Dangote Cement predicts strong volume growth for 2016 …to open Congo, Sierra Leone plants before year end

Dangote Cement predicts strong volume growth for 2016
…to open Congo, Sierra Leone plants before year end
Dangote Cement Plc has revealed new strategies to boost its cement business across Africa countries by the end of 2016.

The Chief Executive Officer of Dangote Cement, Onne Van der Weijde while speaking at the company ‘facts behind the figures’ presentation on the Nigerian Stock exchange (NSE) today in lagos said the company is expected strong volume growth in 2016.

Van der Weijde said, Congo plant is set for operation in October, while Sierra Leone plant expected to be ready by October 2016.

He stressed that more of Dangote Cement will export to Ghana from Nigeria and ECOWAS countries.

To reduce the company’s spending on power, Van der Weijde said, Dangote Cement will start 100 per cent coal power production in September, 2016.

Van der Weijde said the company has decided three years ago to diversify and de-risk fuel supplies and go into coal production saying, in an attempt to overcome the shortage of gas supply in the country and reducing the challenging of foreign exchange paid on gas, most coal mills will be operational by end of September.

He added that the some of the company plant in Obajana in Kogi State and Ibese in Ogun State have already using locally purchased coal for operation, blending with imported coal to assure optimal quality.

“We will begin mining our own coal at Ankpa in Kogi State in fourth quarter,” he said.
He pointed out that coal will transform profitability of Gboko plant which is previously on 100 per cent LPFO.

He explained that disruption and maintenance have lead to shortages of gas since 2014, thus affecting margins.