Displaying items by tag: Dangote Cement
Nigeria: The government of Lagos State has unveiled a new deal with Dangote Cement and Lafarge Cement WAPCO. The collaboration will help to ensure undisrupted supplies of cement products to construction firms that have been contracted to handle various infrastructure projects that are to be carried out by the state in the coming years.
Commissioner for Works and Infrastructure, Dr Obafemi Hamzat, revealed the details and explained that Governor Babatunde Fashola had engaged both Dangote and Lafarge Cement WAPCO to guarantee stable supplies. "We are looking into the use of concrete now that we have a lot of cement in the country. We have met with Dangote and Lafarge to see how they can assist us with our contractors."
Hamzat lamented the high cost of cement imports as one of the reasons responsible for the high cost of road construction and urged the Federal Government to restore railways so that they can be used as an alternative route.
Dangote talks up US$40bn LSE launch
19 June 2012Nigeria: Nigerian billionaire Aliko Dangote has announced that his cement company is aiming for a valuation of up to US$40bn on the London Stock Exchange (LSE) when it is floated in 2013. If realised, the company would be valued at several times the size of France's Lafarge.
Dangote's cement empire stretches from Senegal to South Africa, benefiting from a construction boom across one of the world's fastest growing continents. In a difficult global environment for share offerings, Dangote said he was not discouraged by the tumble in Facebook's shares since they listed in May 2012.
"Whereas the assets of Facebook were hype, we have real assets," said Dangote, setting out the market capitalisation he expected for his firm at the listing planned for late 2013. "It depends on the market, but it should be something like
US$35-40bn," said Dangote.
Despite Dangote's desire to present the company as larger than Lafarge, its revenue was in the order of 13 times lower than its French rival in 2011. Dangote highlighted, however, that the company's rapid expansion would make it considerably larger than it is now by the time of the listing, with new plants due to be completed in 13 other African countries by then. Alongside its expansion, he noted that Lafarge is in the midst of a cost-cutting programme in an effort to offset the impact of stagnation in its main markets and to cut its debt.
Cameroonian Dangote plant back on track
19 June 2012Cameroon: Construction of a US$115m cement plant by the Nigerian cement giant Dangote has restarted in Douala after resolution of a land dispute. Work on the 1.5Mt/yr facility began in September 2011 but was halted in early 2012 after the Sawa people filed an injunction against the project, complaining it violated their sacred site on the banks of the Wouri River.
"Following instructions from the Presidency of the Republic, work has resumed at the Dangote cement factory," said Joseph Beti Assomo, the governor of the region under which Douala falls. "Let me seize this opportunity to inform you that the mix-ups surrounding the site of the Dangote project have been entirely dissipated to enable resumption of work."
Obajana line 3 launched
12 June 2012Nigeria: The cement sub-sector of the Nigerian economy received a further boost on 11 June 2012 when President Goodluck Jonathan inaugurated the new 5.25Mt/yr Dangote Cement Obajana Plant Line 3. The plant launch is part of the nation's drive to 'free itself' from foreign cement imports.
With the commissioning of the new line, the production capacity of the Obajana Plant will be raised to 10.25Mt/yr. In 2015 a fourth line will be completed, giving a combined production capacity of 13.25Mt/yr. This would make it the largest cement plant in the global cement industry.
The line 3 launch follows the commissioning of Dangote's 6Mt/yr Ibese plant. The company aims to lead the way in the Nigerian cement market and have sufficient material left over for export.
With the continuous expansion of the existing plants in the country and its operations across 14 other African countries, Dangote Cement will remain one of the largest producers in Africa and the world. The company said that the inauguration marked a milestone not only for the company but also for Nigeria, pointing out that the Obajana project will make Dangote Cement the 'power house of cement in Africa.'
Group President Alhaji Aliko Dangote has previously said that Dangote Cement would soon start to convert its import terminals for export terminals in readiness for exportation of its excess capacity to neighbouring countries.
Dangote 6Mt Calabar plant ready by July 2012
30 May 2012Nigeria: Dangote Cement's new 6Mt/yr Calabar plant, in the Cross-River State, will be ready by the end of July 2012. Chairman Aliko Dangote made the announcement at the company's annual general meeting in Lagos.
According to Dangote the Calabar plant is almost completed, with a strategic location intended to supply both local consumers and those in Central African states like Cameroon and Gabon. Together with the planned expansion of the Ibese plant by 3Mt/yr, the June 2011 commissioning of the Obajana Plant and other operations in 14 other African countries, Dangote Cement aims to reach a capacity of 60Mt/yr by 2015. Of this total, 55% is intended to local consumption and 45% is intended for export to other sub-Saharan African countries.
Dangote Cement posts US$200m profit for Q1
16 May 2012Nigeria: Dangote Cement has reported a pre-tax profit of US$200m for the first quarter of 2012, an increase of 8.9% compared to the US$173m recorded for the same period in 2011.
Analysis of the Nigerian producer's unaudited financial results indicated that its operating profits rose by 13.7% to US$200m reflecting the higher proportion of locally manufactured cement compared to US$176m in 2011. Gross profit for the group was US$231m for the quarter compared to US$182m in 2011. The group achieved strong growth in revenue and profits in the first quarter, with revenues rising from US$345m to US$405m, an increase of 17.6%.
Dangote Cement targets London for listing
02 April 2012UK: Aliko Dangote plans to list his US$11bn cement business, Dangote Cement, on the London Stock Exchange in 2013. Dangote is cited by the Financial Times as saying he intends to free-float a 20% stake in Dangote Cement to finance its rapid expansion.
"We want to list in London next year. By then the upside to our business will be much bigger than today," Dangote is quoted as saying.
Morgan Stanley and JPMorgan have been appointed as co-leads for the London share issue. Dangote is cited as saying the company was on track to meet the corporate governance requirements for a premium listing, and that he would give up his current role as chairman.
Chris Searle, Partner at BDO LLP commented, "If this IPO goes ahead, it will give London a significant credential that will hopefully attract other African companies at a time when Africa is one of the fastest growing regions in the world and will further cement London's status as the most international stock market in the world."
Searle added that the decision reflects a realisation by Dangote that it must improve its corporate governance. He also expressed surprise that the free float was 20%. Under current rules, the UK Listing Authority has set a minimum free float requirement of 25% for companies seeking to obtain a listing on the London Stock Exchange.
Dangote signs up for US$35m plant in Liberia
21 March 2012Liberia: Dangote Cement Liberia, a subsidiary of the Nigerian conglomerate Dangote, has officially signed up for a US$35m cement plant in Liberia.
Speaking during the signing ceremony held in Monrovia at the head office of the National Port Authority (NPA) on Bushrod Island, the president of Dangote, Alhija Aliko Dangote, disclosed that his company will employ hundreds of Liberians and other nationals. Operation is expected to commence by the end of April 2012. Signing on behalf of the Liberian Government, the Managing Director of the NPA, Madam Matilda Wokie Parker lauded the initiatives being applied by the company to invest the economy.
The opening of a new cement factory in Liberia will bring the total number of cement plants to two. The existing plant, the Liberia Cement Corporation (Cemenco), currently employs 63 workers.
Dangote build stalls in Cameroon
16 March 2012Cameroon: Construction of a US$109m Dangote cement plant in Duoala has been halted following an order from the Douala City Council (DCC), raising fears that the 18-month timeline for the construction of the plant may not be met.
DCC delegate Fritz Ntone Ntone halted work on the site following complaints from Ngondo cultural officials. He explained that part of the site allocated for the plant belongs to the DCC and will be used for the construction of an urban park. He added that much of the site is traditionally used as land for the Ngondo cultural celebrations. During the Ngondo General Assembly on 10 March 2012 Sawa Chiefs resolved not to release the land for any reason.
In September 2011 an agreement was signed between the Cameroonian government and Dangote, which authorised the construction of a US$109m cement plant in Douala with a capacity of 1Mt/yr along the shorelines of the River Wouri. The disputed land was contracted from the government through a lease of 30 years. On 13 March 2012 a Dangote delegation from Nigeria announced that the company was ready to renegotiate in order to keep the venture going.
Demand for cement in Cameroon is currently rising rapidly, increasing by 8% in 2011. According to government data the country imported at least 0.5Mt in 2010 but demand is estimated at 4Mt/yr. In addition to Dangote two companies from Korea have also signed investment agreements with the government.
Work to step up at Zambian Dangote plant
15 February 2012Zambia: Work on the construction of a new US$500m Dangote Cement plant in the Masaiti District of Zambia is progressing well and will be completed on schedule, according to company logistics manager Kampew Nundwe. The 1.5Mt/yr plant will be the largest in the country when it reaches its full capacity in 2013.
The plant is expected to create more than 1500 direct and indirect jobs during the construction and operational phases. "At the construction stage, 500 casual workers will be employed and up to 1000 people will be employed when full operations start," said Nundwe.
Nundwe said that the Chinese contractor working on the project has completed construction of temporary offices would soon be moving to the main construction site, with 80 trucks carrying materials from Germany and China scheduled to arrive from 15 February 2012 onwards.