Dangote Cement has reopened the Gboko cement plant after Dangote CEO Aliko Dangote met with Nigeria’s President Goodluck Jonathan yesterday. The plant was closed late last year due to an oversupply situation in the Nigerian cement market caused by imports from abroad.
Nigeria reached a demand/supply balance in 2012 after a massive expansion plan in the country. As imports continued, local suppliers put pressure on the government to halt imports and let the domestic industry thrive. It would appear from the reopening of the Gboko plant that their voices are being heard. However, according to reports, the Gboko plant will only operate at 50% capacity. This Day Live quotes Tony Chiejina, Dangote Group’s Group Head, Corporate Communications, as saying: “We are confident that in the days ahead, we will see positive developments and actions that will address problems of local cement manufacturers in Nigeria.”
Meanwhile, Nigerian investment banking company, FutureView Financial Services Limited has given Dangote Cement a boost by predicting share prices will rise by 69% this year. Citing increasing capacity and high operational efficiency, and given the company’s consistent growth in sales, the analysts make quite the case for investors.
Written by Katherine Guenioui.