By Peter OBIORA investadvocate

Dec 17 2010 16.01 GMT

Lagos (INVESTADVOCATE)-The Dangote Group is set to make Nigeria emerge as a world cement producer. This was contained in a Statement Friday December 17 2010 from the Group and made available to investadvocate in Lagos Nigeria.

 

Dangote affirmed its readiness to make Nigeria a recognised nation in the global cement market–post 2016, the same way Nigeria is recognised worldwide for Oil production.

 

Alhaji Aliko Dangote, the President of the Dangote Group, affirmed this recently at the annual dinner of the Lagos Business School (LBS) Breakfast Club.

 

The Business Mogul said it was time Nigeria started to look away from Oil and Gas and began to develop other viable sectors of the economy such as the Cement Industry.

 

“Given the abundance of the basic raw material for cement in Nigeria

(21 out of 36 states), the Federal Government needs to consistently follow a set of policies deliberately designed to maximise the advantage of this endowment,” he said.

 

He further affirmed that the Dangote Group is committed to fully meeting national cement demand by ramping up its domestic production capacity to 20 million metric tonnes per annum (PA) within the next 12 months.

 

“The envisaged production target would exceed local demand, which falls below global average; the group was working towards ensuring that Nigeria became a Net Cement Exporting Nation by 2011” the President of the Dangote Group said.

 

He again affirmed that the Group was eyeing to list on a major international bourse in 2011, in line with its global aspirations, “the listing of Dangote Cement Plc on the floor of the Nigerian Stock Exchange (NSE) recently, was a step towards this direction” he affirmed.

 

“Also, the merger between Dangote Cement Plc and Benue Cement Company Plc (BCC), which gave rise to the listing of the emergent company, Dangote Cement Plc on the Exchange, was designed to promote economies of scale and enhance operational efficiency” Dangote said.

 

He again restated Dangote Cement’s target of becoming one of the top 15 global cement producers in 2015, by which time it envisages a total capacity of 46 million metric tonnes in all its pan-African operations.

 

The Cement Company currently accounts for more than 50 percent cement in the market in Nigeria and is expanding its plants across the country to match and surpass increasing local demand.

 

The Statement further said that the Dangote Group is also trying to consolidate its cement assets in other African countries as part of its strategy to become a major global player.

 

“Already, the group has a Cement Plant in Ghana, which has commenced production, while it recently signed a $400 million (N60 billion) Investment Promotion and Protection Agreement (IPPA) with the government of Zambia, to enable it establish a Cement Plant in that country” the Statement said.

 

The Zambian Plant expected to produce 1.5 million metric tonnes per annum (PA) would come on stream by 2013.

 

As earlier reported, the group also recently, increased its stake in South Africa’s Sephaku Cement from 19 percent (19%) to 64% in a deal valued at R779 million-the highest Foreign Direct Investment (FDI) by an African company in South Africa.