Who is Huaxin Cement, the Chinese firm taking on Dangote and BUA?

Chinese cement manufacturer Huaxin Cement has agreed to acquire Swiss group Holcim’s 83.81% stake in Lafarge Africa for $1bn in a deal that challenges the dominance of Nigerian billionaires Aliko Dangote and Abdul Samad Rabiu in the continent’s largest cement market.

The transaction, which includes plans to acquire the remaining Holcim shares by 2026, gives Huaxin control of four Nigerian cement plants – Sagamu, Ewekoro, Ashaka and Mfamosing – with a combined annual production capacity of 10m tonnes.

The acquisition marks a significant expansion for the Hubei-based group, founded in 1907, which only entered the African market in 2020.

Nigeria’s cement demand has grown to approximately 30m tonnes annually, driven by infrastructure development and urbanisation.

Huaxin’s entry positions it as the third-largest player behind market leader Dangote Cement, which controls 35m tonnes of capacity in Nigeria out of 52m tonnes across Africa, and BUA Cement, controlled by Abdul Samad Rabiu.

The Chinese group has pursued a brownfield acquisition strategy across Africa, purchasing existing assets rather than building new facilities.

Previous deals include ARM Cement’s Tanzanian operations in 2020, Lafarge’s Zambian and Malawian businesses in 2021 and InterCement’s South African and Mozambican assets for $265m.

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