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  • Dangote vows to make cement cheapest materials

    Dangote vows to make cement cheapest materials

    • Unveils 32. 5 cement for plastering

    Largest producer of cement in Nigeria, Dangote Cement Plc., has vowed to make cement one of the cheapest construction materials in the country to enable more Nigerians own their houses.

    Its Group Managing Director, Mr. Edwin Devakumar, who spoke at the unveiling of the 32.5 and 3X cement in Lagos, said the company is working assiduously to increase cement production from the current 29 million tons to 42 million tons from its factories across sub-Saharan Africa.

    He said it was part of efforts to meet the aspiration of consumers that made the company to crash ex-factory price of cement to N1,000.

    To ensure that the N1000 price is sustained in the market, the company delivers the product to dealers with its enhanced transportation system. The decision, according to the company, will ensure reduced retail price.

    Devakumar said: “We have also drastically reduced the price of 42.5, which is our premium to N1,150 per bag ex-factory, ex-VAT, for the benefits to trickle down to the consumers. We have enough trucks to deliver cement at the door steps of dealers and consumers.”

    He said the products would henceforth, be delivered at the door steps of consumers in the Southsouth, Southeast and Southwest at N1000 per bag because of the proximity of the factories to these regions, while they will charge N150 per bag in other parts of the country.

    Devakumar said its major priority is to ensure that customers are protected in the distribution chain, assuring that it would put mechanism in place to monitor the sale of the product.

    He expressed optimism that the price reduction will increase per capita consumption of cement in the country, which he noted is currently lower compared to other African countries.

    He said the company is poised to make housing affordable to the majority of Nigerians by not only making cement cheap but accessible to the people.

    He debunked the allegation of monopoly against them by competitors, but rather charged them to put the interest of consumers at heart.

    The Director-General of Standard Organisation of Nigeria (SON), Dr. Joseph Odumodu, urged cement manufacturers to key into the Nigeria Industrial Standard (NIS), on cement standardisation as they are determined to pursue quality standards as a regulator in the manufacturing sector.

    Harping on the essence of adhering to the ongoing cement standardisation in the country, Dangote’s Chief Marketing Officer, Mr. Oare Ojiekere said the 32.5 is meant for plastering only and it is lower in grade and quality compared to 42.5 and 52. 5 cement grades.

    He advised consumers to look at the grade and usage inscription on the bags of cement before purchasing them, noting that there are grave consequences of using cement meant for plastering on casting and concrete work.

  • Experts praise reduction of cement price by Dangote

    Experts praise reduction of cement price by Dangote

    EXPERTS have hailed the reduction of cement price by Dangote Cement Plc to N1,000 from N1,800. They said it is a good omen which  would encourage more developments and, by extension, more jobs not only for professionals but artisans who have been out of jobs because of stalled projects. National President, Nigerian Institution of Structural Engineers (NIStructE), Dr. Samuel Ilugbekhai, said the price reduction is an achievement which would benefit many, directly  and  indirectly.

    He said: “By this singular act of patriotism, cement is being made more available and more affordable for developmental purposes. Coming barely a week after the conference of the Nigerian Institution of Structural Engineers (NIStructE) on “The Effect of Cement Strength  on Concrete Performance” where we called on the regulating authorities to lay more emphasis on the manufacturing of cement to ensure that they meet national and international standards,  I am particularly gladdened by this development and I humbly encourage all other cement manufacturers to reduce their prices so that cement will be more affordable to  more Nigerians across the country.”

    President, Building Collapse Prevention Guild, Mr. Kunle Awobodu, hailed the price reduction, noting that it was part of their campaign which they recently took to the National Assembly when they presented a position paper to the Upper Legislative Assembly adhoc committee on cement. He said part of their argument was that cement is capable of causing building collapse due to its exorbitant price as builders may be tempted to cut corners.

    Awobodu, who is the third vice president of the Nigerian Institute of Building, canvassed a situation where a bag of cement will not cost more than N800 so that many can afford it. He regretted that the product was more expensive in Nigeria  of all cement producing countries, and hailed the reduction. He encouraged other companies to follow the example of Dangote Cement Plc.

    A town planner and immediate past Secretary General, Association of Town Planning Consultants of Nigeria (ATOPCON),  Mr. Ayo Adejumo said the reduction in the price of cement will increase activities in the construction sector. He noted the high number of abandoned projects in the country which is tied to high construction cost.

  • Ebola stalls Dangote Cement’s expansion in Sierra Leone

    Ebola stalls Dangote Cement’s expansion in Sierra Leone

    Nigeria’s largest company and the continent’s biggest producer of the building material, Dangote Cement Plc (DANGCEM),  said it is delaying a planned expansion in Sierra Leone due to the Ebola outbreak.

    “Sierra Leone was scheduled to start this month, but we had to put the project on hold. When the crisis abates then we’ll immediately start moving ahead,” its Chief Executive Officer, Devakumar Edwin said on a conference call yesterday.

    Companies have slowed investment in Sierra Leone, Guinea and Liberia, the three countries affected by the Ebola outbreak estimated to have killed more than 5,000 people in the sub-region. Dangote Cement’s parent company, Dangote Industries Limited postponed a visiting day for investors in, Lagos, in September amid Ebola fears. Nigeria was declared Ebola-free last month by the World Health Organisation (WO).

    Dangote Cement, controlled by billionaire Chairman Aliko Dangote, expects to have a cement-production capacity of 29 million metric tons in Nigeria by year end. The company plans to expand in 13 other countries on the continent, bringing total capacity to as much as 60 million metric tons by 2016.

    Operations in Cameroon, Senegal and Zambia are set to  begin producing this year, while a plant in Ethiopia will start getting commissioned next month, Edwin said.

    Persistent fuel disruptions to Dangote’s Nigerian plants are expected to ease after gas-supply authorities assured the company they don’t anticipate major disruption within the next six months, according to Edwin. They said supply would come from producers including Royal Dutch Shell Plc (RDSA) and Exxon Mobil Corp., he said.

    Nigeria sale volumes were down one per cent to 9.8 million tons in the nine months through September, the company said Oct. 31.

    Its group profit for the period fell 10 per cent to N140.5 billion ($844 million) even as revenue climbed 7.3 per cent to N310.2 billion.

    “The gas-supply was a major constraining factor,” Edwin said. The authorities “have reviewed the pipeline integrity, the condition of the gas treatment stations, including the major scheduled maintenance which they have undertaken in the recent past.”

    Dangote Cement’s share price has declined 4.6 per cent this year to N208.89, compared with the 13 per cent drop of the Nigerian Stock Exchange (NSE) All-Share Index.

  • Experts praise reduction of cement price by Dangote

    Experts praise reduction of cement price by Dangote

    Experts have hailed the reduction of cement price by Dangote Cement Plc to N1,000 from N,800. They said it is a good omen which  would encourage more developments and, by extension, more jobs not only for professionals but artisans who have been out of jobs because of stalled projects.

    National President, Nigerian Institution of Structural Engineers (NIStructE), Dr. Samuel Ilugbekhai,said the price reduction is an achievement which would benefit many, directly  and  indirectly.

    He said: “By this singular act of patriotism, cement is being made more available and more affordable for developmental purposes. Coming barely a week after the conference of the Nigerian Institution of Structural Engineers (NIStructE) on “The Effect of Cement Strength  on Concrete Performance” where we called on the regulating authorities to lay more emphasis on the manufacturing of cement to ensure that they meet national and international standards,  I am particularly gladdened by this development and I humbly encourage all other cement manufacturers to reduce their prices so that cement will be more affordable to  more Nigerians across the country.“

    President, Building Collapse Prevention Guild, Mr. Kunle Awobodu, hailed the price reduction, noting that it was part of their advocacy campaign which they recently took to the National Assembly when they presented a position paper to the Upper Legislative Assembly adhoc committee on cement.

    He said part of their argument was that cement is capable of causing building collapse due to its exorbitant price as builders may be tempted to cut corners.

    Awobodu, who is the third vice president of the Nigerian Institute of Building, canvassed a situation where a bag of cement will not cost more than N800 so that many can afford it.

    He regretted that the product was more expensive in Nigeria  of all cement producing countries, and hailed the reduction. He encouraged other companies to follow the example of Dangote Cement Plc.

    A town planner and immediate past Secretary General, Association of Town Planning Consultants of Nigeria (ATOPCON), Mr. Ayo Adejumo said the reduction in the price of cement will increase activities in the construction sector. He noted the high number of abandoned projects in the country which is tied to high construction cost. He predicted a situation where their will increased activities for the professionals and artisans in the sector in the next two or three months.

    He said the overall effect of the price reduction will boost the over all economy and also lift the manufacturing sector.

  • Dangote crashes cement price

    Dangote crashes cement price

    •A bag now N1,000

    A leading cement manufacturer, Dangote Cement Plc, has announced cuts in the prices of the product, a development seen as likely to make cement cheaper than it has ever been since 2005.

    The new price regime announced by its Group Managing Director, Mr. Devakumar Edwin, indicated that the Dangote 32.5 cement grade is now pegged at N1,000 per 50-kilogramme bag, while the higher 42.5 grade is to sell for N1,150 per bag.

    The new prices – exclusive of the Value Added Tax (VAT) – represent about 40 per cent discount on the prevailing market price of the product, which is being sold for N1,700 irrespective of the grade, across the country.

    Edwin, in a statement yesterday, said the move was in line with the company’s commitment to the nation’s dire need for the development of infrastructure and to boost the federal and state government’s efforts to reduce the about 20 million housing deficit in Africa’s largest economy.

    The statement added: “We recognise the need for a dramatic increase in the response to the huge infrastructure and housing deficit in the country, and one of the ways of addressing the issue is bringing the price of building materials down to much more affordable levels, especially cement, as part of our own contribution to the transformation agenda of the President Goodluck Jonathan administration and the attainment of key milestones in the Millennium Development Goals (MDGs)”.

    The statement claimed that since the begin of the implementation of the backward integration policy for cement in the country over 12 years ago, the local production capacity of the product rose from less than two million metric tonnes per annum to about 38 million metric tonnes per annum today.

    It added that during the over 12 years’ period of the policy, over $20 billion was directly and indirectly injected into the industry with Dangote Cement Plc accounting for 60 per cent of the amount.

    Edwin also noted that the company would continue to ensure alignment of its corporate social responsibility with its strategic business initiatives and also evaluate its pricing regime in Nigeria’s best interest.

    In compliance with the Standards Organisation of Nigeria’s (SON) directive and regulation on the various grades of cement and their prescribed uses, Dangote cement launched its brand of the premium 32.5 cement grade, which has been restricted to plastering use only.

    The country’s largest cement producer noted that the move was to develop a full bouquet of cement types to meet the varying needs of consumers for the different grades of cement.

    The company, with this move, now produces 42.5 for column casting, block making, decking and other general purpose construction work that require high strength, while also producing the 32.5 grade for rendering or plastering.

    Following the price reduction, the National President of the Block Moulders Association of Nigeria, Alhaji Rasidi Adebowale, said he received the news with happiness, especially on what the price reduction holds for his members in Nigeria. He expressed the hope that the new price review would translate to reduction in the price of blocks.

    Also, the President of the Nigerian Institute of Architect Bruno Niyi hailed the decision and urged the management of the company to sustain the new price regime and ensure it was not hijacked by profiteers.

  • 15 get Dangote Academy placement

    Fifteen students drawn from the five technical colleges in Lagos State are to undergo an 18-month training under the junior technician scheme at the Dangote Academy in Osogbo.

    The 15 trainees were the best among 524 from the colleges, who sat for a selection examination recently.

    Congratulating them, the Executive Secretary of the Lagos State Technical and Vocational Education Board (LASTVEB), Mr Olawumi Gasper, said the training is a rare opportunity.

    “This is a rare opportunity for you, which you won’t appreciate. We put this together for you to go for intensive training in your area of specialisation and any of you might one day become the Managing Director of any of the Dangote Companies like the cement, sugar, refinery etc. There are so many students with first degrees out there, but today, you have that opportunity which will not stop your education because you are almost the first set to go through the German system of education,” he said.

    Gasper, an engineer and former Rector of Lagos State Polytechnic (LASPOTECH), added that the students would be absorbed automatically into the Dangote Company after the training and urged them to comport themselves well for other students coming behind to enjoy such benefit.

    “As a senior colleague, I am assuring you that you will be employed automatically once you are through with your training at Osogbo and you can be taken to Accra, Angola etc anywhere where we have Dangote Company.

    “I will like to implore you all not to misuse this opportunity for others coming behind to also benefit from it. You are the first batch, and we still have a second batch of 30 and a third batch of 20.

    “Please behave well and form a strong bond so that they can continue to recruit from Lagos State. I’m happy you all did well and I believe you will make us proud,” he said.

    The students’ leader, Paul David, who is going to study Welding and Fabrication said: “On behalf of my colleagues, I am saying thank you and we promise to behave well, do as you have advised and make you proud.”

  • Block makers hail Dangote on cement standard

    Block makers hail Dangote on cement standard

    Block moulders have hailed Dangote Cement Plc for its leading role in enlightening stakeholders in the building and construction industry on cement standardisation and other allied products undertaken by the Standards Organisation of Nigeria (SON).

    President of the North zone of the National Association of Block Moulders of Nigeria (NABMON), Alhaji Rasheed Adebowale, spoke at the weekend at the Obajana cement plant of the company after a tour of the facility by the members of the national association.

    He noted that Dangote Cement’s efforts would create the desired awareness on how members of the association would always ensure better quality for the blocks they make.

    The union leader said NABMON would remain grateful to Dangote Cement for enlightening block moulders throughout the country to enable them understanding how quality blocks could be produced.

    Adebowale decried the spate of building collapse and regretted that the blocks his colleagues made were the first of the items in building that people usually point accusing fingers at.

    The NABMON president noted that Dangote Cement’s enlightenment would enable the members to make stronger blocks.

    He said in line with NABMON’s motto of “Quality is our goal,” quality and zero tolerance for using poor and substandard materials to mould blocks remained topmost in the association’s agenda.

    Adebowale said: “We are grateful to Dangote Cement. We have a better understanding of how blocks are produced and what it takes to produce quality blocks. The presentation afterwards have also revealed to us why it is not in our interest to produce substandard blocks that would later give way and cause loss of lives and property.”

    Dangote Cement’s Sales Director for the Northwest, Obasola Alo said the company was creating a platform for stakeholders to be happy in their business.

  • More Dangote Cement coming

    More Dangote Cement coming

    The management of Dangote Cement Company said yesterday that it would release 29 million tons of 42.5R grade cement into the market before December.

    The Regional Manager (Safety), Johnson Olaniyi, said this at a facility tour and seminar organised for building block makers at the Obajana plant in Kogi State.

    He allayed fears of scarcity of cement in the market, saying the company has stepped up production of the 42.5R grade.

    “Dangote Cement is making a minimum of 1million storage capacity of the 42.5R cement at its depot nationwide.

    “We are also making delivery easy through our new three approaches of self-collection, depot and home delivery. So, the issue of scarcity of the 42.5R cement will never arise.”

    He said the 42.5R cement would address  building collapse in the country, adding that the 42.5R cement is better for block molding and the 32.5R cement for plastering.

    The National Chairman of Block Makers Association of Nigeria (BMAN), Rashidi Adebowola, said the facility tour was to acquaint members on the art of making cement.

  • Why we are sponsoring ‘Facetime’ on CNN, by Dangote

    Dangote Industries Limited has said its sponsorship of ‘Facetime’ on the Cable News Network (CNN) offers it a unique window into African business.

    The programme, which made its debut on September 19, would feature Dangote’s expansion drive across the continent.

    ‘Facetime’ is a high-profile segment within CNN Marketplace Africa, where each week a major player from the continent’s business community is interviewed. CNN Marketplace Africa is the destination for access to movers and shakers at the forefront of African business.

    The show goes beyond bringing viewers the new business solutions and industry trends redefining African business. On-air content is complemented by distinctive online editorial at a CNN Marketplace Africa micro site, where popular and innovative content is shared across social channels.

    While announcing the deal, Vice President, Regional Ad Sales, EMEA, CNN International, Antonio Canto, said: “We are delighted that Dangote Industries Limited is working with CNN to promote its brand internationally in a TV sponsorship across all CNN International global feeds. The ‘Facetime’ segment in CNN Marketplace Africa is an important programming strand to be associated with because the content reflects the dynamic nature of African business. Dangote’s expansion, underpinned by this bespoke advertising campaign with CNN, is a brand-builder for African business as a whole,” he added.

    Explaining the group’s decision to sponsor the programme, President and Chief Executive of Dangote Industries Limited (DIL), Aliko Dangote, said his company was supporting the programme to clear the misconception about Africa. Besides, the lack of information on Africa was holding back foreign investment, he added.

    “Africa also offers one of the highest rates of return on investment in the world, a fact that discerning foreign investors have since acknowledged. Indeed, Africa has turned the corner and is catching up with the rest of the world in the race for development. Dangote Industries Limited is delighted to sponsor the ‘Facetime’ segment in CNN’s Marketplace Africa because it tells compelling success stories about Africa. Such content can, ultimately, position Africa as an attractive investment destination and foster development that lift communities and nations into prosperity. This is Africa’s time,” he said.

    According to him, some investors still have stereotypical images of Africa etched on their minds. A new Africa is emerging from the ashes of her dark past, and is fast rising and is gaining accelerated speed, in all indices of human development. Many appear to have taken little notice of this silent revolution that is sweeping across Africa like a tornado. There is growing optimism everywhere about Africa, on a scale never before imagined.

    “For instance, Rwanda, which was only two decades ago, devastated by war, is one of the success stories of this African renaissance. Rwanda is fast becoming Africa’s investors’ delight, and currently ranks 45th in the World Bank’s ease of doing business. Similarly, the economy of Ethiopia, once a global metaphor for famine, has been growing at a double-digit for the past five years. This growth has attracted Ethiopians abroad, who are coming home with expertise and capital to develop their country currently ranked the 10th largest livestock producer in the world.

    Dangote said there is growth in the middle class, with increased purchasing power, across Africa. This has provided an incentive for fast-moving consumer goods (FMCGs) firms, which are scrambling to invest in Africa. The increase in population growth of Africa (estimated at one billion), abundance of natural resources, and clement weather, also make Africa a viable proposition for investors.

    “The Chinese, who have been smart to move in early enough, are reaping the fruits, especially in the construction industry, in which they possess considerable expertise. They are building factories, roads and railway lines across Africa. In the last eight years alone, foreign direct investment (FDI) has helped create 1.6 million new jobs in Africa. Capital investments are projected to reach $150 billion in 2015.

    Determined not to be outdone by the Chinese, Western companies are now taking more interest in Africa. General Electric (GE), the world’s largest infrastructure company, recently declared its intention to invest in Africa.

    African companies are not sitting back idly as they are behind a growing percentage of FDI, which has been going to sectors such as manufacturing and services, in recent years. South African big retail shops, such as Shoprite, Massmart and Spar, and telecoms company, MTN Group; Etisalat of the Middle East; and Airtel of India, have all gained a foothold in Nigeria, which has witnessed an unprecedented growth in number of subscriber base from 500,000 fixed lines in 2001 to 98.4 million as at October 2011.

    “This growth is the fastest anywhere in the world! African markets must re-position themselves to key into this economic revolution.

    In 2010, the Boston Consulting Group (BCG) of the United States named 40 African Companies that have the potential to rival Fortune 500 Companies based on their size, geographical spread and turnover. Dangote Group is one of them. Dangote Cement Plc is also the only Nigerian Company on Forbes Global 2000 Companies.

    In the last few years, we have invested close to $4 billion in various projects across Sub-Saharan Africa (SSA). We are setting up new cement plants in eight African countries, namely: Senegal, Zambia, Tanzania, South Africa, Republic of Congo, Ethiopia, Cameroon, and Benin Republic. We are also developing import terminals in the following African countries: Ghana, Sierra Leone, Liberia, Cote D’Ivoire, Benin Republic, Togo and Guinea (Conakry).

    “All these projects, which are largely driven by huge deficit in local supply of cement in the countries listed, are at different stages of progress, and will be completed between 2012 and 2014. Our ultimate goal is to rank among the top eight cement producers in the world by 2014. Our aspiration to be the leading cement producer in Africa is a logical step after we have achieved domestic dominance and have become self-sufficient in cement production as a nation. In Nigeria, Dangote cement accounts for more than 60 per cent of market share. We will start exporting cement to neighbouring countries such as Liberia, Sierra Leone and Cote D Ívoire, as from this year.’’

     

     

  • Dubai deals may be billions, says Dangote

    Dubai deals may be billions, says Dangote

    Africa’s richest man, Aliko Dangote, said further deals with the Investment Corporation of Dubai may run into billions of dollars after the Emirati holding company invested $300 million in his cement business last month.

    “We have also agreed to invest in other other ventures in oil and agriculture,” Dangote said yesterday in an interview at a conference in Dubai. “They already have a seat on our Board. This could run into billions of dollars. There are a lot of opportunities that we are looking at with ICD.”

    ICD is exploring opportunities to work with the Nigerian billionaire after taking an unspecified holding in Dangote Cement Plc (DANGCEM) last month, its first major Africa investment, ICD Chief Executive Officer Mohammed Al Shaibani also said today in Dubai. The company is diversifying its investments, which include Emirates airline and Emaar Properties PJSC.

    Dangote, whose cement and commodities businesses built him a $23.1 billion fortune, according to the Bloomberg billionaires index, partnered with the private-equity firms Blackstone Group LP (BX) and Carlyle Group LP (CG) in August for Africa investments. He plans to spend about $3 billion to boost production of sugar and rice at his companies, he said today.

    Dangote’s cement business, the biggest producer in Africa, has the capacity to produce 29 million tons in Nigeria and plans to expand in 13 other countries on the continent.

    The billionaire is bidding for gas assets in Nigeria, Africa’s largest economy, to help stem continuing disruptions to his cement plants in the West African nation. He’s also building a $9 billion oil refinery and petrochemical complex in Nigeria’s southwest that is scheduled to be completed in 2016.

    “We are looking forward to doing more with Mr. Dangote, and we have some things that we are exploring at the moment,” ICD’s Al Shaibani said. “Having the right partner, especially in Africa, is the key thing.”