What Dangote’s plan to build two new cement plants means for Nigerians

Africa’s richest man and president of the Dangote Group, Alhaji Aliko Dangote, has announced the commencement of the construction of new cement plants in two communities in Nigeria.

The new cement plants would be situated in Okpella, northern part of Edo State, with a three million per annum capacity plant and another six million per annum capacity plant in Itori, Ogun State.

The new plants are expected to add nine million metric tonnes per annum (mmpta) to the company’s current local cement output from 29.25 million metric tonnes per annum to 38.25 million metric tonnes per annum and could supply the entire western and central Africa region

According to Devakumar Edwin, the group managing director and chief executive officer (CEO), Dangote Cement Plc, the plants which will come on stream within the next three years, will help expand the spread of its manufacturing outfits, thereby reducing the transportation cost component of operations.

Access to Quality Products

Onne Vander Weijde, the group managing director, Dangote Industries Limited,  said the demand for cement remains high considering the level of population growth in Nigeria. The new cements plant affords Dangote Cement Plc the opportunity to meet the needs of the growing population coupled with the decision of the company’s management to crash the price of cement to N1,300 from N1,800 to enable block moulders and Nigerians at large have access to Dangote’s quality cement.

Job creation  

Dangote cement plants across Africa have created employment for about 2,000 direct jobs and 5,000 indirect job opportunities. The new plants in Okpella and Itori will create 5,000 direct jobs at its early stage and more job opportunities after completion.

Dangote is set to join the top 20 global cement company

In December 2013, Dangote Cement Plc ranked 27th on the global ranking of cement companies with a production capacity of 20 million metric tonnes per year.

With a production capacity of 38 metric tonnes per year, Dangote is set to displace China’s Jidong Development and Shansui, at the 15 and 16th position on the global ranking.

The post What Dangote’s plan to build two new cement plants means for Nigerians appeared first on Ventures Africa.