Dangote Cement, Nigeria’s biggest listed company, expects to slow its capital spending next year to around $700-million, as it completes most of its African expansion projects, its CE said on Wednesday.
Edwin Devakumar said Africa’s biggest cement operation budgeted to spend around $1.4-billion this year, as it ramps up its cement works from Senegal to Zambia, the bulk of which are expected to begin production this year.
Dangote Cement embarked on expansion outside its home market to tap into infrastructure growth and has invested more than $5-billion in projects in Cameroon, Ethiopia, Kenya, Niger and Zambia.
Dangote Cement this week lowered cement prices in Nigeria by about 14% to boost volumes after it said sales in NIgeria for nine months to September fell by 1% to 9.8-million tonnes and reported a 1.5% rise in pretax profit.
The cut in cement prices has seen its share price drop 1.7% since Monday, hitting a 14-month intraday low of 188.53 naira on Wednesday. The stock, which makes up a third of Nigeria’s market capitalisation, is down 4.6% this year.
Dangote Cement’s South African operation has started production and it has started commissioning its Senegal plant. Ethiopia will start the commissioning process next month, Devakumar said.
By: Reuters
http://www.engineeringnews.co.za/article/dangote-cement-to-slow-capex-next-year-as-africa-expansion-gains-pace-2014-11-06/rep_id:3182
