AshakaCem Plc held its 40th AGM last week and announced a 7.1% y/y increase to the gross dividend. The proposed dividend was in consideration of the company's plan to invest in a significant expansion of its cement production capacity to about 4 million t from the current ~1 million t, partly with internally generated funds. The ground-breaking ceremony of the Ashakacem expansion project took place last year. The expansion comprises debottlenecking of the existing line, bringing 0.5 million t of additional capacity, as well as the addition of a new 2.5 million tpy line. A 64 MW captive coal-fired power plant is being built as part of the project.
Commenting on AshakaCem's financial performance for the year 2014, the Managing Director/Chief Executive Officer, Leonard Palka attributed the 84.5% increase in profit before taxation when compared to the previous year's to cost efficiency and the increased use of local coal in place of the expensive LPFO in the year under review.
The shareholders ratified the appointment of the new Chairman of the Board as well as Messrs. Anders Kristiansson, Rabiu Abdullahi Umar and Mrs. Edith Onwuchekwa as non-executive Directors.
AshakaCem is a full part of the consolidated Lafarge Africa Plc.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/africa-middle-east/12052015/ashakacem-increases-gross-dividend-by-more-than-7-percent-823/