…To create 5,000 jobs in Ghana
16 July 2016, Sweetcrude, Abuja – Dangote Cement manufacturing company has disclosed that it is in the process of adopting coal to power many of its plants in the country as against gas or low pour fuel oil, LPFO, which is costlier.
This decision, the company explained in a company statement obtained by our correspondent in Abuja, is made easier due to the lower cost and widespread availability of coal as an alternative power source across Nigeria.
It noted that “At 13.25Mta, our Obajana Cement Plant in Kogi State, Nigeria, is the largest in Africa and one of the largest and most profitable cement factories in the world. Employing thousands of people, directly and indirectly, it was opened in 2008 as a 5Mta plant and has twice been extended in size.
“Although Obajana is primarily gas-fuelled, we recently commissioned coal facilities to fuel its kilns as well, being significantly cheaper as a backup fuel than the low pour fuel oil (LPFO) we had originally used.”
It added that “Our Ibese Cement Plant in Ogun State has four gas-fired cement lines with a combined capacity of 12Mta. Its first two lines were inaugurated in February 2012 and the second pair of lines came onstream in late 2014.
“Like Obajana, Ibese is abandoning the use of LPFO in favour of coal. Our Gboko Cement Plant in Benue State has 4Mta of capacity. Acquired originally during the privatisation exercise in Nigeria, we refurbished and upgraded the plant to its present capacity.
“Originally designed to use LPFO, Gboko is being equipped with coal milling facilities so that its kilns can run more cost-effectively on the cheaper fuel. Gboko was mothballed throughout most of 2015 as we shifted production to cheaper gas-fired lines at Obajana and Ibese.
“Over the past few years, the profitability and strong cash generation of our operations in Nigeria have helped us to expand our business across Sub-Saharan Africa with a mixture of integrated, grinding and import facilities,” it stated.
The statement further noted that “The Company that became Dangote Cement was founded at a time when Nigeria was almost entirely dependent on imports. Indeed, importation of cement was our main business for many years until the Federal Government launched its industrial policy of Backward Integration in 2002.
“This bold initiative was designed to reduce Nigeria’s dependence on imports by encouraging the industry to build enough capacity to serve Nigeria’s needs, not just in that decade but long into the future. Probably Africa’s most attractive market for cement, Nigeria has substantial limestone and energy resources, a large and increasingly prosperous population, strong GDP growth and a pressing need to improve infrastructure and housing on a massive scale.
“We have invested billions of dollars building new capacity that has single-handedly helped Nigeria to become self-sufficient in cement. In the process we have created thousands of jobs across the country in factories, logistics, sales and support.”
Meanwhile, as part of the initiative to widen the access and improve on the availability of cement in all parts of the country, Dangote Cement Ghana has procured 1,000 brand-new-trucks to facilitate the distribution of product into all parts of Ghana.
With these, the Company has commenced the process of recruitment of drivers, truck driver assistants, and loaders.
These trucks which came in three different vessels arrived at the shores of Tema Port between July 4 and July 8, 2016, according to the Company’s Media Relations Manager, Mr. Etornam Komla.
“We’ve started the recruitment exercise and by the end of July, all of the drivers will be on board,” Komla said. The recruitment exercise, according to Komla, is part of the company’s objective of contributing to Ghana’s economic growth through job creation and honoring tax obligations.
“These are components of the Company’s mission in Ghana which is to stimulate its economy.”
He said the company has also invested over $100 million in the construction of a new plant in Takoradi in the Western Region. The plant which will be a state of the art modern Cement Grinding Plant will have the capacity to produce about 1.5 million tonnes of cement per annum.
“This project when completed will further cement the presence of Dangote Cement business in Ghana and is a further proof of our commitment to the Infrastructural development of the country and will also enable us to meet the growing demands across other countries in West Africa.
Though, Cement manufacturing has taken the centre stage of the businesses of Aliko Dangote, the owner of the Dangote Cement Ghana, has recently made a foray into oil and gas, investing in key industries such as Petrochemical, Refinery, and Fertilizer within Nigeria.
The Petrochemical complex where these plants are being built occupies a land complex in excess of 2,100 hectares. These projects will cost in excess of $12 billion. The Oil Refinery has a capacity of 650,000 barrels per day and over 3,000,000 Ammonia and Urea plants.
Chairman of the group, Alhaji Aliko Dangote told reporters recently that these businesses will be ready between 2018 and 2019.
In addition, there is a plan to build a 550KM Gas Pipeline across Nigeria and into West Africa.
Dangote Cement is Africa’s leading cement producer with 44 million tonnes per annum (Mta) of capacity operational at the end of 2015 in Nigeria, Cameroon, Ethiopia, Senegal, South Africa, Tanzania, and Zambia.
Headquartered in Lagos, the Group is managed by an executive team led by the Group Chief Executive Officer (GCEO), who reports to the Chairman and the Board of Directors.
Dangote Cement has three regions: Nigeria, West & Central Africa and South & East Africa, each with its own CEO and CFO reporting to the Group CEO and Group CFO respectively.