The Nation Newspaper

Tag: cement

  • Dangote Cement outlines plan for profit growth

    Dangote Cement outlines plan for profit growth

    Dangote Cement Plc would shift to coal as a stable energy source, increase the group’s production capacities with the opening of new cement plants and enhance its domestic and international supply as part of a multi-prong approach to improve its performance in the period ahead.

    At the presentation of the underlying facts on the operations of the cement group yesterday at the Nigerian Stock Exchange (NSE), chief executive officer, Dangote Cement Plc, Onne Van der Weijde, outlined the strategic initiatives being taken to improve the profitability of the cement group.

    He spoke against the background of the half-year results of the group for the period ended June 30, 2016. Key extracts of the group results showed that turnover rose to N292.19 billion in first half 2016 as against N242.22 billion recorded in comparable period of 2015. Profit before tax however dropped to N124.89 billion in first half 2016 as against N128.73 billion recorded in comparable period of 2015. After taxes, net profit declined from N121.81 billion to N103.42 billion.

    Van der Weijde said the cement group would start 100 per cent coal production in September 2016 in an attempt to overcome the shortage of gas supply and reduce the challenge of foreign exchange (forex).

    According to him, the company had decided three years ago to diversify and de-risk fuel supplies by opting for coal mills as energy sources, with the coal mills now ready for operation by end of September 2016.

    He said switching to coal would improve margins compared with Low Pour Fuel Oil, improve fuel security, eliminate shutdown as 100 per cent coal use will be possible across all lines and reduce forex need for imported fuel.

    He added that the some of the company’s plant in Obajana in Kogi State and Ibese in Ogun State have already started using locally purchased coal blended with imported coal to assure optimal quality for their operations.

    “We will begin mining our own coal at Ankpa in Kogi State in fourth quarter,” Van der Weijde said.

    He noted that klin fuel is the major cost of cement production, pointing out that the group margins are affected by the inefficiencies in the fuel mix.

    He assured that in the second half, the group expects strong volume growth with Ghana likely to import more cement from Nigeria while simultaneously focusing on protection of margins in Nigeria with more coal facilities in Nigeria coming on stream and increased exports to ECOWAS countries.

    He said the groups’ Congo plant is set for operation in October 2016 while the Sierra Leone plant is expected to ready by October 2016.

    Chief executive officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema commended Dangote Cement as a dominant player in the industrial goods sector, noting that the cement group has continued to solidify itself as an innovative brand in this sector.

  • Cement production to resume in Ebonyi

    Cement production will soon come alive in Ebonyi State, it has been said.

    A deed of understanding and terms of settlement between NIGERCEM and representatives of the four host communities – Nkalagu, Nkalaha, Umuhuali, Amaezu and the Ebonyi State Government has been signed.

    With the signing of the pact in Abakaliki, the legal battles that had in the past affected the reopening of the once foremost indigenous cement production firm have been put to rest.

    The immediate past administration led by Chief Martin Elechi, had consistently closed the door for an out of court settlement, against Dr. Cletus Ibeto, who re-acquired the firm from Eastern Bulkcem and  tried to revamp the cement factory which was popularly known as NIGERCEM.

    In 2012, for instance, the Elechi administration warned IBETO GROUP against what it called illegal entry into the premises of NigerCem premises, saying its ownership was a subject of dispute in the courts.

    But an elated Ebonyi State Governor, David Umahi; Ibeto and the SSA to the Governor on Cement Production, Prince Sunday Ugwuocha, at the event described the signing of the MoU as a milestone towards the revitalisation of the company.

    Governor Umahi, who said he had in line with the popular demand of the host communities promised to allow Ibeto revamp the firm, noted that the journey to its realisation was not an easy one.

    He said, “When we were campaigning under divine mandate platform, the only request that the communities  made was that Ibeto  should be allowed to come and revamp NIGERCEM and we did promise  them that  that was going to be done.”

    Umahi, who thanked the Cement Production Implementation Committee, set up by his administration, for doing a good job, assured Ebonyi people that their 10% equity ownership of NIGERCEM was still intact.

    “Let me announce to Ebonyi people that our 10% equity with NIGERCEM is still alive,” he assured as he described the land of Ebonyi as a land made up of limestone, gold, frankincense, silver, lead, zink, etc.

    He added, “My prayers all the time is for the land of Ebonyi to vomit all the limestone, the gold, the frankincense, silver, the bauxite, lead, zink that the land has swallowed, and it has to started with Ibeto.

    The core investor, Dr. Ibeto, praised Umahi’s ruggedness, saying Ebonyians owed him (governor) for ensuring that the journey to revamp NigerCem started on a good footing.

    He thanked governor Umahi for creating the enabling environment for the takeoff of NIGERCEM.

    The chairman, Cement Implementation Committee, Chief Fidelis Nwankwo, in his opening remarks, had said the signing of the deeds marked the realisation of an age long struggle by the IBETO GROUP to revamp NigerCem.

     

  • Cement production to resume in Ebonyi

    Cement production will soon come alive in Ebonyi State, it has been said.

    A deed of understanding and terms of settlement between NIGERCEM and representatives of the four host communities – Nkalagu, Nkalaha, Umuhuali, Amaezu and the Ebonyi State Government has been signed.

    With the signing of the pact in Abakaliki, the legal battles that had in the past affected the reopening of the once foremost indigenous cement production firm have been put to rest.

    The immediate past administration led by Chief Martin Elechi, had consistently closed the door for an out of court settlement, against Dr. Cletus Ibeto, who re-acquired the firm from Eastern Bulkcem and  tried to revamp the cement factory which was popularly known as NIGERCEM.

    In 2012, for instance, the Elechi administration warned IBETO GROUP against what it called illegal entry into the premises of NigerCem premises, saying its ownership was a subject of dispute in the courts.

    But an elated Ebonyi State Governor, David Umahi; Ibeto and the SSA to the Governor on Cement Production, Prince Sunday Ugwuocha, at the event described the signing of the MoU as a milestone towards the revitalisation of the company.

    Governor Umahi, who said he had in line with the popular demand of the host communities promised to allow Ibeto revamp the firm, noted that the journey to its realisation was not an easy one.

    He said, “When we were campaigning under divine mandate platform, the only request that the communities  made was that Ibeto  should be allowed to come and revamp NIGERCEM and we did promise  them that  that was going to be done.”

    Umahi, who thanked the Cement Production Implementation Committee, set up by his administration, for doing a good job, assured Ebonyi people that their 10% equity ownership of NIGERCEM was still intact.

    “Let me announce to Ebonyi people that our 10% equity with NIGERCEM is still alive,” he assured as he described the land of Ebonyi as a land made up of limestone, gold, frankincense, silver, lead, zink, etc.

    He added, “My prayers all the time is for the land of Ebonyi to vomit all the limestone, the gold, the frankincense, silver, the bauxite, lead, zink that the land has swallowed, and it has to started with Ibeto.

    The core investor, Dr. Ibeto, praised Umahi’s ruggedness, saying Ebonyians owed him (governor) for ensuring that the journey to revamp NigerCem started on a good footing.

    He thanked governor Umahi for creating the enabling environment for the takeoff of NIGERCEM.

    The chairman, Cement Implementation Committee, Chief Fidelis Nwankwo, in his opening remarks, had said the signing of the deeds marked the realisation of an age long struggle by the IBETO GROUP to revamp NigerCem.

  • Cement production to resume in Ebonyi

    Cement production will soon come alive in Ebonyi State, it has been said.

    A deed of understanding and terms of settlement between NIGERCEM and representatives of the four host communities – Nkalagu, Nkalaha, Umuhuali, Amaezu and the Ebonyi State Government has been signed.

    With the signing of the pact in Abakaliki, the legal battles that had in the past affected the reopening of the once foremost indigenous cement production firm have been put to rest.

    The immediate past administration led by Chief Martin Elechi, had consistently closed the door for an out of court settlement, against Dr. Cletus Ibeto, who re-acquired the firm from Eastern Bulkcem and  tried to revamp the cement factory which was popularly known as NIGERCEM.

    In 2012, for instance, the Elechi administration warned IBETO GROUP against what it called illegal entry into the premises of NigerCem premises, saying its ownership was a subject of dispute in the courts.

    But an elated Ebonyi State Governor, David Umahi; Ibeto and the SSA to the Governor on Cement Production, Prince Sunday Ugwuocha, at the event described the signing of the MoU as a milestone towards the revitalisation of the company.

    Governor Umahi, who said he had in line with the popular demand of the host communities promised to allow Ibeto revamp the firm, noted that the journey to its realisation was not an easy one.

    He said, “When we were campaigning under divine mandate platform, the only request that the communities  made was that Ibeto  should be allowed to come and revamp NIGERCEM and we did promise  them that  that was going to be done.”

    Umahi, who thanked the Cement Production Implementation Committee, set up by his administration, for doing a good job, assured Ebonyi people that their 10% equity ownership of NIGERCEM was still intact.

    “Let me announce to Ebonyi people that our 10% equity with NIGERCEM is still alive,” he assured as he described the land of Ebonyi as a land made up of limestone, gold, frankincense, silver, lead, zink, etc.

    He added, “My prayers all the time is for the land of Ebonyi to vomit all the limestone, the gold, the frankincense, silver, the bauxite, lead, zink that the land has swallowed, and it has to started with Ibeto.

    The core investor, Dr. Ibeto, praised Umahi’s ruggedness, saying Ebonyians owed him (governor) for ensuring that the journey to revamp NigerCem started on a good footing.

    He thanked governor Umahi for creating the enabling environment for the takeoff of NIGERCEM.

    The chairman, Cement Implementation Committee, Chief Fidelis Nwankwo, in his opening remarks, had said the signing of the deeds marked the realisation of an age long struggle by the IBETO GROUP to revamp NigerCem.

     

  • Dangote Cement assures shareholders of better returns

    Dangote Cement assures shareholders of better returns

    Chairman, Dangote Cement Plc, Alhaji Aliko Dangote, has assured shareholders that the company would continue to deploy strategies to increase profitability in spite of the prevailing harsh operating climate. Dangote spoke at the company’s annual general meeting in Lagos yesterday.

    He said with the measures put in place, the foreign exchange volatility would not affect the operations of the company significantly, noting that other African plants of the group are operating maximally and yielding positive results to cushion the effect of the scarce foreign exchange in Nigeria.

    “We have good strategy in place; the volatility of the foreign exchange will not affect our operations. I am not an advocate of devaluation of our currency, even if that had happened; it would not have affected your company,” Dangote said to the applause of excited shareholders.

    He noted that diversification was key to the group’s strategy and that was why it has intensified its expansion.

    According to him, the way the company has gone about its expansion, it would appear it has over invested in capacity expansion in Nigeria given that it has 29 million metric tonnes per annum (mtpa) and another 12 million mtpa capacity plants under construction, but the fact remains that investments can never be enough in Nigeria.

    “The World Bank estimates that Africa needs to invest $337 billion a year on new infrastructure in power, roads, transport, and water and then spend a further $35 billion a year on operations and maintenance. This indicates the size of opportunity for a cement manufacturer operating in Africa,” Dangote said.

    Shareholders approved distribution of N136.3 billion as cash dividends for the year ended December 31, 2015. Breakdown of the dividend recommendation indicated that shareholders would receive a dividend per share of N8 for the 2015 business year, 33.3 per cent increase on N6 distributed for the 2014 business year. The dividend will become payable tomorrow.

    Key extracts of the audited report and accounts of Dangote Cement for the year ended December 31, 2015 showed that turnover rose by 25.56 per cent from N391.6 billion in 2014 to N491.72 billion in 2015. Gross profit increased by 16.63 per cent to N289.92 billion in 2015 as against N248.58 billion in 2014. Profit before tax inched up to N188.29 billion compared with N184.69 billion in the previous year. After taxes, net profit rose by 13.68 per cent from N159.50 billion in 2014 to N181.32 billion. Earnings per share thus increased by 15.2 per cent from N9.42 in 2014 to N10.86 in 2015.

    Dangote Cement grew its total assets to N1.11 trillion in 2015, 12.82 per cent above N984.72 billion recorded in 2014. Total liabilities however rose by 18.68 per cent from N392.84 billion to N466.22 billion. Shareholders’ funds also grew by 8.9 per cent from N591.9 billion to N644.7 billion.

  • Lafarge gives out 570 bags of cement at promo

    Lafarge gives out 570 bags of cement at promo

    • Over trucks containing 600bags won

    Lafarge Africa Plc has rewarded its customers with various prizes with Mrs. Yeside Oduyebo clinching the star prize of 50 bags of cement at the final raffle draw of its Buy & Win’ promo in Lagos.

    During the draw held in Ikorodu, 34 customers went home with five bags of cement, 20 customers with 10 bags of cement, 10 with 15 bags, all totaled 570 bags.

    Its Marketing Director, Bruno Hounkpati said the promotion is part of an overall strategy to win with the customers and create value for them.

    “What we want to achieve is to increase our customers’ loyalty. A repeat business or behaviour can be bribed but customer loyalty has to be earned.  We believe our customers have been good to us in spite of the situation; we are in a competitive environment,” Hounkpati noted.

    He said the promo which started  December last year ends this month, adding that it is targeted at retailers and block-moulders. He said  it is with a view to stimulating end user demand and enhancing sell out from key distributors.

    Explaining the promo works, Hounkpati said: “For the first phase, consumers who purchase 100bags of cement received an instant umbrella gift while in the second phase for every purchase of twenty bags the retailer gets a coupon which qualifies him to participate in a raffle draw with the chance of winning several gift items.

    “The promo is focused on the key regions of Lagos Island, Lagos Mainland, West and Southwest has witnessed nine different raffle draws with 60 winners emerging from each location. So far, over 700 customers have been rewarded at the different raffle draw locations which include Badagry, Abeokuta, Ibadan, Ajah, Abule-Egba, Oregun, Sagamu and Ikorodu. For the raffle prize, customers were rewarded with cement ranging from five bags to a star prize of 50 bags and other point of sales materials like Shovels, Head-pans, Pouches, Jackets, Almanacs, and T-shirts.”

    According to Hounkpati over 12 trucks each containing 600bags of cement have been given out since the commencement of the promo.

    Meanwhile, the Managing Director, Ebony De Great Nigeria Ltd, Mrs. Modupe Oshibowale, one of the key distributors of Lafarge in Ikorodu has commended the  building materials company for honouring its promise to reward its loyal customers.

    Also, the trade Marketing & Brand Manager, Lafarge Africa Plc., Tina Sobola, congratulated the winners and explained that the response and participation is indicative of the positive acceptance of the promo by customers and appreciated the efforts of the company’s distributors and all those that made the promo successful.

  • Infrastructure, housing to drive cement demand, says BUA chief

    Demand for cement will  be driven by building of infrastructure and housing development, Executive Director, BUA Group, Kabiru Rabiu has said.

    He said the firm’s target is to increase its capacity to 10 million metric tonnes per year by 2018.

    He said the company acquired a controlling stake at the Cement Company of Northern Nigeria Plc, as well as Edo Cement.This is in addition to being one of the 13 companies given licences to bring in bulk cement into the local market.

    On how the plant is powered, he said the company established 30 kilometres of gas pipeline to power their cement plant in Edo State.

    He predicted that cement price will remain stable in the short term and gradually drop in the medium term.

    Speaking at an investor conference, Rabiu said though BUA started as a trading company, importing rice, cement and flour, it later turned to a major integrated manufacturer of these products locally thereby creating thousands of jobs for in the country.

    “The company started as a trading entity importing rice, edible oil, cement as well as flour into the Nigerian market. Over the years, it began the production of what it previously imported like edible oil as well as rice and flour milling,” he said.

    He said by 2005, the firm established its first flour mill in Lagos, followed by another in Kano with 5.5 million tonnes milling capacity per day.

    Also, in 2008, BUA Group set up the second-largest sugar refinery in sub-Saharan Africa, which is situated in Lagos with installed capacity of 720,000 metric tones, he added.

    “At the moment, companies within the group are separate entities within different divisions. We have the Infrastructure division and then we have the foods division. In the infrastructure segment, we have cement, real estate, steel and port operations,” Rabiu said.

    He explained that massive infrastructure projects, commercial and residential housing development will drive cement demand in Nigeria. The BUA boss said he learnt from informed sources that President Muhammdu Buhari’s administration planned to spend about $20 billion starting from next year on infrastructure.

  • BUA is ‘Cement Brand of the Year’

    BUA is ‘Cement Brand of the Year’

    BUA Cement was at the weekend named the “Cement Brand of the Year 2015” at this year’s Marketing World Awards in Lagos at the weekend.

    The company defeated other major manufacturers including Lafarge and Dangote Cement to clinch the award. BUA Cement, a wholly owned subsidiary of BUA Group, is led by its Executive Chairman, Abdulsamad Rabiu.

    According to Instinct Media, organisers of the awards, the company won based on its consistency in delivering superior product offerings as well as setting the pace for cement manufacturing in the country.

    The company, the organisers said, has also shown a very strong brand equity and leadership in its key markets and achieved a high perception of quality amongst users of cement in Nigeria.

    Receiving the award on behalf of the company, its Group Head, Corporate Communications, O’tega Ogra, thanked the organisers for the award assuring that BUA Cement will continue to push the boundaries of innovation in its processes and products offerings in the interest of customers.

    ”To further entrench our place as a leading manufacturer, make cement more accessible as well as bring about a sustainable and fairer pricing regime, we are currently expanding our cement lines in Northern and Southern Nigeria by adding about  five million metric tonnes to our production capacity within the next two years,” he said.

     

     

  • CBN dollar policy, cement and free trade zones

    The opportunity to be heard is a remarkable difference from what happened few weeks back when we all dressed to our various offices only to be told by our employees that our businesses has been decreed out of existence by the CBN. Not only were the channels of communication wrong, the powers to technically ban those 41 items were highly questionable. Such is the impunity and hostility that has beclouded our business environment and inhibited its growth. Today we live in an economic environment of confusion, policy summersaults and inconsistencies. In most cases, you see yourself standing face to face with, and against the law. We have gotten to a level where our law and the constitution say one thing, and our operators say a different thing.

    The Free Trade Zone is a creation of statute. Its activities are governed by Decree No 63 of 1992. Going by the provisions of this Decree, business enterprises within the zone enjoy some incentives and exemptions.

    Some of these incentives include exemption from all federal, state and Local Government taxes, duties, levies, VAT and foreign exchange regulations. This is clearly written in Section 26A of the decree setting up the free trade zone. By law, the free trade zone and the CBN are institutions of coordinate jurisdiction. Free Trade Zone enterprises are in theory, regarded as a country within a country. The CBN therefore has no legislative authority over the zones. The CBN in realization of this had washed its hands off the fiscal responsibilities of the zones until this recent attempt on the annexation and colonization of the zone. The status confers and imposes certain restrictions as well as obligations on mode, module and medium of exchange. For instance, companies within the zone are incentivised to import foreign currency of any amount and export 100% of same. They are exempted from the buying of forex from the CBN, among others, thereby affirming their quasi autonomy. This suggests that the only avenue open to the operators for the sourcing and procurement of forex was the free funds, or the BDC’s. Depositing and withdrawal of dollar cash was a way of life and has never been under the sledgehammer of the CBN.

    But the dollarization policy which is now being enforced across board and borders has laid comatose the operation of the Free Trade Zone, as the only foreign exchange window open to operators had been shut, padlocked and the key flung into the ocean.

    The immediate dire consequence of this unfortunate, ill-conceived policy is the suffocation of investments within the zone leading to business closure by investors and foreclosures by banks and other lending institutions. The fall out of this would be litigations arising from breach of contracts, mass retrenchment of workers, loss of revenue by government and loss of face in the international community, and of course, the short circuiting of technology transfers – which is a cardinal factor for the setting up of the Free Trade Zone.

    Why would CBN ban 41 items in the guise that they do not have sufficient dollar to fund their imports only to turn around to ban deposit of the same currency in our banks as a result of excess dollar?

    As the CBN continues to reap from where they did not sow with regards to foreign exchange regulations within the Free Trade Zones, one needs to remind them of the ripple effect of their actions. Secondly they need to observe the thin line that separates the various organs of government as contained in the principles of separation of powers.

    When the CBN cannot give long term loan to a young graduate to buy equipment and commence the production of toothpick, why would they stop the same boy from importing N10,000 toothpick from China where the investment climate is not only conducive but predictable? To do otherwise is impunity and starvation.

    To put up an average cement plant of one million to two million metric tonnes one requires a capital outlay of about $300 – $400 million. This used to be an average of N50 billion to N60 billion. To accomplish this, using the current exchange rate, an intending investor needs an average of N80 billion. It does not stop there: The ugly side of it is that as long as this policy remains, no Nigerian can ever invest again in the cement sector. How, you would ask?

    To put up an investment of this magnitude where banks’ lending is on short-term and double digit interest rate is practically impossible in an economy of today. Let us agree that you get a willing bank to help syndicate the financing, you would be required to put down an equity contribution of about 30%. This translates to about N24 billion. The implication is that you require 10 banks to syndicate your equity alone, and another 20 banks to syndicate the remaining 70%. This is impossible. In addition you need to have your market share and popularize your brand before any bank can take this huge risk on you. What is possible is what has been the practice where backward integration policy was designed for new entrants. These new entrants had attracted an investment of over $20 billion tied to various strategic trade partnerships. These investments are threatened by this dollarization policy.

    As a member of the Presidential Committee that produced the 2009 cement policy, our recommendation was that new entrants should be encouraged to embark on backward integration with some government incentives. This was how Lafarge, Dangote, Unicem, Flour Mills etc started. They formed strategic trade partners who signed technical and business agreements towards local investments. This is how the near success story we have today in the sector

    If we have a success story in cement, why are we buying a bag of cement at N2000 in 2015? In Asia, a bag of cement sells for as low as N350 a bag; in Europe it sells at N500 a bag; in neighbouring West African countries a bag of cement sells for between N1200 and N1400 a bag. When the lie of Nigeria being a net exporter of cement was told by several persons, in several quarters, including the former coordinating minister of the economy, some of us who know covered our faces in shame.

    In a recent survey, the World Bank predicted Nigeria’s cement consumption to be 45 million metric tons. Mind you, consumption is different from demand and supply. With a total installed-not production capacity of cement at over 20 million, Nigeria still has a huge demand gap of between 15 – 20 million metric tons.

    The reality of this deceitful situation will soon hit us when government solves the insurgency situation in the North-east and commences rehabilitation works; moves to fill the over 15 million housing deficit, tackles our huge infrastructural decay; and starts the cement – base road construction, by then, existing cement plants would have started growing old, I bet you, Cement may sell as high as N3000 in this country.

    In my honest opinion, government needs to open the cement space for investors of all sizes to come in. Monopoly should be discouraged. A limit should be set as to maximum investment an individual can invest in any sector of the Nigeria economy to create room for others’ participation. This would also ease credit tension and whittle down risk appetite of banks and other lending institutions.

    This what countries like China and India have done. In China, you have over 9000 functional cement plants and over 800 in India. China for instance, manufactures over 2.42 billion tons of cement per annum, representing 58.6% of global production. In reality Nigeria produces a little above 25 million. What the government of these countries did was to liberalize investment in the sector, encourage and incentivise investors.

    What the CBN Governor has done with the recent foreign exchange restriction on cement and 41 items amounts to a ban and criminalization of businesses.

    Governments world-over encourage investments; you don’t decree, you don’t frustrate, you don’t criminalize. A toothpick importer of today may be a Bill Gate or another Dangote of tomorrow.

    Being a paper presented by Ochiagha Ufomba at the Focus Group Discussion on Impact of CBN Foreign Exchange Policy organized by the Lagos Chamber of Commerce at Oriental Hotel Lagos.

  • Dangote, Chinese firm sign $4.34b deal for cement plants in 13 countries

    Dangote, Chinese firm sign $4.34b deal for cement plants in 13 countries

    Dangote Cement yesterday signed contracts with Chinese firm, Sinoma International to build cement factories in 13 countries – 12 in Africa and Nepal, an Asian country.

    On completion, 25 million tonnes of cement will be generated annually in what is a revolution the cement sub sector. This will bring the capacity of Dangote cement to 70 million tonnes per annum.

    The $4.34bilion deal was sealed in the presence of ambassadors of some of the beneficiary countries.

    President of Dangote Group, Alhaji Aliko Dangote, signed for his group while the Chief Executive Officer, Sinoma, Mr. Shen Jun, signed for his company.

    The Chinese firm will execute the construction projects with equipment sourced from Germany.

    Aside Nigeria, whose two new plants at Itori, Ogun State with a combined capacity for six million tonnes are already under construction, a three million tonnes factory will be built in Nepal.

    The African countries that will have the integrated plants are: Ethiopia with 2.50m tonnes, Kenya with two plants and a combined capacity of three million tonnes, Zambia 1.5om tones, Senegal with 1.50m tonnes and Niger with 1.50mtonnes.

    The 1.50m tonne plants to be built in Mali, Cameroon, Cote d’Ivoire and Ghana are grinding units.

    Dangote said the a 1.5m tonnes plant in Douala, Cameroon will be inaugurated today.

    Some of the countries to host the new plants already have Dangote plants.

    All the new plants are to be completed within the next 30 months, Mr. Dangote promised, adding that on completion, the capacity of the combined factories will move up to 70 milion tonnes per annum.

    “But our goal is to attain 100million tonnes by 2020,” Dangote declared yesterday.

    According to him, the plants are being built because of the need requirement of the countries.

    He gave an example of Niger Republic which currently imports all its cement requirements despite having in abundance all the raw materials needed to manufacture the product.

    Dangote said: “We want to make Africa self-sufficient in cement production and not to become a dumping ground. We are very focused on what we are doing.”

    Dangote hailed the Nigerian government for providing the enabling environment for the business to thrive, adding that his company and Sinoma had been together for eight years “in spite of the economic recession in the world at this time.”

    He said Nigeria currently has the capacity to export 10m tonnes of cement, adding that this will go higher when the new plants go on stream.

    Jun promised that his company will provide excellent technology in the construction adding that it had completed 16 projects with Dangote.

    He vowed that the high standard which his company is known for will be kept in the execution of the projects being “a leading company in cement production worldwide.”

    With the Dangote CEO at the ceremony are Group Executive Director of Dangote Group, Mr. Devakumar Edwin and the Chief Operating Officer, Mr Olakunle Alake. Three other officials accompanied Mr Jun on behalf of Sinoma.