BusinessDay

Dangote moves to make Ogun largest cement producer with new 6mtpa plant

…boosts Nigeria's capacity to export cement, earn forex

Dangote Industries Limited, a parent body to Dangote Cement Plc, has signed an agreement with China Sinoma International Engineering to build a six million tons per annum cement (6mtpa) plant in Itori, Ewekoro local government area of Ogun state.

The agreement was signed by Aliko Dangote, the Chairman of Dangote Cement Plc, together with Devakumar Edwin, the Group Executive Director, Strategy, Capital Projects and Portfolio Development of Dangote Industries Limited,  while China Sinoma Engineering was represented by Yin Zhisong, Group President and Liu Renyue, the company’s Chairman.

The signing of agreement to establish a new cement plant at Itori, less than 20km to the existing Dangote Cement plant in Ibese in Egbado North local government area, will bring the status of Ogun state as the largest cement producer in the country.

Ogun state was the first and largest cement producer during the time of the defunct West African Portland Cement Company (WAPCO) which started cement production in Ewekoro in 1959, until the entrance of Dangote Industries Limited into cement business, which made Obajana cement plant and Kogi state, to replace Ogun state as largest cement producer in the country then.

Speaking at the signing of cement plant construction and operations agreement, Aliko Dangote said the new integrated cement plant at completion would 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.

Dangote boasted that the Itori Cement Plant would also increase Nigeria’s capacity to export cement, thereby enabling more diversification and foreign exchange inflows to the economy.

He added that the project is expected to develop the domestic economy through creation of thousands of indirect and direct jobs and drive economic development in the Itori axis of the state and Ogun state in general

Ancillary businesses, he stated would be drawn to the axis as merchants and service providers will be seeking to take advantage of the location of the cement plant to provide goods and services to staff, contractors and other stakeholders.

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Dangote added that constructing the new cement plant is in line with Dangote Group’s vision of producing locally goods that were formally imported despite the abundance of raw materials for local production of such goods.

He however described China Sinoma Engineering as a strategic partner who has been instrumental to the success of key projects in Dangote 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”, Dangote said.

Yin Zhisong, Group President of China Sinoma Engineering, expressed satisfaction with the commitment and determination of the 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 submitted.

The new Itori cement plant is expected to have two Lines x 6,000 TPD Clinker Production with an installed daily total capacity of 12,000 TPD of Clinker production and will 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 green field project in Nigeria, the rest are Obajana plant in Kogi state, Ibese plant in Ogun state and Okpella plant in Edo state.

Dangote Cement is Africa’s leading cement producer with 51.6Mta production capacity across Africa with Nigeria accounting for 35.25Mta.

Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta; Gboko plant in Benue state has 4Mta; and Okpella plant in Edo state has 3Mta.

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