Obajana cement to produce 10 million tonnes of cement
May 22nd, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
After a long expected wait, Obajana cement factory has finally been commissioned. This landmark event took place in Kogi state last week, with president Olusegun Obasanjo in attendance.
Speaking on the future plans of the company and Dangote group as a whole, the president of the group, Alhaji Aliko Dangote said that in the nearest future, Nigerians would own all Dangote companies.
It is based on this that Dangote Flour is due to go public anytime soon. Following this will be Obajana Cement Company. The chairman said that the group was committed to making Nigeria a net cement exporter by 2010. The Obajana cement company is expected to have a production capacity of 10 million tones yearly, which also translates to 5000 bags daily. Benue Cement Company, which is also under the Dangote Group presently has a production capacity of 3 million tones. Obajana Cement Company has four production lines with capacity of 2.5 million tones each per annum.
Already, Nigeria consumes between 9-10 million tones of cement annually, which is made available from local production and importation. Obajana cement in expected to save the country about $460 million which is spent on cement exports. It will also create employment for about 10,000 Nigerians.
The total project estimate stands at $1 billion (about N126 billion) and was financed by both local and international financial institutions.
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