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Displaying items by tag: Nigeria
Haver & Boecker opens subsidiary in Nigeria
22 January 2014Nigeria: Haver & Boecker has opened a subsidiary company in Lagos, Nigeria. The new company intends to better fulfil the needs of Haver & Boecker's key client in the region, Dangote Group. A managing director is currently being sought for the new company.
MINTed cement industries
08 January 2014There was a great quote on BBC News from Nigerian cement mogul Aliko Dangote to start 2014 with: "Can you imagine, can you believe, that [Nigeria] has been growing at 7%/yr with no power, with zero power? It's a joke."
In the article Dangote is describing economic growth in Nigeria and the BBC points out that 170 million people in Nigeria use the same amount of power as 1.5 million people do in the UK. The author then goes on to predict that Nigeria could grow at a rate of 10 – 12%, by just solving power infrastructure in the country.
For the start of 2014 the British state broadcaster has been running a radio series on the so-called MINT economies. The term refers to the growing economies of Mexico, Indonesia, Nigeria and Turkey and is being used as a new buzzword in the same fashion as BRIC (Brazil, Russia, India and China) to describe broadly similar growing economies outside the traditional western bloc dominated by the G7.
Comparing the cement industries in the MINT countries raises some discrepancies between the desires of Western economists and the local cement industries. Mexico has a population of 118m, a Gross Domestic Product (GDP) of US$1.85tr and a cement production capacity of 50Mt/yr. Indonesia has a population of 238m, a GDP of US$1.29tr and a cement production capacity of 47Mt/yr. Nigeria has a population of 175m, a GDP of US$479bn and a cement production capacity of 28Mt/yr. Turkey has a population of 74m, a GDP of US$1.17tr and a cement production capacity of 82Mt/yr.
Mexico and Turkey have the lower populations in the MINT group, the highest (and most similar) Gross Domestic Product (GDP) per capita at US$15,000 and are the more developed cement industries in the group with the higher cement production capacities per capita. All of the MINT countries have infrastructural issues that will require large amounts of cement in the coming years.
Highlighting Dangote's concerns we cover a cement industry news story this week from Nepal, where Dangote is considering potential locations for a cement plant. Part of the publicly reported meeting between Dangote and the Nepalese government concerned power requirements for the project. Dangote intends to generate 30MW itself and has asked Nepal to provide 30MW. From the CEO downwards the cement producer clearly understands the problems of underdeveloped infrastructure. This is not surprising given his comments above!
That MINT economies are growing powers will not surprise the cement industry. In this week's Global Cement Weekly, in addition to the Dangote story, we feature two news stories focusing on direct industry capital investment in Indonesia. Looking more widely nearly half the stories are from BRIC or MINT countries.
With this in mind Global Cement has developed its own buzzword for the cement industry in 2014: the VISA group. This group includes Vietnam, Italy, Spain and Australia, countries that have all had problems with their cement industries in 2013 such as a production overcapacity or financial losses. If readers have any nicknames of their own for groups of cement producing nations let us know at This email address is being protected from spambots. You need JavaScript enabled to view it..
Sinoma signs US$536m deal with Dangote
12 December 2013Nigeria: Sinoma International Engineering has signed a US$536m deal with Dangote to build two 6000t/day clinker production lines and accessories in Sagamu. The contract includes engineering design, equipment procurement and supply, civil construction, electrical equipment installation, debugging, performance appraisal and accessory projects covering the production process from crushing to packaging and delivery by the bag and in bulk.
Nigeria: Dangote Cement intends to reach a total cement production capacity of 50Mt/yr by 2016 which will make it Africa's largest cement producer. The company's chief executive, DVG Edwin, summarised production projects by the Nigeria-based cement producer: "Our plant in Senegal will soon be producing cement and our South African venture, Sephaku Cement, is well on track to open in early 2014. These two plants will be our first production ventures outside Nigeria as we aim to become Africa's leading supplier of cement," said Edwin.
Edwin revealed that construction work is underway at Mugher, Ethiopia for a 2.5Mt/yr cement plant. Operation is scheduled to begin in October 2015 at a 3Mt/yr gas-fired plant in Mtwara, Tanzania. Cement production is expected to start in mid-2014 at a 1.5Mt/yr in Ndola, Zambia. In Cameroon a 1.5Mt/yr grinding plant will be completed in the first half of 2014 and an integrated 1.5Mt/yr cement plant is expected to begin production in the second quarter of 2016. A 1.5Mt/yr cement plant in South Sudan and a 1.5Mt/yr integrated cement plant in Kenya are both set to become operational in 2016.
Along the coast of West Africa Dangote nears completion of import facilities to receive and bag bulk cement produced in Nigeria and Senegal. Additional import facilities in Sierra Leone are due to begin by the end of 2013 or early 2014.
In Liberia Edwin said that the order for equipment has been made for an import facility in Freeport Monrovia. Imports into Liberia are expected to commence in early 2015. The company plans to build a 1.5Mt/yr grinding plant in Abidjan, Ivory Coast, with operations projected to begin in early 2015. In Ghana, the company plans to open 1.5Mt/yr grinding plants in Tema and Takoradi by early 2015. Finally, Dangote cement has recently announced its intention to build an integrated 1.5Mt/yr plant in Niger.
Dangote Cement posts US$952m third quarter profit
06 November 2013Nigeria: Dangote Cement reported a growth of 28.7% in revenue and 39.4% in profit for the nine months ending on 30 September 2013.
According to the unaudited results, profit before tax (PBT) rose to US$952m, an increase of US$284m on 2012, while operating profit rose by 36.4% to US$989m. Revenue for the period increased by US$404m (28.7%) to US$1822m, compared to US$1542m in 2012.
Commenting on the results, Dangote Cement Group Managing Director, Devakumar V G Edwin, said that demand for cement remained strong in Nigeria, with the company reporting sales nearly 30% higher than in the nine months to 30 September 2012.
"Our plant in Senegal will soon be producing cement and our South African venture, Sephaku Cement, is well on track to open in the early part of 2014. These two plants will be our first production ventures outside Nigeria as we aim to become Africa's leading supplier of cement," said Edwin.
Dangote Cement is reported as Nigeria's leading cement producer, with three plants in Nigeria and plans to expand into 13 other African countries. The group intends to build more integrated, grinding and import facilities across Africa, bringing its total capacity to over 50Mt/yr by the end of 2016.
Nigeria: FLSmidth and its affiliated companies have signed contracts with Nigerian cement producer Dangote Cement plc for the operation and maintenance of certain production lines at its cement plants in Nigeria for five years. The parties have agreed not to disclose the value of the contracts.
The contracts, which together constitute the largest operation and maintenance contract awarded to FLSmidth to date, are for the operation and maintenance of the plant from crusher to packaging, including a full upgrade of the automation control systems. FLSmidth will start the operation and maintenance at one of the plants around April 2014. The operation and maintenance of the other lines will follow subsequently.
"These orders underline FLSmidth's abilities and growing role as operator of cement plants. In choosing FLSmidth for the operation and maintenance of its cement plants, the Dangote Group placed great emphasis on our focus on the use of local manpower and training, including our proven ability to train large numbers of staff through FLSmidth Institute - the current contracts include a workforce of around 1000 people," said Bjarne Moltke Hansen, FLSmidth Group Executive Vice President.
Dangote Cement is the largest cement producer in Nigeria, with more than 60% of the market share. Currently the fastest growing cement producer in Africa, Dangote Cement is projected to have a production capacity of around 50Mt/yr by 2016.
Guillaume Roux appointed Country CEO of Lafarge in Nigeria
16 October 2013Nigeria: Lafarge has announced the appointment of Guillaume Roux as the Country Chief Executive Officer for Nigeria and Benin Republic effective from September 2013. He succeeds Jean-Christophe Barbant.
Roux, a joint French and US national, is a graduate of the Institut d'Etudes Politiques in Paris. He joined the Lafarge Group in 1980 as an Internal Auditor.
After holding several key positions in the Finance Department in France and the United States, he was appointed as Vice President, Strategy and Marketing for North America in 1996 and later as Chief Executive of Lafarge operations in Turkey in 1999.
In 2002 he was given responsibility for Lafarge's cement operations in South-East Asia, a position he held until he joined the Executive Committee of Lafarge Group as Executive Vice President and Co President of the Cement Division, with the responsibility for the cement business in Eastern Europe, the Middle East and Africa in 2006.
Roux is a member of the Executive Committee for Lafarge Group and combines this role with his current responsibility for Lafarge's operations in Nigeria and Benin Republic. This is the first time a member of the Group Executive Committee will also be a Country CEO.
Sinoma signs US$277m clinker line project in Nigeria
16 October 2013China: Sinoma International has announced that its subsidiary Sinoma Construction has signed a US$277m contract to build a 6250t/day clinker production line for the United Cement Company of Nigeria's Calabar plant. Sinoma will be responsible for equipment and steel structure supply, design, installation, civil construction, commissioning and training in the whole process from mine crushing to cement shipping. Construction of the cement mill is planned to be completed by the end of 2015. Construction of the clinker line is planned to be finished by mid-2016.
Dangote orders new Loesche mill for Ibese
19 September 2013Nigeria: Dangote has ordered a new vertical roller mill from Loesche for a new project, Ibese 7, at its Ibese cement plant. The mill is the 13th mill the Nigerian cement producer has ordered from Loesche for Ibese.
The order is for a LM 63.3+3 vertical roller mill for grinding clinker with components such as gypsum and limestone. The product rate of clinker type CEM I will be 310t/hr at 3200 blaine while the product rate of clinker type CEM II will be 295t/hr at 4500 blaine. The gearbox capacity for the LM 63.3+3 will be 6700kW.
In addition to the mill Loesche will deliver a LF 20 (burner dual-fuel HFO / NG) hot gas generator and all the mechanical equipment between the mill pre-bins and the product bucket elevator. Loesche will also supply all electrical equipment and automation, the building steel structure and the detail engineering of the civil works. A latest generation type LDC classifier will also be delivered by Loesche. Commissioning is scheduled for the end of April 2014.
CCNN to raise US$280m for new line
27 August 2013Nigeria: The Cement Company of Northern Nigeria (CCNN) has disclosed plans to raise US$280m for the establishment of a new 1Mt/yr cement production line.
According to the chairman of CCNN, Alhaji Abdulsamad Rabiu, the board of the company is now ready to implement the resolution passed at the 32nd AGM (in 2011) that authorised it to raise the necessary funds.
To help the expansion, the investment includes new coal grinding mill and accessories to help it produce more electricity. CCNN currently produces 90% of its required electrical energy requirements due to high prices and unreliable national network provision. The chairman added that the company had previously implemented an alternative fuel strategy by using rice husks. This has already cut its production costs by 15%.
CCNN made a net profit of US$7.4m in the year to 31 December 2012. This was down by nearly 50% compared to the US$14.2m that it made in the year to 31 December 2011.