Africa richest man, Aliko Dangote is taking another giant step to reposition cement industry in Nigeria through the construction of new cement plants.
Dangote Cement Plc announced that the new plants are sited in Okpella in the northern part of Edo State, with a three million per annum plant and another six million per annum capacity plants in Itori, in Ogun State.
The new plants are expected to add nine million metric tonnes per annum to the company’s current local cement output from 29.25 million metric tonnes per annum (mmtpa) to 38.25 mmtpa.
Devakumar Edwin, the group managing director and chief executive officer (CEO), Dangote Cement Plc explained that the Okpella plant will be made up of one line while the Itori plant will have two production lines.
Devakumar said the plants which will come on stream within the next three years will help expand the spread of its manufacturing outfits, thereby reducing the transportation cost component of operations.
Other benefits anticipated include lower cost of production; future reduction of the price of cement and also employment opportunities for the youths of host communities.
Onne Vander Weijde, the group managing director, Dangote Industries Limited, said the demand for cement was still high considering the level of population growth in Nigeria.
”There has always been a surplus in demand because cement was not readily available, but ours is available and the prices are affordable. Consumer prices have fallen by 35 per cent in naira terms, but if you take it in dollar terms and relate it with today’s parallel market rates, you will realise the price of the product has gone down in Nigeria, and in some cases below the prevailing average global price.
”This itself is a huge driver for increasing the per capital consumption,” he said.
According to him, with the capacity of the plants in Nigeria, the company can supply the entire western and central Africa region.
He disclosed that Dangote cement is exporting cement to Niger, Ghana, Togo with plans to move up to the Ivory Coast.
Meanwhile, Dangote Cement has slashed the price of its cement varieties as a result of this giant move.
The cement company slashed prices of cement from N1800 to N1300 to ensure the product is affordable to all segment of users.
Apart from the slash in price, the cement firm went further to train block moulders on the right mix to get quality blocks.
In reaction, Johnson Olaniyi, sales director, Dangote Cement stated that the company sees the incessant building collapse in the country as an indictment on all sector operators. Hence, resolved to continue collaboration with all stakeholders to tackle the menace.
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