Dangote Industries Limited (DIL) and China Sinoma International Engineering have signed an agreement to build a cement plant in Itori, Ogun State.
According to a statement sent to Ripples Nigeria, the cement plant will have an annual output of six million tons when completed in 2025.
Aliko Dangote, the founder of the cement maker, and China Sinoma Chairman Liu Renyue signed the agreement on behalf of their companies on Wednesday.
Others present at the signing ceremony included Group Chief Executive Officer, Strategy, Capital Projects and Portfolio Development, DIL, Devakumar Edwin, and China Sinoma Group Chairman, Yin Zhisong.
It was concluded that the plant would increase the country’s earnings from cement exports, as the plant would bring Dangote Cement’s production capacity in Nigeria to 41.25 million tons per year and total African capacity to 57.6 million tons. tons per year.
Speaking about the benefits of the deal, Dangote said that “the Itori cement plant will also increase Nigeria’s capacity to export cement, allowing for further diversification and inflows of foreign exchange to the economy.”
According to Dangote, the project is expected to further develop the national economy through the creation of thousands of direct and indirect jobs and boost economic development in the Itori axis. Ancillary companies, he said, will be drawn to the hub, seeking to take advantage of the cement plant’s location to provide goods and services to staff, contractors and other stakeholders.
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The statement further reads: “The project is expected to further develop the national economy through the creation of thousands of direct and indirect jobs and boost economic development in the Itori axis.” He added that ancillary companies “will be drawn to the hub, who will seek to take advantage of the location of the cement plant to provide goods and services to staff, contractors and other interested parties.”
The Itori plant will be a green field project, and the facility will have its own captive power plant to generate electrical power for cement kilns and other production processes.
The Itori cement plant will be Dangote Cement’s fourth cement plant built as a green field project in Nigeria, the rest being Obajana, Ibese and Okpella plants.
Dangote Cement is Africa’s leading cement producer with a production capacity of 51.6 Mta across Africa and Nigeria accounts for 35.25 Mta.
The Obajana plant in the state of Kogi, Nigeria, is the largest in Africa with 16.25 Mta of capacity in five lines; The Ibese plant in Ogun state has four cement lines with a combined installed capacity of 12Mta; the Gboko plant in Benue state has 4Mta; and the Okpella plant in Edo state has 3Mta.
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