Shareholders express fear over Obajana Cement Company
May 28th, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
Shareholders of other cement producing factories, especially investors in the West African Portland Company plc (WAPCO) are expressing worry over the intended production capacity of Obajana Cement company.This was evident, as some of them posed questions to the management of WAPCO as to if they are strtegising to counter the effect of the 10 million tonnes per year production capacity of Obajana.
The impending discharge of some 10-million tons of cement into the Nigerian market yearly by the Obajana Cement Factory owned by the Dangote Group has become a major challenge to other industry players.
The capacity of Obajana exceeds that of WAPCO and Ashaka cement put together. One of the implications of this is that the Dangote Group under which Benue Cement comapny and Obajana Cement company operates will be able to dictate the market price of cement to a large extent.
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