Dangote starts construction of new cement plants in Edo, Ogun
Dangote Cement Plc has announced the commencement of the building of new cement plants in two communities in the state.
The newest plants are likely to add nine million metric tonnes per annum to the firm's current local cement result from 29.25 million metric tonnes per annum (mmtpa) to 38.25 mmtpa
The business said that the communities in which it is setting up the brand new plants are Okpella in the northern area of Edo State, having a three million per annum plant and another six million in Itori per annum capacity plants, in Ogun State.
The Group Managing Director and Chief Executive Officer (CEO), Dangote Cement Plc, Devakumar Edwin, who made the statement in Lagos, clarified that the Okpella plant will likely be made up of one line and will produce a total of three million metric tonnes per annum, along with the Itori plant which will deliver around six million tonnes per annum from two production lines. Both plants are expected to come within the following 36 months.
Devakumar said the move by the business was to help enlarge the spread of its own manufacturing outfits, thus reducing the transport cost component of operations.
He added the brand new investments will lower cost of production; bring about future reductuon of the price of cement as well as to generate employment opportunities.
Also speaking at the event, the Group Managing Director, Cement, Dangote Industries Limited, Onne Vander Weijde said the demand for cement was still high considering the amount of population growth in Nigeria, saying that Nigeria news's per capita consumption of the building material that will be just above 100 kilogram per capita is relatively low, signaling a huge increase potential.
«There's been an excess in demand because cement wasn't easily available, but ours is available as well as the costs are affordable. Consumer prices have fallen by 35 per cent in naira terms, but if you choose it in dollar terms and associate it with today's parallel market rates, you will realise the price of the product has gone down in Nigeria, and in some instances below the prevailing average global cost.
»This itself is an enormous driver for increasing the per capita consumption," he said.
He said in Nigeria using the capacity of the plants, the company can furnish the whole western and central Africa region, maintaining that currently, Dangote cement is exporting cement to Niger, Ghana, Togo with strategies to move up to the Ivory Coast.
«Nigeria had always been an import-dependent nation with regard to cement in the past and when we don't add up capacities, we will never manage to match up the consumption rate in the united states.
The newest plants are likely to add nine million metric tonnes per annum to the firm's current local cement result from 29.25 million metric tonnes per annum (mmtpa) to 38.25 mmtpa
The business said that the communities in which it is setting up the brand new plants are Okpella in the northern area of Edo State, having a three million per annum plant and another six million in Itori per annum capacity plants, in Ogun State.
The Group Managing Director and Chief Executive Officer (CEO), Dangote Cement Plc, Devakumar Edwin, who made the statement in Lagos, clarified that the Okpella plant will likely be made up of one line and will produce a total of three million metric tonnes per annum, along with the Itori plant which will deliver around six million tonnes per annum from two production lines. Both plants are expected to come within the following 36 months.
Devakumar said the move by the business was to help enlarge the spread of its own manufacturing outfits, thus reducing the transport cost component of operations.
He added the brand new investments will lower cost of production; bring about future reductuon of the price of cement as well as to generate employment opportunities.
Also speaking at the event, the Group Managing Director, Cement, Dangote Industries Limited, Onne Vander Weijde said the demand for cement was still high considering the amount of population growth in Nigeria, saying that Nigeria news's per capita consumption of the building material that will be just above 100 kilogram per capita is relatively low, signaling a huge increase potential.
«There's been an excess in demand because cement wasn't easily available, but ours is available as well as the costs are affordable. Consumer prices have fallen by 35 per cent in naira terms, but if you choose it in dollar terms and associate it with today's parallel market rates, you will realise the price of the product has gone down in Nigeria, and in some instances below the prevailing average global cost.
»This itself is an enormous driver for increasing the per capita consumption," he said.
He said in Nigeria using the capacity of the plants, the company can furnish the whole western and central Africa region, maintaining that currently, Dangote cement is exporting cement to Niger, Ghana, Togo with strategies to move up to the Ivory Coast.
«Nigeria had always been an import-dependent nation with regard to cement in the past and when we don't add up capacities, we will never manage to match up the consumption rate in the united states.