Dangote Cement pledges further expansion

With the completion of its over $250 million Senegal plant, Dangote Cement has pledged further expansion and more products in the African market.

‘’In this country, Dangote will not only stop at producing cement. We also have helped beyond cement, which is the idea of the owner, to become a pan-African enterprise,” said Luk Haelterman, country head, Dangote Industries, Senegal, during the factory tour by Nigerian and Senegalese journalists.

“Senegal is a market with over-capacity of cement (only 14m people), because it had two cement factories before now. But today, Dangote has become the biggest and best because we produce the 42.5R only, which is better than what we met on ground,’’ Haelterman said.

According to him, the new plant has taken roughly $250 million to build as actual production and sales started January 10, 2015.

Serigne M. Dieng, sales and marketing director, said, “because of over capacity, Dangote Cement exports 2 million tones (MT) to Mali and the Gambia (through rail).

“Cement currently sells for 3000CFA ($5), and could come down as low as 2800CFA, depending on the location.’’

Athanasios Bampos, chief operating officer of the plant, said the location of the factory is not only rich in limestone but also in clay and laterite, which are the major components needed in cement manufacturing. ‘’The only component other Dangote cement plants import, gypsum, is being sold by a local firm, ICS Chemical Company, which is about 45 kilometres from the factory,’’ he said.

Katyen C. Jackden, Nigerian ambassador to Senegal and Mauritania, used the opportunity to thank the Senegalese government and its people for the support and opportunity given to a foreign investor like Aliko Dangote, saying “Dangote has been able to bring cohesion among African nations with his investments.’’

With this, the firm has become Africa’s leading cement producer with three plants in Nigeria and plans to expand in 13 other African countries – Ethiopia, Republic of Congo, Liberia, Tanzania, Kenya and Zambia.

According to data from global cement report, Morgan Stanley and DaMina Advisors,

sub–Saharan Africa cement consumption rose by 6.8 percent in 2014, compared with 5.2 percent in India, 3.5 percent in China, 6.4 percent in North America, and 3.7 percent in South Asia.

Dangote Cement grew its consolidated group revenue by 7.3 percent to N310.2 billion ($1.5bn), with pre-tax profits for the 9M 2014 period up by 1.5 percent to N154.1 billion ($770m).

The new plant located in Pout district of Senegal, about 75 kilometres from Dakar, the country’s capital, has a norminal capacity to produce 4000MT per day and 1.2MT per annum (pa). The plant is expected to create more than 1,000 jobs, with a total production capacity of 1.5 million tons annually.

Osa Victor Obayagbona