Dangote to build two new Nigerian plants

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Nigeria: Dangote Cement has announced that it will build new cement plants in Nigeria, in Okpella in the northern part of Edo State and Itori in Ogun State. Dangote said that the new plants are expected to add 9Mt/yr to the company’s current output of 29.25Mt/yr, raising it to a total 38.25Mt/yr.

The Group’s Managing Director Edwin Devakumar, made the announcement in Lagos. He explained that the Okpella plant will have one 3Mt/yr cement line and that the Itori plant will deliver 6Mt/yr from two production lines. Both plants are expected to come on stream within the next three years.

Devakumar said the company’s expansion drive was targeted at expanding its nationwide presence and reducing the transportation cost component of its operations. He added that the new investments will also lower the cost of production, bring about a future reduction in the price of cement and generate employment opportunities in the host communities.

Group Managing Director for Cement Onne van der Weijde said the demand for cement was still high considering the population growth in Nigeria. He observed that Nigeria’s consumption of cement, at 100kg/capita was relatively low by international standards, indicating growth potential.

Van der Weijde added that Dangote Cement can supply the entire western and central Africa region. Dangote Cement currently exports cement to Niger, Ghana and Togo, with plans to also move into the Ivory Coast.

Last modified on 10 February 2016

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