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Dangote to invest $3.9 bln on cement plants in Africa

On April 12, 2011  In  Vanguard Headlines

Lagos –  The Dangote Group says it will invest 3.9 billion dollars (N585 billion) in the expansion of its cement plants in some Africa countries.

Alhaji Aliko Dangote, Chairman of the company, disclosed this on Tuesday in Lagos while signing an agreement between his company and a Chinese firm, Sinoma International Engineering Co. Ltd.

He said that the expansion project, expected to be completed in 2013, would produce additional 16.5 million tonnes of cement to achieve a target of 50 million tonnes in the next two years.

Dangote, represented by Mr Devakumar Edwin, the company’s Group Executive Director ( Business Development), said that the projects included installation of equipment, mining, quarry and power facilities, among others.

Cement plants with installed capacity of 1.5 million tonnes each per year will be constructed in countries like Tanzania, Gabon and Republic of Congo.

“South Africa, Ibese and Obajana cement plants will each produce additional new lines of three million tonnes while the grinding plant in Cameroon is targeted at producing 1.5 million tonnes annually.

“The agreement signed today is for production of additional three million tonnes each from the existing plants in Obajana, Ibese and other plants,” he said.

Dangote said that the group was targeting the production of 20 million tonnes of cement before the end of 2011 from the plants.

He said that the new projects would provide over 40,000 additional jobs to truck drivers that would have multiplier effects on the nation’s economy and wealth creation.

Dangote said that the group was exploring many other power sources to save cost.

“In Senegal, we use coal to power the plant and we import the coal from South Africa. We use gas and hydro-power plant where they are available,” he said..

Mr Wu Shoufu, President of the Chinese firm, said that the agreement would strengthen business growth in the two countries.

Shoufu said that the expansion of cement plants in Africa by Dangote Group would make the region to achieve self sufficiency in cement production soon. (NAN)

One comment on “Dangote to invest $3.9 bln on cement plants in Africa

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