Dangote begins work on Okpella, Itori cement plants

Dangote Cement

Dangote Cement Plc says it has commenced the construction of cement plants in Okpella, Edo State, and Itori, Ogun State.

The new plants are expected to add nine million metric tonnes per annum to the company’s current local cement output of 29.25 million tonnes.

According to the company, Okpella is a three million per annum plant, while the Itori plant will produce six million tonnes of cement yearly.

The Group Managing Director, Dangote Cement Plc, Mr. Devakumar Edwin, said both plants were expected to come on stream within the next three years, adding that the move was to help expand the company’s manufacturing plants, thereby reducing the transportation cost component of its operations.

“The new investments will further lower the cost of production, bring about future reductuon of the price of cement and also generate employment opportunities for youths of the host communities,” he said.

The Group Managing Director, Cement, Dangote Industries Limited, Mr. Onne Vander Weijde, said the demand for cement was still high considering the level of population growth in the country.

He noted that Nigeria’s per capita consumption of cement, which is just above 100kg, is relatively low, indicating a massive growth potential.

He added, “There has always been a surplus in demand because cement was not readily available, but ours is available and the prices are affordable.

“Consumer prices have fallen by 35 per cent in naira terms, but if you take it in dollar terms and relate it with today’s parallel market rates, you will realise that the price of the product has gone down in Nigeria, and in some cases below the prevailing average global price.This, in itself, is a huge driver for increasing the per capita consumption.”

He added that with the capacity of the plants in the country, the company could supply the entire western and central Africa regions.