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Dangote expects to begin exporting Nigerian cement

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World Cement,

Having brought Nigeria to the point of self-sufficiency in cement production, Dangote Cement is expecting to begin seaborne cement exports from Nigeria to other West African countries by the end of the year. The company had been exporting via road to Ghana – but had recently scaled back those volumes due to high costs. Dangote reported exports of 0.211 million t to Ghana in 1Q17.

“In terms of road transport, we have reduced that enormously,” said Dangote’s Executive Director – Finance, Brian Egan, in a recent call with analysts. “We will start exporting to Ghana again one we have [the] export terminal built in Nigeria, which we expect to happy at the end 4Q18.”

According to a recent report by Yvonne Mhango of Renaissance Capital, Dangote could export as much as 3 million tpy of clinker – or around 17% of its Nigerian production – to its West African neighbours.

“By the end of the year and certainly into the new year, we could be exporting clinker […] to various locations on the West African coast,” said Joseph Makoju, Dangote’s Managing Director/CEO. “Next year, those export terminals should be making some very handsome contributions to our volumes.”

In addition to Nigerian exports to West Africa, Makoju also said the company would target exports from its Republic of Congo plant into the neighbouring Democratic Republic of Congo (DRC), as well as into the Central African Republic.

“Congo has made a slow start but we sill look at growing exports,” said Makoju. “Where we are going to make a major improvement in volumes is when we begin to export to the DRC.”

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Dangote news Cement news 2018