Cement: Dangote Tackles Price Hike With Enhanced Production
Against the background of the skyrocketing price of cement in the market,
leading cement manufacturer, Dangote Cement Plc has released into the
market, a supply of 9 million tons of the commodity, to stem the price
President of Dangote Group, Aliko Dangote made this disclosure when the
President of Tanzania, Dr Jakaya Kikwete paid a facility visit to the
10.25 million Mtpa capacity Obajana Cement Plant in Kogi State at the
Dangote who had earlier told the Company shareholders during its 2013
Annual General Meeting that his company had not increased cement price
went ahead to publish in the dailies how much his cement is sold still
maintaining its price despite increase in cost of production input.
He reasoned that low production leading to reduced market supply as a
result either turn around maintenance of its plant or shortage of gas must
have been cashed in on by profiteers to shortchange members of the public
by deliberately hiking the price.
Said he: “the recent scarcity in cement product in Nigeria is due tto low
production between January and March due to the yearly turnaround
maintenance of the company's plants at Ibeshe and Obajana.
We have released 9million tons of cement into the market to stem the tide
of scarcity and bring down the price.
Therefore, Dangote told newsmen at Obajana that with full production
attained, his company quickly supplied about 9 million tons into the
market to flood the market and arrest the high price since he believed
that once the supplies increased and even beating demand, the price as of
necessity would come down.
The Group President and the Tanzanian President flew into Obajana at the
close of the World Economic Forum which held at the Transcorp Hilton
between May 7 and 9 in Abuja.
Dangote said the visiting Tanzanian President was at the plant to see
things himself as the company was building 3 million metric tons of cement
plant in that country.
He said the cost of the plant is $600million and that construction work
has reached 30 per cent completion. The plant when completed is expected
to be officially opened in 2015.
Speaking, President Kikweto said he took time from the meeting in Abuja to
see things himself, and he was convinced Dangote is a good business
partner his country could trust describing what he saw as 'wonderful.'
It would be recalled that only recently Kenyan Deputy Prime Minister
Wiliam Ruto visited the Obajana Plant as Dangote Cement Plc is building a
3million metric tons of cement worth $600m in Kenya.
Dangote Cement Plc has three plants in Nigeria. They are: Obajana Cement
Plant which produces about 10.25million metric tons, the Ibese plant which
produces 6million metric tons and the Gboko plant which produces about
4million metric tons.
Apart from in Tanzania and Kenya, Dangote Cement Plc is also building a
2.5million metric tons cement plant in Ethiopia and 1.5million metric tons
capacity in The Zambia, as well as import and landing facilities along the
coast of West Africa.