Displaying items by tag: Dangote Cement

Nigeria: The price of cement in Nigeria has risen by 25% since November 2011. This coincides with the peak of the nation's dry season, traditionally a period of increased construction. This has been exacerbated by the removal of Nigeria's fuel subsidy on 1 January 2012.

In Lagos and neighbouring towns in Ogun State the construction industry has witnessed unprecedented growth in recent years. Hajia Rukiyat Ajibola, a retailer in Mowe, Ogun State, stated that there was a high probability of the price of cement increasing even further if nothing was done.

Nigeria imported 124,000t of cement in December 2011. This figure represented a drop of 31% from November 2011 when 179,000t was imported into the country. Previously prices skyrocketed in May 2011 prompting President Goodluck Jonathan to issue a presidential directive to manufacturers to slash prices. At the time market leader Dangote and other manufacturers and importers announced price reductions.

Nigeria: Cement imports in Nigeria may begin to wind down soon, as the management of Dangote cement has concluded arrangements to finally launch its new 6Mt/yr cement plant in Ibese, Ogun State. Dangote Group additionally revealed that production at Gboko plant would soon be boosted because the company has almost concluded its expansion process in the plant to hit 4Mt/yr. The Gboko plant's current output is 3.5Mt/yr.

Dangote said that with 4Mt/yr in Gboko, about 10Mt/yr in Obajana and 6Mt/yr in Ibese, Dangote's cement production capacity will hit 20Mt/yr by the end of 2011. Nigerian demand is reportedly around 17Mt/yr. "What the Dangote Group alone will be producing will be far more than the country's demand, giving room for the group to commence cement exports to other African countries," said Dangote Group in a statement.

The group stated that by having cement plant in 14 different African countries, Dangote Cement has emerged as Africa's largest and most widespread cement producer, present in Zambia, Tanzania, South Africa, Congo, Ethiopia, Cameroon, Sierra Leone, Ivory Coast, Liberia, Ghana and Senegal. Dangote's plan, according to the company, was to ensure that Africa remains self-sufficient in cement production and in making the products easily available and affordable to end users.

The group was also keen to stress the benefits of increased production to its shareholders, with the Special Advisor to Aliko Dangote, Joseph Makoju, saying, "Very soon, the new lines in Obajana and Ibese will commence full production. By then the local capacity and output will be far more than the local demand of cement and that will set the scene for exporting our products. This will lead to increased product (sales), more revenue for the company and better returns for the shareholders."

Nigeria: The Ministry of Trade and Investment (MTI) has set up an institute called the Cement Technology Institute (CTI) to boost the quality of cement production in Nigeria. The Trade and Investment Minister Dr Olusegun Aganga, explained that the Institute would assist Nigeria in optimising its cement production capacity and capability, through acquisition and development of the appropriate technologies.

The announcement was made as the minister inaugurated the Board of Trustee (BoT) and the Project Implementation Team (PIT) for the CTI in Abuja. The Board is chaired by the Group President of the Dangote Group, Alhaji Aliko Dangote, while the Chairman of the PTI will be Alhaji Lateef G Salami, who is the Director of the Industrial Development department in the MTI. Inaugurating the BoT, the Minister pointed out that the Institute would also be the fulcrum for the positioning of Nigeria as a net exporter of cement with the capacity of meeting the needs of the Economic Community of West African States.

The CTI will carry out research and development, technology adaptation and develop human capabilities. Aganga added that the objectives of the institute were: to train and enhance manpower in cement technology and related fields especially at the middle management level; to undertake research and development in the areas of suitable alternative technologies in cement manufacturing; promoting the use of local raw materials for cement manufacturing.

Others areas to be covered include: the development of specialised cements; improving and increasing the use of mineral admixtures; and the development of cleaner and more environmentally-friendly production processes, waste management systems and energy conservation methods. The CTI will work closely with other institutes and will run as a non-governmental organisation with the BoT members drawn from both government and major stakeholders in the cement industry.

Nigeria: A disagreement between two workers at the Dangote Benue Cement factory in Gboko, Benue State escalated into a full-scale blood-bath on 17 August 2011, leading to reports of 20 deaths and the destruction of 154 trucks and 60 cars belonging to the company. Gboko itself has become a 'ghost town' after residents fled the town.

The violence started following a simple disagreement at a snack stand between two co-workers, a truck driver, named locally as Suleiman and the operator of the snack stand reported to be a Miss Kwaghkure. Apparently an agreement for Suleiman to be granted credit turned sour when he became unable to pay his debt and slapped Kwaghkure. This prompted an escalation in violence between those supporting the two parties and soon spread into full-scale looting of the plant, halting production.

Violence spread to the nearby town, where banks came under attack and the carnage even spilled out onto the local highway where innocent commuters were robbed. It is not known whether Suleiman or Kwaghkure are among the dead.

The plant's general manager (finance), Mike Etu, ruled out a tribal or religious dispute, saying it was purely driven by the interests of those involved. He lamented that although Dangote had been operating with the interest of the host community at heart, it had been under constant threat from cement looters. He expressed severe regret over the events and gave condolences for the dead and those affected by the incident.Dangote had previously ramped-up its security arrangements at the plant following smaller disputes.