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Dangote boosts Nigeria’s cement production

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By Timothy Akintola

Dangote to build a 6 million ton per year cement company in Itori, Ogun state.

Dangote Industries Limited is advancing in its efforts to augment the production of cement to further expand Nigeria’s capacity for exporting cement and enhance the economy by increasing diversification and foreign exchange inflow. The demand for cement is mostly driven by urbanization, infrastructural and housing growth, as well as an increase in population. With Sub-Saharan Africa boasting of a population of 1.1 billion, the factors have pivotally increased the demands of cements in Africa. In fact, the United Nations have predicated the Sub-Saharan region would witness a population increase of over 2.1 billion by 2050. Two-thirds of this predicted population is further expected to be absorbed by the urban environment, which will be the abode of an additional 950 million people.

Also, the World Bank also regarded Africa as the fastest growing region in the world. With every expansive development that the region experiences, there is an urgent need for infrastructural development such as housing and commercial buildings. This creates an important opportunity for Dangote cement, as it aims to solve the demands for cements. Evidently, the business moves of Dangote Industries like the signed agreement with China Simona International Engineering to construct a 6 million ton per year cement plant in Itori, Ogun State, shows the company’s commitment to bridging this gap.

The project posed to enhance domestic economy via creation of jobs.

This agreement was signed by Aliko Dangote, the Chairman of Dangote Industries, along with the group’s executive director, strategy, capital project and portfolio development, Devakumar Edwin. China Simona Engineering was also represented by Yin Zhisong and Liu Renyue, the group’s President and Chairman respectively. Dangote noted that the cement plant was poised to further increase the local production capacity to about 41.25 million tons per year, totaling Africa’s production capacity to 57.6 million tons per year. According to him, this development would boost Nigeria’s capacity to export cement and enact immense diversification in its economy.

Dangote also explained that the project would overtly enhance the domestic economy via the creation of numerous direct and indirect jobs, as well as driving the economic growth in the Itori region, as other ancillary businesses would take advantage of the opportunity in providing other services in the region. He added that this development was in line with the group’s vision of promoting the creation of locally made goods and curb the country’s reliance on importation in spite of the bountiful raw materials in the country.

Company had recorded immense growth across all areas over the last decade.

Simona was regarded as one strategic partner that has been immensely helpful in implementing important projects in the company. The President of China Simona Engineering, Yin Zhisong expressed complete satisfaction and confidence in the commitment of Dangote Group to construct cement plants across Africa. He noted that the company was honoured to have overseen the construction of this cement plant for Dangote Cements. On the growth of Dangote Cement, Aliko Dangote recently pointed out that the company had recorded immense growth across all areas over the last decade.

In a recent statement, it was disclosed that the group’s volume was almost at 30Mta, as well as an increase in the capacity was experienced to about 51.6 Mta. He also noted that the company was presently exporting cement across 5 countries in Africa. Dangote Cement resolutely pointed that it was its strategy to steadfast and focused on organically growing across Nigeria and Africa, whilst helping in the realization of regional integration in Africa by enhancing trade within Africa. The company also promised to deliver high profits and values to its shareholders. The company also pointed its resolve to remain transparent towards environmental impacts while taking necessary actions on climate issues.

Dangote promises to build plants across west and north Africa.

He further promised to build plants across the West and Central Africa to completely curb foreign importation of cement. The plant is however predicted to have two Lines x 6,000 TPD Clinker Production with an installed capacity of 12,000 TDP Clinker Production for its operations. This would be Dangote’s fourth cement plant constructed in Nigeria as a greenfield project. Presently, the company leads Africa in the production of cement with 51.6 Mta across Africa.

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