Announcement by Dangote Cement that it plans to build two new cement plants in Nigeria lifted the country’s stock exchange on Monday, ending a three-day bear run, Reuters reported.
The firm that’s owned by Africa’s richest man, Aliko Dangote, accounts for a third of the Nigeria Stock Exchange (NSE) capitalization.
Its shares jumped 7.8 percent after the company said it planned to build two new cement plants in two communities of the country, which it expected will increase its annual output by 9 million metric tons to 38.25 million metric tons.
The new plants are expected to help Dangote Cement cut on its production costs and reduce product prices in the local market, which is expected to boost the company’s market share in coming years.
Currently,Dangote cement is exporting cement to Niger, Ghana, Togo with plans to move up to the Ivory Coast.
