Dangote Cement Signs $250m Deal To Expand Production

Dangote Cement has been ramping up its cement production capacity in Nigeria, its largest market, and across Africa to take advantage of growing demand for housing and infrastructure.

Dangote Cement, Africa’s largest cement company, has signed a $250 million agreement with the China Sinoma International Engineering for the construction of a fifth cement production line in Obajana, Kogi State, according to a statement released by the Chinese company.

Dangote’s cement plant in Obajana is one of the largest cement plants in the world, with four production lines having a capacity of 12.25 million metric tonnes, according to the company’s website.

Under the agreement, Sinoma will provide a fifth production line, covering limestone mines, cement power grinding, engineering design, equipment procurement and supply, civil construction, mechanical and electrical equipment installation, commissioning, personnel training etc. The new production line will have a capacity of 6 million tonnes and the project is expected to be completed in 30 months.

Dangote Cement has been ramping up its cement production capacity in Nigeria, its largest market, and across Africa to take advantage of growing demand for housing and infrastructure. In 2015, the company signed a $4.34 billion deal with Sinoma to build cement plants in 10 African countries and Nepal.

In the 2016 financial year, Dangote Cement said revenue rose by 25 percent to N615.1 billion, while after-tax profit rose by 2.9 percent to N186.62 billion, notwithstanding Nigeria’s economic challenges, which impacted consumer spending.