Displaying items by tag: Dangote Cement
Nigeria: Dangote Cement has rolled out over 150 new trucks to ease the distribution and availability of cement across the country. The move also aims to help distributors service their customers, deliver products in a timely manner and also take distributors and businesses 'to the next level.'
The Group Chief Marketing Officer, Oare Ojeikere, explained that the trucks would be at no cost to distributors and that all that was required was for the distributors to reach a certain volume of sales in three years.
"This scheme is about empowering our partners and ensuring they have what they require to get their products to their customers. Currently, the exchange rate has more or less ballooned out of proportion, making it increasingly difficult for people to invest in new trucks. Our business is powered by the ability to get cement to the retailers and the end-users," said Ojeikere.
He pointed out that in the past nine months, the group has embarked on different initiatives to improve the profitability of its partners, noting that its partners who drove growth, bought more and were also very aggressive in distribution, were rewarded for their diligence. "We want to assure our partners that those who continue to drive growth will continuously get rewarded for their efforts. We have also made cement more affordable because our per capita cement consumption and the huge housing deficit of over 18 million, we believe that if we are able to bring down the price of cement, we can drive much greater velocity in the amount of cement consumed in the country," said Ojeikere.
2015 in cement
16 December 2015Here are the major stories from the cement industry in 2015 as the year draws to a close. Remember this is just one view of the year's events. If you think we've missed anything important let us know via LinkedIn, Twitter or This email address is being protected from spambots. You need JavaScript enabled to view it..
Will the year of the mega-mergers pay off?
2015 showed a global cement industry that was consolidating. Amongst the multinational producers Lafarge and Holcim finished their merger and HeidelbergCement announced that it was buying Italcementi. Yet alongside this international trend the large Chinese cement producers, who represent over a quarter of the world's production capacity, have continued their own-government-favoured consolidation. The on-going boardroom scuffles at Shanshui have been a lively example of this.
Where this will leave the cement industry as a whole in 2016 is uncertain but mergers and consolidation are no 'magic bullet' for difficult market conditions. After the fanfare subsided from the launch of LafargeHolcim the first quarterly report emerged in late November 2015 reporting falling net sales, net volumes and profit markers.
BRICing it – growth stalls in Brazil, Russia, India and China
The economies of the BRIC nations – Brazil, Russia, India and China – have all suffered in 2015. Brazil and Russia are enduring recessions. Growth in China and India is slowing down. All of this has a knock on in their respective construction sectors.
Over in China, we report today that production capacity utilisation is estimated to be 65% and that cement companies lost US$2.63bn in the first nine months of 2015. The same source says that at least 500Mt/yr of production capacity needs to be eliminated. That represents nearly a third of Chinese total production capacity or about an eighth of global cement production capacity.
Multinationals African plans accelerate
One consequence of all these international mergers is the transformation of the situation in Africa. Suddenly LafargeHolcim has become the biggest cement producer on the continent, followed by HeidelbergCement, Dangote and PPC. Africa becomes the big hope for the multinationals as established markets continues to flounder and growth in Asian and South American markets slackens. Perversely though, should African development growth slow it may cast a poor light on the mega-mergers of 2015 in the coming years.
Dangote Cement is growing fast and it may overtake HeidlebergCement soon as the second largest cement producer in Africa. Yet it may not be plain sailing for the Nigerian company. As we report today, sources in Gambia say that Dangote's plans to open a cement plant are on hold in part to protect its domestic suppliers.
The Gambian government has denied a licence to Dangote to open a cement plant. Dangote has built its empire in recent years by forcing out cement importers from Nigeria. As it expands in other countries in Africa it may now be facing a backlash to playing the nationalist card at home as other countries too desire 'self-sufficiency' in cement production.
Iran shakes off the sanctions
In July 2015 Iran and the P5+1 countries agreed to lift trade sanctions from Iran. The implications for the local cement industry are immense given that the country was the joint-fourth largest producer in 2014, based on United States Geological Survey data. Remove the sanctions and, in theory, the local economy should boom leading to plenty of construction activity. Notably, at the launch of LafargeHolcim the new CEO Eric Olsen was asked for the new group's position on Iran. It didn't have one but this will change.
China expands along the Silk Road
China's cement industry may be suffering at home but it has been steadily expanding in Central Asia. Notably Huaxin Cement has plants in Kazakhstan and Tajikistan and it has new projects in the pipeline. Business may be down at home but steady advancement abroad may offer the Chinese cement industry the lifeline it needs.
Cop out at COP21?
And finally... The 2015 Paris Climate Conference announced a diplomatic coup d'etat in December 2015. However, it apparently forgot to include any binding targets. The Cement Sustainability Initiative (CSI) pre-empted the decision by announced its aim to reduce CO2 emissions by clinker producers by 20 - 25% by 2030... Provided the entire cement industry follows its lead. Cement plants burning vast swathes of dirty fossil fuels may not have to worry quite yet.
For more a more detailed look at trends in the cement industry check out the Global Cement Top 100 Report in the December 2015 issue of Global Cement Magazine.
Global Cement Weekly will return on 6 January 2016. Enjoy the holidays if you have them.
Dangote to spend US$450m on cement plant expansion in Ethiopia
19 November 2015Ethiopia: Dangote Cement is to invest US$450m to double its current production capacity to 5Mt/yr at its Oromia Plant. The Nigerian cement producer has already received a 36ha plot of land from Oromia State, near the plant's site in Mugher, Adebern Wereda.
The company requested the land from Oromia Investment Commission in September 2015. Now it is processing right of way issues at Wereda level. The new plant will employ 1300 people when it is completed, according to All Africa. The company also intends to open a bag factory to supply packaging for Dangote and others.
Ethiopia is estimated to have a cement production capacity of 15.1Mt/yr yet actual production is only 10Mt/yr. Cement production capacity is expected to reach 27Mt/yr by the end of country's second Growth and Transformation Plan.
US$1.2bn Dangote Cement projects licensed
28 October 2015Zimbabwe: The Zimbabwe Investment Authority (ZIA) has issued Dangote Group with licences for three projects worth US$1.2bn, paving way for Aliko Dangote to start implementing business deals agreed with Government earlier in 2015. The three projects are a cement plant, a coal mining venture and an energy or power plant using coal off-take production.
Zimbabwe Investment Authority chairperson Nigel Chanakira said that construction of a cement plant would likely reduce the price of the commodity. "Without any shadow of doubt, from all indications this will be the largest plant, so it speaks to the dynamics in terms of competitive pricing in cement and the construction industry," said Chanakira. "Generally, housing building costs must come down."
He said that the ZIA wanted all licensed investors to start work immediately. "What we need now are very strong follow-ups to help anybody who has been licensed to make sure those licences are used and that they translate into real investment," said Chanakira. "In the past, we have been criticised that we approve projects and then people do not come. If you look at the trend, even in 2014, we have had the largest inflow in terms of foreign direct investment since 2006. In 2006 we had US$444m, in 2014 we reached US$545m. In 2015, the jury is still out. The year has not ended, but we are hoping that our numbers will go up to at least US$3bn."
Dangote Cement’s African projects drives revenue to US$1.83bn
27 October 2015Nigeria: Aggressive African expansion projects by Dangote Cement have started to yield positive gains as for the first nine months of 2015 as its turnover grew by 17.8% year-on-year to US$1.83bn. During the period, Dangote Cement exported 3.7Mt of cement to neighbouring countries.
Dangote Cement in Tanzania coal deal
20 October 2015Tanzania: Dangote Cement has signed two agreements that will enable its US$600m cement plant in Tanzania to generate 150MW from coal.
One agreement is with Tancoal. Dangote Cement has also signed a coal prospecting licence for a site in Mbinga. However, the plant will first run on diesel until it is able to generate its own electricity from coal.
The deals ends a year-long dispute between the government and the cement plant after Tanesco failed to provide electricity. The plant was considering importing coal from South Africa, which was a cheaper option than buying it from the area.
The cement plant is expected to reduce cement prices by 50% once production commences in early 2016. It will take advantage of the growing construction industry, which contributes 12.5% to the country's GDP. It will offer more than 1500 direct jobs and 9000 indirectly.
Dangote Cement launches US$600m Tanzanian cement plant
13 October 2015Tanzania: With its cement plants across Africa undergoing expansion and new investments in Asia, Dangote Cement has unveiled plans to attain a production capacity of 81Mt/yr before 2020, as it commissions its US$600m plant in Tanzania.
The President of Dangote Group, Aliko Dangote, said that the company is currently consolidating its cement businesses across Africa to reap the benefits of scale, adding that its operational offshore cement plants have started to make substantial contributions to group revenue. Dangote added that the pan-African drive will aid the company's plan to do a listing in London and Johannesburg in the near future, with an intention to consolidate the cement assets into one company that will have the scale and resources to compete globally.
Speaking at the commissioning of Tanzanian cement plant in Mtwara, Dangote explained the choice of Tanzania for investment, stating that the existing supply gap has been inadequate in meeting local demand, while noting the need to boost export supply in the eastern Africa regional bloc.
"The construction sector is a major emerging component of the Tanzanian economy that has been receiving the attention of investors. This makes it an ideal market for cement production. The existing cement manufacturers have historically been unable to satisfy local demand, which has been filled by imports. As essential economy-driven infrastructure continues to be built to improve electricity supply and the transport network, additional demand for cement can be expected. The Dangote Cement investment will certainly contribute to Tanzania's on-going story of infrastructure development, job creation and broad economic development. Our strategy is to invest in countries that offer investors attractive returns on investment as well as provide them with an enabling environment to operate. It is our sincere belief that our US$600m investment in Tanzania will further speed up infrastructural development and complement the government's efforts in stimulating economic growth and creating jobs. When in full production, this plant will make Tanzania self-sufficient in cement, with a lot of cement for export to neighbouring countries," said Dangote.
Dangote Cement appoints two new regional CEOs
07 October 2015Nigeria: Dangote Cement has appointed two new Regional Chief Executive Officers (RCEOs). Arvind Pathak has been appointed as the new regional Chief Executive Officer of Nigeria and Vivek Chawla will serve as the new Regional CEO for West and Central Africa. Chawla was appointed on 17 August 2015.
Chawla has over 30 years of experience working in the cement industry. Previous to working for Dangote he was the President of Hindalco Industries, part of the Aditya Birla Group. Chawla also worked as Chief Executive Officer, East Region of ACC Limited.
Dangote to launch Tanzanian cement plant in October 2015
30 September 2015Tanzania: Nigeria's Dangote Cement is set to commission its new 3.0Mt/yr cement plant in Mtwara District on 10 October 2015. The company will also hold the ground-breaking ceremony for 25 hectares of jetty land at Mgao village in Mtwara District on the same day.
The commissioning of the new cement plant, which is part of the company's Africa expansion strategy, will be the fourth in the series after Ethiopia, Zambia and Cameroon. Cement plants due for commissioning this year are located in Senegal and South Africa, while construction works are ongoing in several other African countries.
Dangote reissues call for concrete roads
25 September 2015Nigeria: Aliko Dangote, Chairman of Dangote Cement, has repeated his plea to the Nigerian Federal Government to urgently adopt concrete roads in the country. Dangote stated that the adoption is hoped to be to the benefit of Nigerians if the government embraced the option of using concrete for roads in the country. Dangote claims that, aside from being very cheap, concrete roads are more durable with near zero maintenance cost.
"We are pushing for Nigeria to have concrete roads. It is cheaper to lay a concrete road that will last 50 years than to lay a bitumen road. It will also help in eliminating corruption, because if you go and build a bitumen road, it will have to be adequately maintained unlike a concrete road that is very durable," he commented.