The Mine Workers Union of Zambia is engaging Lafarge Zambia to ensure that workers are paid their full terminal benefits as the new Chinese owners Huanxin Cement takes over operations.
Union general secretary George Mumba said workers at Lafarge are apprehensive following the takeover of Lafarge Zambia by a Chinese cement firm after acquiring 75% of Lafarge group interest in the Zambian cement manufacturer.
Speaking in an interview with the Zambian Business Times-ZBT, Mumba said workers want to be paid their terminal benefits as they wait to hear whether they will continue working at the same company under new ownership.
“The only fear we have is that Lafarge has a change in ownership, so the workers are very apprehensive and they would want to see that they are paid their benefits”.
“So far, Lafarge has not mentioned of any intention to slash its workforce but we are engaging them to make sure that we know the way forward,” he said.
There is fear that the new owners conditions of service will be materially different. Some long service employees fear that they may lose out on their benefits as the new owners may introduce new measures and frustrate them into resigning and losing their benefits.
Chinese cement giant Huanxin Cement recently acquired majority stake and took over the troubled French local unit, Lafarge Zambia. Huanxin Cement acquired 75% of all of Lafarge group interest in the Zambian cement manufacturer.
Individual and institutional shareholders publicly hold the other remaining 25% stake in Lafarge. Lafarge Zambia company secretary Chibuye Mbesuma-Ngulube confirmed the takeover of Lafarge Zambia by Huanxin Limited of China.
Ngulube stated that an agreement for the sale of 75% of the company was executed by majority shareholders in Lafarge Zambia i.e. Finaciere Lafarge and Pan African Cement to Huanxin for an enterprise value of USD150 million.
The Lafarge Zambia company secretary however indicated that this is a related party transaction as Lafarge Holchim group holds about 42% shares in Huanxin group. Lafarge Zambia has two cement plants in Zambia, one in Lusaka Chilanga area and the other in Ndola’s Masaiti area.
The combined production of the two plants is 1.5 million tons per annum with the aggregate plant producing about 600k tons.
