Africa’s richest man, Aliko Dangote, has signed a $4.3 billion deal with Sinoma International Engineering Co, a Chinese engineering company, to build factories for his cement company across Africa and Asia.
According to a report by Reuters, Sinoma, a state-owned company, will build 7 cement plants for Dangote Cement across Cameroon, Ethiopia, Kenya, Mali, Niger, Nigeria, Senegal, Zambia and Nepal. The new factories will be completed within 30 months and will add about 25 million tonnes to Dangote Cement’s current production capacity of 45 million tonnes.
While Nigeria remains the largest revenue earner for Dangote Cement, accounting for 86% of the company’s total revenue, sales outside Nigeria now account for 14% of the company’s sales, up from 3% the previous year, according to the company’s half year results published in July 2015.
Dangote Cement is the largest publicly traded company on the Nigerian Stock Exchange with a Market capitalization of $15 billion. Aliko Dangote, who is Africa’s richest man, is the controlling shareholder. Dangote has said in the past that he wants to produce 100 million tonnes of cement a year by 2020.
On a related note, Dangote Cement PLC inaugurated its $250 million cement grinding plant in Douala, Cameroon, on Thursday. The company also laid a foundation stone for a 200-meter jetty in Douala.
Speaking at the launch ceremony, Aliko Dangote, President of the Dangote Group, said that the plant, which has a capacity of 1.5 million metric tonnes per annum (mmtpa), was a significant feat in the operations of the cement company.
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