Dangote selects potential Nepal sites

09 February 2015

The Dangote Group has selected two sites in Mahadevstahan of Dhading and Makawanpur as possible locations for its proposed cement factory and quarry.

The company plans to invest $550 million in Nepal. The Investment Board Nepal (IBN) had approved the company’s proposal in October 2013. Nepal is Dangote’s first-ever investment destination in South Asia.
As per the company’s action plan, it aims to conclude the task of signing a contract and make advance payments for starting the project by May-June 2015. Construction is expected to end within 27 months and the operation is likely to begin within the first half of 2017. The company aims to manufacture 6,000 tonnes of cement per day and 2 million tonnes annually.

Besides the cement plant, the company is also considering establishing a coal-powered power plant. 
According to Dangote, Nepal has an annual cement production capacity of 2 million tonnes while the market demand is around 3.5 million tonnes.

Despite having abundant raw material, Nepal is estimated to be importing around 1.5 million tonnes of cement from India annually. The cement manufactured in Nepal will be primarily targeted at the Nepal market itself. 

The Group stated that it wanted to expand beyond Africa, and South Asia was identified as a potential destination. Nepal, Indonesia and Myanmar were pitched as probable destinations. Cement demand in Nepal is expected to grow 18% in the next five years.

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