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Nigeria: Dangote Cement to invest in capacity to meet demand

By David Whitehouse
Posted on Friday, 4 June 2021 12:17

Abuja, Nigeria, May 11, 2021. REUTERS/Afolabi Sotunde

Dangote Cement plans to use balance sheet cash to increase production capacity to meet demand, CEO Michel Puchercos tells The Africa Report.

All the company’s idled capacity has already been restarted, Puchercos says. Money will be spent to “debottleneck” existing plants, which can typically result in lifting capacity by between 5% and 15% per plant, he says.

  • A new plant is also being built at Okpella in Edo state and this will be commissioned “in the next few months”.

Recent increases in demand for Nigerian cement are faster than in growth periods in emerging markets such as China and India, he says. “I’ve almost never seen such growth” in 20 years in the industry. He expects strong demand to continue for at least three to six months.