Nigeria’s earnings on cement export to rise, as Dangote signs deal with Chinese firm
Dangote Industries Limited (DIL) and China Sinoma International Engineering have signed an agreement to build a cement plant in Itori, Ogun State.
According to a statement sent to Ripples Nigeria, the cement plant will have a six million tons per annum output upon completion in 2025.
Aliko Dangote, the founder of the cement manufacturer, and Chairman of China Sinoma, Liu Renyue, signed the agreement on behalf of their companies on Wednesday.
Others present during the signing ceremony were Group Executive Director, Strategy, Capital Projects & Portfolio Development, DIL, Devakumar Edwin, China Sinoma’s Group President, Yin Zhisong.
It was gathered that the plant would increase the country’s earnings from cement export, as the plant would raise Dangote Cement’s production capacity in Nigeria to 41.25 million tons per annum and total African capacity to 57.6 million tons per annum.
Speaking on the benefit of the agreement, Dangote said the “Itori Cement Plant will also increase Nigeria’s capacity to export cement, thereby enabling more diversification and foreign exchange inflows for the economy”.
According to Dangote, the project is further expected to develop the domestic economy through creation of thousands of indirect and direct jobs and drive economic development in the Itori axis. Ancillary businesses, he stated will be drawn to the axis, who will be seeking to take advantage of the location of the cement plant to provide goods and services to staff, contractors and other stakeholders.
Read also:Dangote cement gets new GMD as Puchercos retires after three years
The statement reads further, “the project is further expected to develop the domestic economy through creation of thousands of indirect and direct jobs and drive economic development in the Itori axis.” Adding that ancillary businesses “will be drawn to the axis, who will be seeking to take advantage of the location of the cement plant to provide goods and services to staff, contractors and other stakeholders.”
The Itori plant will be a green field project, and the facility will have its own captive power plant to generate electric power for use by cement kilns and other production processes.
The Itori Cement Plant will be Dangote Cement’s fourth cement plant constructed as a green field project in Nigeria, the rest are Obajana, Ibese and Okpella Plants.
Dangote Cement is Africa’s leading cement producer with 51.6Mta production capacity across Africa with Nigeria accounting for 35.25Mta.
Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta; Gboko plant in Benue state has 4Mta; and Okpella plant in Edo state has 3Mta.
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