operations will span 14 countries with annual cement production capacity exceeding 40 million tons, establishing it as China’s cement industry leader in overseas production capacity. The company will become sub-Saharan Africa’s second-largest cement producer, positioning it strategically against established local competitor Dangote Cement, which maintains 52 million tons of annual capacity across 10 countries.
Prior to the Nigerian acquisition, Huaxin operated 10 cement plants across sub-Saharan Africa with approximately 18 million tonnes annual production capacity. The addition of Lafarge Africa’s 10.6 million tons capacity represents a significant expansion of the company’s continental footprint and market influence.
Economic Rationale
Huaxin Chairman Xu Yongmo emphasized that the overseas expansion strategy aims to “effectively counterbalance the decline in the domestic market” amid thin profit margins in China’s construction sector. Nigeria’s low per capita cement consumption of only 140kg presents substantial growth opportunities compared to mature markets.
The favorable industry structure and positive construction outlook in Nigeria offer attractive long-term growth perspectives for cement operations. Industry analysts recognize this positioning as strategic preparation for Africa’s multi-decade infrastructure development phase, where cement demand is expected to surge significantly.
Outlook
Huaxin’s Nigerian acquisition represents Huaxin’s second major transaction involving Lafarge Africa assets, following the 2021 purchases of 75% of Lafarge Zambia operations and 100% of Lafarge Cement Malawi. The pattern demonstrates Huaxin’s systematic approach to acquiring established, well-positioned cement operations across strategic African markets.
Geoeconomic analysts predict that Chinese acquisitions of African companies will accelerate, with Huaxin maintaining a leadership position in this trend. The USD 1 billion investment reflects confidence in Africa’s infrastructure development potential and represents strategic positioning for long-term market dominance in the region’s construction materials sector.
