In a deft move to consolidate on its leadership in the cement sector,
Dangote Cement Plc has announced the commencement of the construction of
new cement plants in two communities in the country.
The new plants are expected to add 9 million metric tonnes per annum to
the company’s current local cement output of 29.25 million metric tonnes,
bringing it to a total of 38.25 million metric tonnes per annum.
The company stated that the communities in which it is setting up the new
plants are Okpella in the northern part of Edo State, South-south of
Nigeria with a three million per annum plant and another six million per
annum capacity plants in Itori in Ogun State, South-west of the country.
The Group Managing Director and Chief Executive Officer (CEO), Dangote
Cement Plc, Mr. Devakumar Edwin, who made the announcement in Lagos,
explained that the Okpella plant will be made up of one line and will
produce a total of 3 million metric tonnes per annum, and the Itori plant
which will deliver approximately 6 million tonnes per annum from two
procution lines. Both plants are expected to come on stream within the
next three years.
Devakumar said the move by the company was to help expand the spread of
the company’s manufacturing outfits, thereby reducing the transportation
cost component of their operations.
He added that the new investments will further lower cost of production;
bring about future reductuon of the price of cement and also to generate
employment opportunities for the youths of host communities.
Also speaking at the event, the Group Managing Director, Cement, Dangote
Industries Limited, Mr. Onne Vander Weijde, said the demand for cement was
still high considering the level of population growth in Nigeria, saying
that Nigeria’s per capita consumption of the building material which is
just above 100kg per capita is relatively low, indicating a massive growth
potential.
“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 capita consumption,”
he said.
He said with the capacity of the plants in Nigeria, the company can
supply the entire western and central Africa region, maintaining that
currently, Dangote cement is exporting cement to Niger, Ghana, Togo with
plans to move up to the Ivory Coast.
“Nigeria had always been an import-dependent country in terms of cement in
the past and if we do not add up capacities, we will not be able to match
up the consumption rate in the country. We want to ensure that we are
always one step ahead to meet the local demand for the commodity,” he
said.
According to him, the investments would create in excess of 5000 jobs at
the beginning stage, noting that logistics and construction of the plants
would also provide more employment opportunities indirectly to surpass
that amount.
In his remarks, the Special Adviser to the President of Dangote Group, Mr.
Joseph Makanju, said expectations were very high about cement price
reduction when the nation began building local cement production
capacity.
He noted that those price reduction expectations were now being met with
cement now selling at about N1,300 per 50kg bag, among the most affordable
in the world.
“Before now, cement was selling for over N2000. There is a lesson here to
learn for the country and the media has a big role to play in this because
when you go through transformation by moving a country from being
dependent on import, there is need to encourage local investment to make
those products being imported into the country,” he said.
“I am using this medium to appeal to the media by saying they have a huge
role to play. You can refer to the cement story to educate the public. The
price of cement has now come down to about N1300 in an environment where
all the input costs are going up. The achievement is actually bigger than
the figures.”
Expressing the excitement of the community on the announcement of the
commencement of the new plant in Okpella, a community leader from the
community, Chief Calib Musa, said the Community had long awaited the move
by Dangote saying the Okpella people are happy and would give all the
necessary cooperation to Dangote Cement.
Said he, “The investment is a very welcomed development. Dangote has the
full support of our people because we know that the initiative will be
beneficial to us and the company as well”
He stressed that communities around the world wish and pray for
opportunities like this to come to their way and Okpella leaders, people
and youths are happy with Dangote for his decision to contribute to the
development of our land.
Chief Musa explained that the investment move was long due adding that all
the noise about the community not supporting Dangote Cement was a ruse.
“We are happy with Dangote we want him to move very fast and we thank him
immensely, ” he said.