LafargeHolcim Bangladesh steps into concrete block manufacturing

Cement manufacturer LafargeHolcim Bangladesh has entered the concrete block market in a move to diversify businesses to reinforce its position in the country. 

The multinational company made an official announcement in Dhaka on Saturday for its new business under the brand name "Holcim Block". 

"Concrete blocks are environment-friendly and durable than the conventional bricks. The demand for these blocks is increasing worldwide because of low carbon emission during the production process," a release quoted Asif Bhuiyan, chief corporate affairs officer of LafargeHolcim Bangladesh, as saying. 

The initiative is aimed at a better sustainable tomorrow where Holcim Block will play a significant role, he said. 

Addressing the programme as the chief guest, Ashraful Islam, director general of the Housing and Building Research Institute, said, "The Government has a target to use concrete blocks in its all projects by 2025 and adopted a plan to close down the traditional brick kilns."

In his keynote paper, Engineer Mohammad Abu Sadek, executive director of the institute, highlighted the advantage of concrete blocks and disadvantage of conventional red bricks. 

He said concrete block reduces overall cost of construction.

The company says Bangladesh is ranked fourth in Asia in terms of brick market size.  

Currently, Bangladesh is under a rapid urbanisation process and economic growth. In future, the demand for eco-friendly concrete blocks is expected to rise here. 

Nearly 99% of the bricks in Bangladesh are being produced by traditional brick kilns involving highly carbon emitting manufacturing process. Besides, it also destroys top soil and leads to deforestation, according to LafargeHolcim.

The cement maker posted Tk594 crore in net profit in 2023, marking a 34% year-on-year rise propelled by cost management and diversified products.  

At the same time, its revenue grew over 20% to Tk2,838 crore last year, the company said in its financial statement on 29 February.

Meanwhile, its board declared on Thursday a 50% cash dividend for shareholders for 2023, the highest payout in its history. Its earnings per share stood at Tk5.12.