Dangote Cement eyes Asia market

19 October 2016

A leading manufacturer of cement in Africa, Dangote, is hoping to move into the Asian market in the next decade.The company, which currently operates in over eight countries in Africa, plans to launch in South East Asia and Latin America once it is able to consolidate its operations in Africa.

The immediate targets in those regions are Nepal, Indonesia, Vietnam and Colombia, according to the director of the company’s Ibese factory in Nigeria, Armando Martinez Gallegos.

Gallegos ruled out the possibility of exporting to Europe or the USA, saying, “there are only two places in the world in which the construction and cement industry is growing; South East Asia and Africa”.

Dangote Cement has already announced plans of building a 3.0MTa facility in Nepal, from which it aims to export to India to feed the demand of neighbouring countries which lack limestone (the raw material for cement production).

According to the International Monetary Fund (IMF), the two South-Eastern countries Dangote is likely to move into are on track “for strong GDP growth”. It is interesting to note that the two countries collectively have a capacity of 154.5MTa of cement annually – Indonesia – 63.1 MTa & Vietnam – 91.4MTa. Vietnam has expressed concern that cement production will exceed demand. This means manufacturers in these countries are also seeking export markets.

Dangote Cement in Africa

Dangote is currently present in Zambia, Tanzania, South Africa, Sierra Leone, Senegal, Ethiopia, Ghana, Cote d’Ivoire, Congo, Senegal, Ethiopia, Cameroun and Nigeria. These comprise existing and planned operations. Between 2017 and 2019, full-fledged operations should commence in Liberia, Kenya, Mali, Niger, Zimbabwe and Nepal.

Per the company’s 2015 annual report, the total volume of cement sold was 18.9 million tons, representing a 35% increase over the previous year. With a capacity to produce 44 million tons per annum in the operational countries including Ghana, the company employs 14,289 people, most drawn from the communities within which the installations are situated.

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