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Thursday, September 4, 2014

Cement: Dangote expands production capacity by 9mmt

Dangote useAfrica’s cement manufacturing giant, Dan­gote Cement Plc, yesterday said it has increased its production capacity by an additional nine million met­ric tonnes per annum (mtpa) effective this month.


The production enhancement figure was disclosed by the Group Managing Director and Chief Executive Officer (CEO) of the firm, Mr. Deva­komar Edwin, during a media briefing to unveil the new Dan­gote cement package in line with the directive of Standards Organisation of Nigeria (SON) for cement companies to comply with the 42.5 and 32.5 cement grades.
Edwin explained that lines 3 and 4 in Ibese, Ogun State, has additional six million mtpa and another three million mtpa line 4 at Obajana, Kogi State.
With this development, he said Dangote has equally con­
cluded plans to launch its brand of the premium 32.5 cement grade, selling N200 lower than the price of higher strength 42.5 as a result of increased production.
Edwin said specifically that the 32.5 grade, which has the lowest strength among the various cement products will be priced lower than the others and will be selling at N200 lower than the price of the higher strength 42.5 grade, adding “this in addition offers our numerous customers and end users the prerogative of choice and its appropriate application.”
Edwin noted that the entrance of the 32.5 cement grade from Dangote would ensure that the consumer pays the appropriate price for the right value rather than paying more for lower grade as is presently the case in the market.
He disclosed that Dangote Cement is currently reviewing the selling prices of its products with intent to reduce them and make the products available with the recent commissioning of additional six million metric tonnes per annum lines 3 and 4 in Ibese, Ogun State and another three million metric tonnes capacity additional line 4 at Obajana, Kogi State.
On its new packaging, the CEO said the company has fully complied with the directive of SON by ensuring that the 32.5 cement grade, which has been branded “Dangote Cement 1X” would be clearly marked in the colour prescribed by SON with the uses for which it should be applied, which is purely for plastering.
Besides the caveat, he explained that the new package also comes with an expiry date, batch no and content specification for the benefit of members of the public.
For the 42.5 cement grade, which is for concrete works, reinforcement and beams, he disclosed that all the details are replicated on the package as well in order for everyone to know and identify the different roles each grade plays.

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