Africa’s largest Cement producer, Dangote Cement has begun exporting clinker by sea from its facility in Apapa Port Lagos.
In June Dangote Cement commissioned its Apapa port terminal (Lagos) and shipped clinker to West and Central Africa, according to Group Managing Director/Chief Executive Officer (GMD/CEO), Michel Puchercos.
“We are extremely pleased to report this development in our business,” said Puchercos, during a fact behind the figures briefing on the Nigerian Stock Exchange (NSE) monitored by MoneyCentral.
“Our vision is to serve the whole of West and Central Africa with high quality and competitively priced clinker from Nigeria.”
The CEO pointed out that the absence of limestone in most West and Central African states forces them to import bulk cement or clinker from Asia or Europe.
Dangote Cement is also constructing export terminals in Onne (Port-Harcourt).
The projects being financed partly from a recent N100 billion bond issuance will be capable of handling up to 6 million tons of clinker / cement export at maximum capacity utilization and would generate substantial foreign exchange and help improve Nigeria’s balance of trade.
West Africa is set to import over 18 million tons of cement and clinker in 2020, according to the Global Cement report. Dangote Cement plans to replace those imports by exporting from sea to about 15 countries in West and Central Africa, helping to boost profits.
Dangote Cement stock has returned -3.2 percent in the past year. It is the second largest listed company in Nigeria with a market capitalization of N2.29 trillion. The cement maker which is present in 10 African countries has grown volumes by a compound annual growth rate (CAGR) of 13.4 percent since 2011.