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Why Cement Price is Still High – Dangote

Why Cement Price is Still High – Dangote
President, Dangote Group, Alhaji Aliko Dangote

A major manufacturer of cement in the country, Dangote Cement Plc, has explained that the recent increase in the price of the commodity is due to low production of the commodity is as a result of turnaround maintenance of some plants and gas shortage.

However, the company said it had released nine million tonnes of cement into the market in a bid to prevent the commodity’s price from soaring.

The hike in cement prices became noticeable in January this year with a bag of the commodity, which sold for between N1,700 and N1,800 previously selling at up to N2,500 by February.

The President, Dangote Group, Aliko Dangote, had said at the company’s Annual General Meeting held in Lagos recently that the firm had not increased cement prices as was being alleged in some quarters.

He was quoted as saying in the statement made available on Sunday, “The recent scarcity in cement product in Nigeria is due to low production between January and March due to the yearly turnaround maintenance of the company’s plants at Ibeshe and Obajana.

“We have released nine million tonnes of cement into the market to stem the tide of scarcity and bring down the price.”

He pledged that as part of efforts to bring the situation under control, the company would also intensify direct-to-consumer deliveries.

According to him, the move is based on the belief that adequate supply of the commodity will lead to a reduction in price.

Dangote Cement has plans to invest in no fewer than 16 African countries for cement production

Dangote has also said that the group is partnering with the government of Tanzania to complete a $600m cement factory in the East African country.

He said the plant, which has already reached 25 per cent completion, would have the capacity to produce three million metric tonnes of cement annually when completed.

Dangote spoke with journalists at Obajana, Kogi State after conducting the President of Tanzania, Dr. Jakaye Kikwete, round the cement plant. Kikwete was in Nigeria for the World Economic Forum.

Kikwete, who said the Obajana Cement Factory was a state-of-the-art facility, described Dangote as a reliable partner.

He expressed the hope that the cement factory in Tanzania would be the best globally when completed.

Source: Punch

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