Dangote’s Calabar 6mmt Cement Plant Takes Off July
Monday, 28 May 2012
The quest by Dangote Cement Plc to hit 60 million metric tons per annum cement production from all its plants within the next three years has received a boost with the coming on stream of another six million metric tons per annum capacity plant in Calabar, Cross-River State.
Chairman of the Cement Company, Alhaji Aliko Dangote who made this disclosure at the weekend during this year’s Annual General Meeting (AGM) of the company in Lagos, said the Calabar plant will be ready within the next 60 days.
Fielding questions from newsmen after the meeting, Dangote explained that the Calabar plant was almost completed and that the location was very strategic as it was meant to serve the consumers locally and in Central African states like Cameroon and Gabon.
He assured that Dangote cement would continue to lead in more investment in the cement industry while explaining that additional investments by the management would only increase the value of the shares of the organization and remain investors delight.
Dangote pointed out that with the planned expansion of Ibese plant by another two lines of three million mtpa each, the June 11 commissioning of the Obajana Plant line 3 and the ground breaking of the line 4 as well as other operations in 14 other African countries, Dangote cement will hit 60 million mtpa within the next three years.
He disclosed that Ibese plant would be expanded with the addition of 6 million mtpa line 3 and 4 within the next 26 months noting that all the expansion works were meant to achieve the target of Dangote cement of being the largest cement producer in the world.
By the Dangote Cement calculation, of the 60 million mtpa, 55 per cent would be local consumption while the rest 45 per cent will be for export to other sub-Saharan African countries.
He stated that much as the Dangote cement management is producing more so also it is not compromising quality of the product. He explained that Dangote Cement uses the latest technologies in its plants and challenged anyone to come forward to disprove his claim that Dangote Cement quality is one of the best in the whole world.
"We appreciate our customers and we will always protect their interest. much as have the patriotic zeal to ensure our country is self-sufficient in cement production and become exporting nation to help her industry grow, so also we are mindful of the need to have the best quality product", he added.
Dangote said the Company had strengthened its corporate governance bu joining global companies that report under the new International Financial Reporting Standards to project the company as a global brand in the international market place saying KPMG was contracted to assist in making the process seamless and timely.
On the price of cement, the Industrialist explained that contrary to the widely held views that the piece of cement has been on the increase, the price of Dangote cement has remained same over the years despite the fluctuation of the foreign exchange and the increasing cost of energy.
The leading Cement Manufacturer had during the AGM announced a profit of N125 billion and declared a bonus of one for every ten shares held by its investors and endorsed a dividend pay-out of N1.25.
The operating profit rose from N102. 969 billion posted during the same period in the 2010 to N117. 332 billion a disclosure that drew applause from jubilant shareholders.
One of the Shareholders, Otunba Mukthar Mukhtar of the Shareholders Trustees Association (STA), commended the management of the cement company for a job well done and described the results as the most excellent ever declared by any quoted company in recent years.
He said while some companies were on the downward slide in terms of turnover, Dangote cement was on the upward swing an attestation to the managerial ability of the directors and entrepreneurial dexterity of the Chairman as a shrewd businessman.