Nigeria’s cement industry has long been dominated by two powerful players, Dangote Cement, led by Africa’s richest man Aliko Dangote, and BUA Cement, owned by Abdul Samad Rabiu.
But now, a new heavyweight has entered the market: Huaxin Cement, a Chinese firm that has quietly become one of the most ambitious foreign investors in Africa’s cement sector.
A $1 Billion Move into Nigeria
Huaxin Cement recently acquired an 83.81% stake in Lafarge Africa from Swiss multinational Holcim in a deal worth around $1 billion.
The transaction, one of the largest in Nigeria’s cement history, instantly places Huaxin among the top three producers in the country. By 2026, the group also plans to buy up the remaining Holcim shares, securing full control.
This acquisition hands Huaxin four major cement plants located in Sagamu, Ewekoro, Ashaka and Mfamosing, with a combined output capacity of about 10 million tonnes annually.
That makes the Chinese firm a direct competitor to Dangote’s 35 million tonnes in Nigeria and BUA’s rapidly growing capacity.
Who exactly is Huaxin?
Founded in 1907 in Hubei Province, Huaxin Cement is one of China’s oldest cement producers. Over the last century, it has grown into a global giant, supported by its parent company, which operates over 150 million tonnes of capacity worldwide.
In recent years, as China’s domestic construction boom slowed and demand weakened, Huaxin turned its attention abroad. Africa, with its fast urbanisation and infrastructure drive, became the perfect destination.
How the expanded through acquisitions
Unlike some rivals who build plants from scratch, Huaxin has pursued a brownfield acquisition strategy, buying existing cement operations and upgrading them.
This approach is faster and less risky, allowing the company to scale quickly.
Since 2020, Huaxin has snapped up:
- ARM Cement’s Tanzanian operations,
- Lafarge’s subsidiaries in Zambia and Malawi,
- and InterCement’s businesses in South Africa and Mozambique for $265 million.
The Lafarge Africa takeover is its boldest move yet, pushing its total African capacity to nearly 30 million tonnes.
Why Nigeria matters
Nigeria consumes roughly 30 million tonnes of cement every year, fuelled by population growth, housing demand, and government-led infrastructure projects.
For Huaxin, stepping into Africa’s biggest market is both a lucrative opportunity and a strategic necessity.
But the road ahead may not be entirely smooth. The deal is already facing a legal challenge from a minority shareholder, Strategic Consultancy Ltd, which claims it was sidelined during negotiations.
While Holcim insists the transaction has been completed, the case is still before a Nigerian federal court.
The rising competition in the cement market
For consumers, Huaxin’s entry could change the dynamics of an industry often criticised for high prices. More competition could push companies to improve efficiency, expand supply, and possibly stabilise costs.
Dangote and BUA, however, remain formidable rivals. Dangote Cement reported revenues of $2.4 billion last year, while BUA has been aggressively expanding production capacity with new plants across the country.
What to expect
Led by its CEO Li Yeqing, Huaxin Cement has made it clear that its African push is not short-term.
Beyond Nigeria, the company has invested in modernising its other subsidiaries, including a recent $30 million investment in Zambia to upgrade production facilities.
For now, Huaxin Cement has successfully planted its flag in Nigeria. The question is whether it can shake up a market where two Nigerian billionaires have long held sway. However, the cement battle in Africa’s largest economy has just gotten more interesting.