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 country.

The brand new plants are expected to add nine million metric tonnes per annum to the firm's current local cement outcome from 29.25 million metric tonnes per annum (mmtpa) to 38.25 mmtpa

The company stated the communities in which the brand new plants are being set up by it 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 announcement in Lagos, explained that the Okpella plant will probably be constructed of one line and can create a total of three million metric tonnes per annum, and the Itori Nigerian plant that will deliver approximately six million tonnes per annum from two production lines. Both plants are likely to come within another three years.

Devakumar said the move by the firm was to help enlarge the spread of its own production outfits, therefore reducing the transport cost component of operations.

He added the Nigerians brand new investments will further lower cost of production; to generate employment opportunities as well as bring about future reductuon of the amount of cement.

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's per capita consumption of the building material that is only above 100 kilogram per capita is relatively low, suggesting an enormous increase potential.

"There has always been an excess in demand because cement had not been easily available, but ours is available as well as 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 merchandise has gone down in Nigeria, and in some instances below the prevailing typical international price.

"This itself is an enormous driver for increasing the per capita consumption," he said.

He said with the capacity of the plants in Nigeria, the business can provide the complete western and central Africa area, 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 regards to cement previously and when we usually do not add up capacities, we will not have the ability to match up the consumption rate in the state.