Dangote Cement ramps up African operations


October 23, 2017 | 10:59 am
  |     |     |   Start Conversation
Dangote Cement, one of the biggest cement manufacturers in Africa, has driven up plants’ volumes in the continent by 7.5 percent to 7.0mta in the past six months with the coming on stream of its 1.5mta integrated cement plant in Mfila, Republic of Congo, even as it appoints an acting chief executive for the operations.
The company’s unaudited results for the nine months ended September 30, 2017, indicate that the plant that began operations last month has almost doubled the size of the cement sector in the country. The Congo plant brings to 10 the number of Dangote Cement plants across Africa.
Strong volumes were also recorded in Senegal, Ethiopia and Cameroon. In Ethiopia, it increased sales by 16.8 percent to nearly 1.7mta in the first nine months of 2017, representing capacity utilisation of approximately 88 percent. The cement plant in Pout, Senegal, sold 1.0mta of cement in the period under review, up by 21.7 percent on the comparable period of 2016. This represents almost 89 percent capacity utilisation at the factory.
In the nine months under review, the 1.5mta clinker grinding facility in Douala, Cameroon, sold approximately 938kt of cement, indicating an increase of 16.4 percent on the 806kt sold during the same period in 2016, according to statement by the company.
“Our Pan-African operations are performing strongly with excellent sales growth in Cameroon, Ethiopia and Senegal. We are consolidating our success across Africa and have just commissioned our 1.5Mta factory in Congo, the tenth country in which we have established operations,” said Onne van der Weijde, CEO, Dangote Cement, in comments about the company’s results.
Weijde further said, “In our key operations in Nigeria we have significantly improved our fuel mix and this has helped increase margins across the Group. It is especially good for Nigeria because most of the coal we are using is mined in our own country.”
Dangote Cement, which controls up to 65 percent of the Nigerian cement market, attributes the increase in sales to a number of factors ranging from strong brand recognition, increased point of sales branding, improvements in sales and marketing strategies to higher visibility through trade shows.
The Board of the cement company also announced changes in the leadership of the company with Onne Van der Weijde, stepping down as the company’s CEO at the end of 2017 having completed three years in this position, in order to return to his home country, The Netherlands. He will be appointed as a Non-Executive Director of Dangote Cement PLC, with effect from 1st January 2018.
The Board expressed appreciation to Onne for his contribution during his period as CEO in the last three years, in which he managed an important growth phase in the company’s development.


October 23, 2017 | 10:59 am
  |     |     |   Start Conversation

Big Read |  


What Nigeria must do before signing AfCFTA

Nigeria’s President Muhammadu Buhari last Wednesday gave a hint that he would sign the African Continental Free Trade Area (AfCFTA)...

Top 100 (300 x250)

MTN banner 2


Newsletter Fixed income