Aliko Dangote, the Nigerian billionaire and chairman of Dangote Industries, announced

the group would expand its investment in Ethiopia.

The billionaire already has a cement factory in Ethiopia, which he built at the cost of 600
million USD and installed a production capacity of 2.5 million tons. The factory
commenced production in June 2015.

Commenting on the development, the company’s sales and marketing head, Mesfin
Abera, said Dangote Industries decided to expand its project at the existing plant. The
expansion work will be carried out at the cost of 600 million USD and have an annual
production capacity of 2.5 million tons, he furthered.

“We now have 134 hectares of land and we need only an additional 18 hectares. We
submitted our request to the Oromiya Regional State and we have got a positive
response,” Mesfin noted.

Commenting on the issue of excess cement supply in the market, Mesfin said, “We do
not worry about the market. We have conducted a thorough market study. This country
is growing in a double digit. Massive infrastructure development projects are being
undertaken. If the development plans set in the second growth and transformation plan
are properly implemented, there will be no market problem. The market situation does
not worry us.”

According to him, the company is in quest of new markets. It has already started
exporting cement to Northern Kenya. Since February it exported 2200 tons of cement
that is worth 240,000 USD. In addition to this, the company is undertaking market
studies to expand to South Sudan, Somalia and Djibouti.

Other than the cement factory plant, Dangote is planning to construct a cement bag
factory across the cement manufacturing plant in Muger City. The cement bag factory
will be built at a cost of 19 million USD and it will have a production capacity of 120
million cement bags per annum.

Dangote will only use 30 to 35 percent of the cement bags it manufactures. The rest will
be supplied to local cement factories.
Currently there are around 20 cement factories in Ethiopia. However, it is only Messebo
that manufactures its own cement bag.

Mesfin explained Dangote would expand its cement bag plant to PP bags
manufacturing. “Once we have completed the first bag plant we will build the second
phase that will produce different PP bags for other purposes,” he said.

Source: The Reporter