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Cement: Dangote Tackles Price Hike With Enhanced Production

Source: pointblanknews.com
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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

hike.
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

weekend.
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.