Dangote Industries Limited (DIL), and China Sinoma International Engineering, have signed an agreement to build an integrated six million ton per annum (Mta) cement plant in Itori, Ogun State.
The Chairman of Dangote Cement Plc, Aliko Dangote, and Group Executive Director, Strategy, Capital Projects & Portfolio Development, DIL, Devakumar Edwin, signed the contract on January 21, in Lagos, while Group President, Yin Zhisong, and Chairman, China Sinoma Engineering, Liu Renyue, for their company.
In a statement in Lagos yesterday, Dangote was quoted as saying that the new plant at completion will strengthen the local production capacity of Dangote Cement, bringing its local capacity to 41.25Mta and total African capacity to 57.6Mta.
He said the Itori Cement Plant will also increase Nigeria’s capacity to export cement, thereby enabling more diversification and foreign exchange inflows for the economy
Dangote added that the project would also develop the domestic economy through the creation of thousands of direct and indirect jobs and drive economic development in Itori.
Furthermore, ancillary businesses would be drawn to the area, seeking to take advantage of the location of the cement plant to provide goods and services to staff, contractors and other stakeholders.
He informed that constructing the new cement plant is in line with Dangote Group’s vision of producing locally goods that were formally imported despite the abundance of raw materials for local production of such goods.
The Itori Cement Plant will also increase Nigeria’s capacity to export cement, thereby enabling more diversification and foreign exchange inflows for the economy.
Dangote described Sinoma as a strategic partner that has been instrumental to the success of key projects in the Dangote Group.
“We are comfortable working with your company. You have handled some of our key projects and I am positive that this project will be completed as scheduled,” he added.
On his part, Zhisong expressed satisfaction with the commitment and determination of the Dangote Group in building cement plants across Africa.
He said: “It is an honour for us to build another cement plant for Dangote Group. We are proud and happy to be on this journey with the company again.”
When operational, the plant is expected to have two lines x 6,000 tons per day (TPD) clinker production with an installed daily total capacity of 12,000 TPD. It is expected to be completed within 27 months with best-in-class equipment in the cement industry, sourced from Europe’s major equipment suppliers.
The plant will also have its own captive power plant to generate electric power for use by cement kilns and other production processes.
The Itori Cement Plant will be Dangote Cement’s fourth cement plant constructed as a green field project in Nigeria. The others are Obajana, Ibese and Okpella plants.
Dangote Cement is the leading cement producer with 51.6Mta production capacity across Africa with Nigeria accounting for 35.25Mta.
Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta; Gboko plant in Benue state has 4Mta; and Okpella plant in Edo state has 3Mta.