• Thursday, April 25, 2024
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Dangote, Chinese firm sign deal to build 6 Mta cement plant in Ogun

Dangote Cement quotes additional series of Commercial Paper on FMDQ Exchange

Dangote Industries Limited (DIL) says it has signed an agreement with China Sinoma International Engineering to build a six million tons per annum cement plant in Itori, Ogun state.

In a statement on Wednesday, DIL said the deal was signed by Aliko Dangote, chairman of Dangote Cement while China Sinoma Engineering was represented by Yin Zhisong, its group president, and Liu Renyue, the company’s chairman.

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

He said the Itori cement plant will increase Nigeria’s cement export capacity, thereby allowing for economic diversification and foreign exchange (FX) inflows.

The billionaire said the project is expected to develop the domestic economy through the creation of thousands of indirect and direct jobs, adding that it will also drive economic development in the Itori axis.

According to Dangote ancillary businesses will be drawn to the axis — which 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 added that constructing the new cement plant was in line with Dangote Group’s vision of producing local goods that were formerly imported despite the abundance of raw materials for local production of such goods.

Dangote described Sinoma as a strategic partner who has been instrumental to the success of key projects of the group.

“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,” he said.

Zhisong, on his part, expressed satisfaction with the commitment and determination of Dangote Group in building cement plants across Africa.

“It is an honour for us to build another cement plant for Dangote Group. We are proud and happy to be on this journey with the company again,” he said.

The plant, projected to be completed in 27 months, is expected to “have two lines by 6,000 TPD clinker production with an installed daily total capacity of 12,000 TPD of clinker production”.