Nigerian cement industry’s planned capacity could ‘dwarf’ South Africa’s

20 August 2014

If all the key players in the cement industry conclude their short-term expansion plans, then Nigeria’s capacity will reach as high as 58.5 million metric tons (MTs) annually, dwarfing South Africa’s capacity of 18.3MTs and Egypt’s 48MTs.

Last week, Dangote Cement announced that it was adding 6 million MT through its newly-built lines C and D at Obese plant. With this, it is expected that the Nigerian cement market will get 12MTs from just the Ibese cement factory. The company’s capacity will likely reach 29MTs per annum before the end of this month. Dangote Cement said it would achieve its plans to reach 35MTs earlier than expected, and introduce innovative products.

With the transaction which has seen Lafarge Group transfer its shareholdings in businesses in Nigeria and South Africa into forming Lafarge Africa, 12MT capacity is already guaranteed.

Similarly, the United Cement Company of Nigeria (UniCem) is investing N84 billion in an additional 2.5-MT project to double its 2.5MT existing capacity by 2016, and consolidate it as Nigeria’s third largest manufacturer.

Also, Ashaka Cement is investing N100 billion to increase capacity to 4MT per annum.

In 2010, BUA International Limited acquired Damnaz Cement Company Limited and became indirectly the majority shareholder in Cement Company of Northern Nigeria (CCNN) and its technical partner. The firm also acquired Edo Cement Factory.


By Odinaka Anudu
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