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Dangote Group set to expand into Nepal

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World Cement,

According to reports, the Dangote Group is set to establish a cement plant in Nepal. The Investment Board of Nepal (IBN) is apparently on the verge of approving the proposal, which will be the first to gain approval since the IBN was established more than two years ago. The Nigerian Dangote Group is reportedly proposing an US$800 million investment in a new plant, the size of which has yet to be reported.

Radhest Pant, Chief Executive Office of the IBN, is quoted as saying that the next board meeting will give formal approval for the project, which is the first step towards project implementation. The next board meeting will be held within the next week or so, and this proposal is reportedly the first item on the agenda.

Currently, some 40% of Nepalese cement is produced in Nepal, with the remainder imported from nearby countries such as India and Bhutan. With an abundance of limestone, the country has been working towards self-sufficiency in cement production for the last few years, but has suffered setbacks, including the recent closure of several plants for failing to meet cement quality standards.

The Dangote Group has a short but hugely successful history within the cement industry, and has recently announced plans to increase its total capacity to 55 million t by 2015. Its current capacity rests at 20 million t. New plants are due to start up in Cameroon, Zambia and South Africa in 2014, and in Tanzania, Ethiopia and DRC in 2015.

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