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Dangote Cement consolidates leadership in Africa with Senegal

Written by , Tuesday, 26 November 2013

Dangote Cement Plc is a step closer to its aim of becoming Africa’s leading supplier of cement with its intention to open both its cement plants in Senegal and South Africa.

According to a statement, the company’s chief executive, D.V.G. Edwin recently said: “Our plant in Senegal will soon be producing cement and our South African venture, Sephaku Cement, is well on track to open in the early part of 2014. These two plants will be our first production ventures outside Nigeria as we aim to become Africa’s leading supplier of cement.”

Ultimately, Dangote Cement across Africa will have the capacity to produce over 50m metric tonnes per annum (mta) by the end of 2016
Commenting further on the group’s African project, Edwin revealed that: “In Ethiopia, work is well under way to build a 2.5-mta plant at Mugher, with production expected early in 2015. In Tanzania, we have now begun work on a 3-mta, gas-fired plant at Mtwara that is expected to be operational in October 2015. In Zambia, work is under way on a 1.5-mta plant at Ndola, with cement production expected in mid-2014…Building work is progressing with a 1.5-mta grinding plant in Cameroon, with completion expected in the first half of 2014. In Congo, we will build an integrated plant of 1.5 mta, expected to begin production in the second quarter of 2016.”

In addition, he said Dangote Cement will also build a 1.5-mta plant in South Sudan, to become operational in 2016, as well as a 1.5-mta integrated facility in Kenya.

Along the coast of West Africa, Edwin further revealed that the group has concluded plans to build import facilities to receive and bag bulk cement produced in Nigeria and Senegal and that work has begun on import facilities in Sierra Leone, with operations expected to begin towards the end of 2013 or in early 2014.

He said:”In Liberia, plans are advancing and orders for equipment have been made for an import facility in Freeport Monrovia. Imports into Liberia are expected to commence in early 2015. In Ivory Coast, we plan to build a 1.5-mta grinding plant in Abidjan, with operations projected to begin in early 2015. In Ghana, we plan to open 1.5mta grinding plants in Tema and Takoradi by early 2015. We have recently announced our intention to build an integrated 1.5mta plant in Niger…”

It would be recalled that Dangote Cement in Nigeria recently announced an impressive nine months results which showed growth level on all ramifications.

Sales increased by 29.5 per cent in Nigeria to 9.95 million tonnes, while an estimated 16 million tonnes of cement was sold in the country in the reviewed nine months, ended on September 30, 2013.

For the reviewed period, Dangote Cement revenue increased by 28.7 per cent while its profits grew by 39.4 per cent to N189.4 billion.

The foremost cement manufacturing group’s financial result released on the floor of the Nigerian Stock Exchange (NSE), showed that, while its profit before tax (PBT) rose to N151.73 billion indicating an increase of N45 billion over N106.43 billion in 2012, its group operating profit rose by 36.4 percent to N156.89 billion.

In the three months ended September 30, 2013, gross profits stood at N57.26 billion in contrast to N43.91 billion in 2012 while PBT rose from N35.62 billion to N44.05 billion.

The Cement’s group revenue for the period under review went up by N64 billion or 28.7 percent to N288.98 billion compared to N244.50 billion at the preceding year. In the three months ended September 30, 2013, the group earned N90.52 billion in contrast to N70 billion in 2012.

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Bodibeng Trading Proprietary Limited

Founded by Mr Gaopalelwe Olebogeng from the Verdwaal Village in the North West province who is the sole managing member of Bodibeng Trading Proprietary Limited. Mr Gaopalelwe has previous experience in plant cleaning that he acquired during his tenure as a plant cleaner at another cement company in Lichtenburg. Bodibeng Trading Proprietary Limited employs 36 employees from the local community and currently has a short-term contract with SepCem which includes mentorship to ensure that it effectively provides the plant cleaning services at Aganang.

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Mancamane Trading Enterprise

Mancamane is a black female-owned enterprise that started operating in 2010 as a plant cleaning, construction and mining supply company. Ms Daisy Maseko, a renowned entrepreneur, founded the enterprise in the Delmas area, Mpumalanga province and currently employs 28 permanent staff. SepCem adopted Mancamane into the enterprise development programme in 2014. The company is currently supplying plant cleaning services to the Delmas grinding plant and has demonstrated the ability to grow sustainably.

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MM&JK Cleaning Projects Proprietary Limited

In 2014, SepCem contracted the cleaning services of MM&JK Cleaning Projects, an enterprise established in 2013 by Mr Sipho Mazibuko from a village called Springbokpan in the North West province. SepCem identified MM&JK Cleaning Projects as a well-managed enterprise that is appropriately suited to benefit from the programme. In the case of MM&JK, SepCem has partnered with another major industrial organisation to mentor Sipho.

The partner’s role is to assist MM&JK Cleaning Projects with inproving its cleaning skills through training, providing cleaning equipment and required detergents. SepCem’s role is to develop Sipho’s business management skills including cost management, record keeping and negotiation. SepCem is assisting MM&JK to develop a marketing strategy to increase its customer base to reduce the single-customer dependency risk and ensure that the company is sustainable. MM&JK Cleaning Projects currently has a three-year contract with SepCem for general cleaning at Aganang and employs 14 permanent staff.

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Millicent’s Enterprise

Millicent’s Enterprise is 100% black female-owned and was founded by Ms Millicent Mahlabe, an entrepreneur from Delmas in the Mpumalanga province. The company was selected for the programme because it has historically demonstrated the ability to supply large contracts but lacks administration skills. Millicent’s has a good reputation and positive track record of being able to cater for large provincial government events.

SepCem secured Millicent’s catering services in 2013 for its canteen at the Delmas plant that provides meals to 150 employees. Millicent’s currently has seven permanent employees and several contract employees who are sourced as and when required.

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