Dangote Signs $2bn Chinese Bank Loan For Two Cement Plants | Independent Newspapers Limited
Newsletter subscribe

News

Dangote Signs $2bn Chinese Bank Loan For Two Cement Plants

dangote
Posted: Apr 13, 2016 at 3:00 am   /   by   /   comments (3)

 

Dangote Group, the company owned by Africa’s richest man, Aliko Dangote, signed a deal on Tuesday for a $2 billion loan from the Industrial Commercial Bank of China Ltd for two cement plants, he told Reuters.

“The interest rate is okay, quite favourable with me,” Dangote said, without elaborating. “It’s for my two cement companies that we are establishing in Nigeria.”

The deal included China Export & Credit Insurance Corporation (Sinosure).

In an ambitious expansion drive, Africa’s leading cement manufacturer, Dangote Cement plc, at the weekend held a ground breaking in Okpella, Edo State, to signal the commencement of the construction of a $1 billion investment in cement plants with potentials for 6,000 new jobs.

The new cement plants are expected to further increase the $3 billion the country has been saving from import substitution in cement yearly.

The new 6 million metric tons per annum capacity cement plant is coming on the heels of similar arrangement for another 6 million mtpa cement plant in Itori, in Ogun State where the company is currently running a 12 million mtpa cement plants at Ibese, in Yewa division of the state.

By this investment, Dangote’s production capacity will go up further to 41m mtpa, in Nigeria alone.

Impressed at the continuous investments in cement production despite having met local demands, the Federal Government said the gains of the backward integration in the cement sector of the construction industry, as championed by the Dangote Group is saving the nation huge billions of foreign exchange.

Dr. Kayode Fayemi, the Minister for Solid Mineral Development, and his counterpart in Trade and Investments, Dr. Okechukwu Enelamah, said government is pleased with the exploits of the Dangote cement in ensuring that the nation freed itself from the shackles of endless importation and becoming net exporter.

This development, they stated, tallied with the change agenda of the present government that all hands must be on deck to substitute importation with local production and consume only products that are produced locally.

They stated that the volatility in the international oil market and the excessive dependent on importation have both combined to put pressure on the naira, adding that the government is putting in place strategies to free the naira from such pressure.

Dangote Cement is a fully integrated quarry-to-customer producer with production capacity of 29.25mta in Nigeria. The Obajana plant in Kogi State is the largest in Africa with 13.25mta of capacity across four lines. The Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12mtpa. The Gboko plant in Benue State has 4mta.

In addition, the company is investing several billions of dollars to build manufacturing plants and import/grinding terminals across Africa. It has operations in Senegal (1.5mta), South Africa (2.7mta), Cameroon (1.5mta), Ghana (1mta import facility), Ethiopia (2.5mta) and Zambia (1.5mta). It is also building plants in Tanzania (3mta), Republic of Congo (1.5mta), Kenya (TBC), Nepal (TBC) and Zimbabwe (TBC). It said it plans to build import or grinding facilities in Sierra Leone (0.7mta), Ghana (1.5mta), Cote D’Ivoire (1.5mta), Liberia (0.7mta).

 

 

Comments (3)

  • Apr 13, 2016 at 5:46 am kabiru auwalu danasabe nitel

    god will help nigeria

Comments are closed.