07:05 pm
26 October 2016

China signs big deal with Africa’s richest man, Aliko Dangote

Dangote Cement yesterday signed contracts with Chinese firm, Sinoma International to build cement factories in 13 countries – 12 in Africa and Nepal, an Asian country.

On completion, 25 million tonnes of cement will be generated annually in what is a revolution the cement sub sector. This will bring the capacity of Dangote cement to 70 million tonnes per annum.

The $4.34bilion deal was sealed in the presence of ambassadors of some of the beneficiary countries.

President of Dangote Group, Alhaji Aliko Dangote, signed for his group while the Chief Executive Officer, Sinoma, Mr. Shen Jun, signed for his company.

The Chinese firm will execute the construction projects with equipment sourced from Germany.

Aside Nigeria, whose two new plants at Itori, Ogun State with a combined capacity for six million tonnes are already under construction, a three million tonnes factory will be built in Nepal.

The African countries that will have the integrated plants are: Ethiopia with 2.50m tonnes, Kenya with two plants and a combined capacity of three million tonnes, Zambia 1.5om tones, Senegal with 1.50m tonnes and Niger with 1.50mtonnes.

The 1.50m tonne plants to be built in Mali, Cameroon, Cote d’Ivoire and Ghana are grinding units.

Dangote said the a 1.5m tonnes plant in Douala, Cameroon will be inaugurated today.

Some of the countries to host the new plants already have Dangote plants.

All the new plants are to be completed within the next 30 months, Mr. Dangote promised, adding that on completion, the capacity of the combined factories will move up to 70 milion tonnes per annum.

“But our goal is to attain 100million tonnes by 2020,” Dangote declared yesterday.

According to him, the plants are being built because of the need requirement of the countries.

He gave an example of Niger Republic which currently imports all its cement requirements despite having in abundance all the raw materials needed to manufacture the product.

Dangote said: “We want to make Africa self-sufficient in cement production and not to become a dumping ground. We are very focused on what we are doing.”

Dangote hailed the Nigerian government for providing the enabling environment for the business to thrive, adding that his company and Sinoma had been together for eight years “in spite of the economic recession in the world at this time.”

He said Nigeria currently has the capacity to export 10m tonnes of cement, adding that this will go higher when the new plants go on stream.

Jun promised that his company will provide excellent technology in the construction adding that it had completed 16 projects with Dangote.

He vowed that the high standard which his company is known for will be kept in the execution of the projects being “a leading company in cement production worldwide.”

With the Dangote CEO at the ceremony are Group Executive Director of Dangote Group, Mr. Devakumar Edwin and the Chief Operating Officer, Mr Olakunle Alake. Three other officials accompanied Mr Jun on behalf of Sinoma.