Lafarge Africa Plc plans to cut debt over the next two years as it seeks to boost profit before resuming expansion, according to the company’s chairman, reports CemNet Newsroom on 25th May 2018.
Whitehopleman can see that that would be a good strategy for Lafarge Africa. Debt in US$ with interest rates rising in the USA is likely to be a challenge and risk faced by many cement companies in the developing world. This is certainly something that should be on the risk register. The sooner debt and leverage can be cut the better. Certainly debt financed expansion would increase that risk and not be the strategy to follow.