Against the background of the skyrocketing price of cement in the market, leading cement manufacturer, Dangote Cement Plc has released into the market, a supply of 9 million tons of the commodity, to stem the price hike.
President of Dangote Group, Aliko Dangote
made this disclosure when the President of Tanzania, Dr Jakaya Kikwete
paid a facility visit to the 10.25 million Mtpa capacity Obajana Cement
Plant in Kogi State at the weekend.
Dangote who had earlier told the Company
shareholders during its 2013 Annual General Meeting that his company had
not increased cement price went ahead to publish in the dailies how
much his cement is sold still maintaining its price despite increase in
cost of production input.
He reasoned that low production leading to
reduced market supply as a result either turn around maintenance of its
plant or shortage of gas must have been cashed in on by profiteers to
shortchange members of the public by deliberately hiking the price.
Said he: “the recent scarcity in cement
product in Nigeria is due tto low production between January and March
due to the yearly turnaround maintenance of the company’s plants at
Ibeshe and Obajana.
We have released 9million tons of cement into the market to stem the tide of scarcity and bring down the price.
Therefore, Dangote told newsmen at Obajana
that with full production attained, his company quickly supplied about 9
million tons into the market to flood the market and arrest the high
price since he believed that once the supplies increased and even
beating demand, the price as of necessity would come down.
The Group President and the Tanzanian
President flew into Obajana at the close of the World Economic Forum
which held at the Transcorp Hilton between May 7 and 9 in Abuja.
Dangote said the visiting Tanzanian
President was at the plant to see things himself as the company was
building 3 million metric tons of cement plant in that country.
He said the cost of the plant is
$600million and that construction work has reached 30 per cent
completion. The plant when completed is expected to be officially opened
in 2015.
Speaking, President Kikweto said he took
time from the meeting in Abuja to see things himself, and he was
convinced Dangote is a good business partner his country could trust
describing what he saw as ‘wonderful.’
It would be recalled that only recently
Kenyan Deputy Prime Minister Wiliam Ruto visited the Obajana Plant as
Dangote Cement Plc is building a 3million metric tons of cement worth
$600m in Kenya.
Dangote Cement Plc has three plants in
Nigeria. They are: Obajana Cement Plant which produces about
10.25million metric tons, the Ibese plant which produces 6million metric
tons and the Gboko plant which produces about 4million metric tons.
Apart from in Tanzania and Kenya, Dangote
Cement Plc is also building a 2.5million metric tons cement plant in
Ethiopia and 1.5million metric tons capacity in The Zambia, as well as
import and landing facilities along the coast of West Africa.
Source: spyghana.com
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