Dangote Expands Cement Manufacturing Capacity

Dangote Industries Limited has kept boosting cement production capacity since doing so will help the nation’s ability to export cement, allowing for economic diversification and foreign currency inflows.

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An increase in population, urbanization, infrastructure development, and housing growth all contribute to the need for cement. These are the main factors that are fuelling Africa’s high demand for cement. The population of sub-Saharan Africa exceeds 1.1 billion. The region will be home to more than 2.1 billion people by 2050, according to the UN. Urban regions, which will house 950 million more people, will absorb two-thirds of this growth. NewsReport gathered

The World Bank describes Africa as the fastest-growing and youngest region globally. As the population continues to expand, Africa urgently needs infrastructure, housing, and commercial buildings. This creates a tremendous opportunity for Dangote Cement.

Dangote Industries and China Sinoma International Engineering recently agreed to construct a six million ton per year cement plant in Itori, Ogun State.

This online information understands that the agreement was signed by the chairman of Dangote Cement Plc, Aliko Dangote, alongside the group executive director of strategy, capital projects, and portfolio development, DIL, Devakumar Edwin, while China Sinoma Engineering was represented by its group president, Yin Zhisong, and the company’s chairman, Liu Renyue.

Dangote, speaking at the signing ceremony, said that the new integrated cement plant, upon completion, will strengthen the local production capacity of Dangote Cement, bringing its local capacity to 41.25 million tons per annum and its total African capacity to 57.6 million tons per annum.

He said the Itori Cement Plant will also increase Nigeria’s capacity to export cement, thereby enabling more diversification and foreign exchange inflows for the economy.

According to Dangote, the project is further expected to develop the domestic economy through the creation of thousands of indirect and direct jobs and drive economic development in the Itori axis. He stated that ancillary businesses will be drawn to the axis and will be seeking to take advantage of the location of the cement plant to provide goods and services to staff, contractors, and other stakeholders.

He went on to say that, despite the abundance of raw materials needed for such production, the construction of the new cement plant is consistent with the Dangote Group’s vision of producing locally goods that were previously imported.

He described Sinoma as a strategic partner who has been instrumental to the success of key projects in the Dangote Group. He said, “We are comfortable working with your company.” You have handled some of our key projects, and I am positive that this project will be completed as scheduled.

Group president of China Sinoma Engineering, Yin Zhisong, expressed satisfaction with the commitment and determination of the Dangote Group in building cement plants across Africa.

According to him, it is an honor for us to build another cement plant for Dangote Group. We are proud and happy to be on this journey with the company again.

Meanwhile, recently, Dangote said: “Over the last decade, Dangote Cement has recorded exponential growth across all areas.” Group volumes are now at almost 30 Mta, our capacity has tripled to 51.6 Mta, and we export cement from five countries across Africa. As the volatile global environment propels us into a new era of uncertainties, we are fortunate that the last two years have taught us resilience, adaptability, and grit.

“These values are what we need to face unpredictable times in the future.” Dangote Cement remains the leading cement company in Africa, well-positioned for a positive and sustainable future. We are resolute in transforming Africa while creating sustainable value for our stakeholders. “I am confident that we are well equipped for our next growth journey.”

Dangote Cement noted that its strategy remains steadfast, focused on organic growth in Nigeria and Pan-Africa, while ensuring that Africa’s regional integration becomes a reality, saying, “We will continue to contribute to improving regional trade within Africa by building plants across West and Central Africa, therefore eliminating the need for the importation of cement.”

“In addition, we aim to deliver superior profitability and value to our shareholders.” “Lastly, we remain focused on demonstrating our clear commitment to transparency around environmental impacts and strategies for action while taking coordinated steps on climate issues,” he stressed.

When operational, the plant is expected to have two lines of 6,000 TPD clinker production with an installed daily total capacity of 12,000 TPD of clinker production. It is expected to be completed within 27 months with best-in-class equipment in the cement industry, sourced from Europe’s major equipment suppliers.

The plant will have its own captive power plant to generate electric power for use by cement kilns and other production processes. The Itori Cement Plant will be Dangote Cement’s fourth cement plant constructed as a greenfield project in Nigeria; the others are the Obajana, Ibese, and Okpella Plants.

Dangote Cement is Africa’s leading cement producer with 51.6 Mta of production capacity across Africa, with Nigeria accounting for 35.25 Mta. Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.25 Mta of capacity across five lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12 Mta; Gboko plant in Benue state has 4 Mta; and Okpella plant in Edo state has 3 Mta.