CEMENTING THE NATION: WEST AFRICAN PORTLAND CEMENT

Author :

A. Alos; F. Bamiro

Pages :

23

Product Type :

Case

Reference # :

BP-C-99-1-01

Teaching Note :

Institute:

Lagos Business School

Setting:

Nigeria. Cement Large.

Year:

1999

Keywords:

global competition, investment decision, technology, uncertainty

Summary/Abstract:

West African Portland Cement (WAPCO) is at the point of making a decision regarding the replacement of the old kiln at its Ewekoro plant with a new dry process kiln. The 40-year old equipment made the running of the plant uneconomical. The unstable economic environment prevailing in Nigeria led to the closure of six out of the eight cement manufacturers. WAPCO maintained a 60% share of total production representing about 20% of the total demand. The demand gap induced importation of cement at a low price. This case is suitable for discussion in executive programmes. Issues to be discussed are (1) impact of economic policies, (2) global competition, (3) investment decisions, (4) technology, and (5) managing uncertainty.