CEMENTING THE NATION: WEST AFRICAN PORTLAND CEMENT
A. Alos; F. Bamiro
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Lagos Business School
Nigeria. Cement Large.
global competition, investment decision, technology, uncertainty
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.