Dangote Cement dismisses price hike fears

Dangote Cement Plc has dismissed fears in some quarters that the recent upward review of the quality standard of cement by the Standards Organisation of Nigeria (SON) would lead to price increase.

The management of Dangote Cement allayed the fears of the consumers, explaining that the upgrade of cement quality and the new classification of grades would not lead to a hike in prices.

Devakumar Edwin, group managing director of Dangote Cement, said in Lagos at the weekend that those making such claims were doing so to blackmail the regulatory authorities into backing down on the new quality standard.

He explained in an interview with journalists that for any patriotic manufacturer with consumer interest at heart, there is no relationship between the new standard review and the price of the product 3except for profiteering.
To buttress his point, Edwin noted that his company had been producing the 42.5 cement grade for the past eight years at its Obajana plant and at the Ibese plant for about three years at the same with price of the lower grade of 32.5 produced by some other competitors.
According to him, the switching over to a higher quality of cement shouldn’t be a difficult process that would necessitate increase in price of the product.
He added that his company had even gone further to start producing the 52.5 grade of cement and that it would be uncharitable for anyone to claim that the new standard would lead to price hikes.
Edwin then pledged that much as his company would continue to cooperate with government and authorities in the regulation of the cement industry, it would ensure the price is not hijacked by profiteers.