Dangote to spend $7.5 billion on expansion

Billionaire industrialist, Aliko Dangote said on Thursday his conglomerate needed to spend $7.5 billion in the next four years to expand operations in a range of sectors.

“We are going into something big. We are going into mining, petrochemicals, cement and infrastructure. We need to spend $7.5 billion in the next four years, so definitely we need a lot of concentration,” he told a Reuters on the sidelines of the World Economic Forum in Addis Ababa.

Mr Dangote said this changing focus was one of the reasons he was looking for a partnership for his flour business, Dangote Flour Mills, with Tiger Brands, South Africa’s biggest consumer foods maker.

“We are actually trying to have a partnership between us and Tiger Brands,” he said. “We believe they are much better than us in terms of the retail business.”

Banking and company sources told Reuters that Tiger Brands was bidding for an 80 percent stake in Dangote Flour Mills, which makes pasta and flour in Africa’s most populous country.

Buying all or part of Dangote Flour Mills would give the maker of bread, breakfast cereal and energy drinks a substantial presence in the Nigerian food market. Dangote said a deal was about partnership, not offloading assets.

“We are not selling. If it was to raise money, we would have … sold the whole business to them. But no. What we are trying to do is actually to have them so that we can now enjoy the downstream of the business,” he said.

Nigeria’s population of more than 160 million is a massive potential retail market, although corruption and the government’s focus on oil exports still deter many investors.

Dangote said he hoped to list his $11 billion cement company on the London stock exchange by the third quarter of 2013. Dangote Cement trades on the Nigerian stock exchange and is West Africa’s largest listed company.

REUTERS

Dangote to open US$35M cement factory in Liberia

The President and Chief Executive Officer of Dangote Cement Nigeria PLC, Aliko Dangote on Friday his company is planning to infuse over US$35 million dollar into the Dangote Cement Liberia limited a subsidiary of the Dangote Cement PLC of Nigeria.

Speaking during the signing of the memorandum of understanding between the Liberia government and the company, held at the head office of the National Port Authority, in Monrovia on Friday, the Mr Dangote spoke highly of the interest his company has in helping to robustly boost the growth of the Liberian economy.

He also said that his company which is expected to start operation in the next six weeks will employ hundreds of Liberians, and other nationals.

He said that the parent company of Dangote Cement Liberia (Limited), Dangote Cement PLC Nigeria which was established in 1978 has to its credit over US$15 billion investment capital, and therefore, promised to infuse similar assets into the Liberian economy.

Signing on behalf of the Liberian Government, the Managing Director of the National Port Authority (NPA), Matilda Wokie Parker welcomed Mr Dangote and his delegation to Liberia, and lauded the initiatives being applied by his company to come to Liberia and invest.

Speaking to reporters immediately after the signing ceremony, Mrs Parker said the NPA will play host to the operation of the new cement factory, noting, “We are glad to have this multimillion dollar company to begin operation here at the NPA.”

After the signing ceremony, Mr Dangote and his 5-man delegation including the Group Managing Director, Knurt Ulvmoen visited the Liberian President, Ellen Johnson Sirleaf at the Ministry of Foreign Affairs.

The opening of a new cement factory in Liberia will bring to two the number of cement factories in Liberia. CEMENCO which is currently enjoying monopoly in the sector has been around for over fifty years.

Dangote’s Land dispute in Cameroon to be resolved soon – Cameroon official

Dangote Cement opens new $1 billion plant
A land dispute that has halted construction of Dangote Group’s $115 million cement plant in Cameroon will be resolved amicably and the project completed on time, a government official said on Wednesday.

Dangote started work on the 1.5 million tonnes-per-year plant in the financial capital Douala in September with an eye to finishing the project within 18 months, but construction was halted after residents filed an injunction arguing the land belonged to the ethnic Sawa people.

“The Prime Minister and the government are very keen that the project should go on as planned, given the growing demand for cement in the country,” an aide to Prime Minister Philemon Yang told Reuters, asking not to be named.

“So the Prime Minister has already held a meeting with the Sawa chiefs and will be sending an official delegation of very senior government personalities to the city one of these days so that the problem can be solved amicably and construction work on the plant site (is) completed as scheduled,” he said.

“We cannot afford to miss this opportunity,” he said, adding talks would likely be held this week or early next week.

The company had issued a statement in the national register saying it was ready to renegotiate its accord and had already shipped in heavy equipment from Germany.

Dangote, also facing opposition from residents fearing pollution, said it was planning to use state-of-the-art environmental technology on the site, held on a 30-year renewable lease from the government.

Cameroon currently has only one cement company, CIMENCAM, with annual output of about 1 million tonnes.

But the Ministry of Economy, Planning and Regional Development says annual demand in the country is about 4 million tonnes, growing at about 8 percent per year.

Dangote Cement opens new $1 billion plant

Nigeria’s biggest listed company, Dangote Cement, opened a $1 billion cement plant on Thursday, raising its production capacity in Nigeria by more than 40 percent.

Dangote Cement opens new $1 billion plant

The new plant is situated in Ibese, Ogun State in southeast Nigeria, just outside the commercial hub Lagos. It will produce 6 million metric tonnes of cement per annum (mtpa), which along with Dangote Cement’s two other plants will take total production to 20.25 mtpa.

“We are working towards making the company one of the eight biggest producers of cement in the world,” Dangote’s billionaire owner Aliko Dangote said at the plant opening.

“With the commissioning of the Ibese plant, Nigeria has been transformed from major importer of cement to self-sufficient in production and export.”

Mr Dangote said in the next two years the company’s Obajana plant, in Kogi state, would have its capacity upgraded to 15 mtpa from 10.25 mtpa currently, which would make it the world’s biggest cement plant.

Speaking at the commissioning of the plant, the Ogun state governor, Ibikunle Amosun commended the company for the choice of the state as location for the cement plant. He pleaded with the management of the company to assist the government in fixing the Lagos-Ibadan express road which is in a deplorable state.

President Goodluck Jonathan, who commissioned the plant expressed satisfaction with the expansion of Dangote Cement plants saying that soon Nigeria “will not only be exporter of crude oil, but will be exporter of cement.”

Mr Jonathan hailed the billionaire owner of the plant and said that it was because of Mr Dangote’s contributions to the economy that justified the conferment of Grand Commander of the Order of the Niger (GCON) award on him, an award that hitherto have been conferred on Vice President.

The President said that the plant which will directly employ over 7,000 workers will help to reduce the rate of employment in the country and reduce the cost of housing in Nigeria.

He said for the country to achieve its aim of joining the top 20 economy in the world by the year 2020 “we need to multiply people like Dangote”