In a move to consolidate its leadership of the cement sector, Dangote Cement Plc has announced the commencement of the construction of two new cement plants in two communities in the country.
The new plants are expected to add 9 million metric tonnes (MMT) per annum to the company’s current local cement output of 29.25MMT, bringing it to a total of 38.25MMT per annum.
The new plants are sited at Okpella in the northern part of Edo State with a 3MMT per annum plant, and another 6MMT per annum capacity plant at Itori in Ogun State.
The group Managing Director/Chief Executive Officer, Dangote Cement Plc, Mr Devakumar Edwin, who made the announcement in Lagos, explained that the Okpella plant would be made up of one line and would produce a total of 3 million metric tonnes per annum, while the Itori plant will deliver approximately 6 million tonnes per annum from two production lines. Both plants are expected to come on stream within the next three years.
Devakumar said the move by the company is to help expand the spread of the company’s manufacturing outfits, thereby reducing the transportation cost component of their operations.
He added that the new investments would further lower the cost of production, bring about a future reduction in the price of cement and also generate employment opportunities for the youths of host communities.
Also speaking at the event, the Group Managing Director, Dangote Industries Ltd, Mr Onne Vander Weijde, said the demand for cement is still high considering the level of population growth in Nigeria, noting that Nigeria’s per capita consumption of the building material, which is just above 100kg per capita, is relatively low, indicating a massive growth potential.
The investments, according to him, would create in excess of 5,000 jobs at the beginning, noting that logistics and construction of the plants would also provide more employment opportunities indirectly to surpass that number.
In his remarks, the Special Adviser to the President of Dangote Group, Mr. Joseph Makanju, said expectations were very high about cement price reduction when the nation began building local cement production capacity.
-Leadership