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Dangote: 9m tonnes supply to crash cement prices by 300%

cement-300x202

Dangote Cement Plc, yesterday, predicted

sharp drop in local cement prices by 300 percent

from next month.

The company said this will be made possible by the

supply of an additional nine million metric tons

into the market from its factories at Ibese and

Obajana.

Also the cement giant is coming out with its own

brand of 32.5 grade cement in the next seven

days.

Devakumar Edwin, Group Managing Director,

Dangote Cement, told journalists in Lagos that the

company is currently reviewing the selling prices

of its products with intent to reduce them and

make the products available with the recent

commissioning of additional six million metric

tons per annum lines 3 and 4 in Ibese, Ogun state

and another three million metric ton capacity

additional line 4 at Obajana, Kogi State.

Altogether, the company is producing locally at a

combined installed capacity of 29.25 million

metric tons per annum across its three plants in

the country –Ibeshe, Obajana and Gboko.

“We have significantly increased the supply of

cement to the market and as it is expected, the

enhancement in supply of the product to the

market has also resulted to a reasonable

reduction in the price of the product; our

distributors have started effecting the price

changes as the price of the 42.5 grade is now less

by N100 per bag, while the soon to hit market

32.5 grades will be selling N200 lower than the

price of higher strength 42.5,” he disclosed.

On why they are adding 32.5 cement grade to

existing products, he explained that it was in

response to popular demand from the customers

as well as in full compliance with the SON

directive encouraging production of all grades of

cement but with clear labeling on the use.

“The entrance of the 32.5 cement grade from

Dangote would ensure that the consumer pays

the appropriate price for the right value rather

than paying more for lower grade as is presently

the case in the market.

“Our 32.5 cement grade branded “Dangote

Cement 1X”, would be clearly marked in the

colour prescribed by the SON with the uses for

which it should be applied, which is purely for

plastering,” he stated.

Dangote with this move now produces 42.5 for

column and beam casting, block making, decking

and other general purpose construction work that

require high strength, while also producing the

premium 32.5 grade for plastering and flooring

only.

Edwin also informed that the company is also

pushing out the 52.5 grade for specialised

construction of high strength structures such as

bridges, flyovers among others.

 

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