Dangote Cement Shuts Gboko Plant in Nigeria Over Price Dumping
Dangote Cement Plc (DANGCEM), Nigeria’s biggest company by market capitalization, shut its Gboko plant in the central region of the country because imported, cheap cement is being sold in the area served by the unit.
“There is massive importation and dumping of low-quality, cheap cement imported into the Enugu and Port Harcourt area” in southeastern Nigeria, said Anthony Chiejina, a spokesman for Dangote. This has led to rising levels of unsold cement at the plant, which has an annual capacity of 4 million metric tons, he said.
The closing is temporary and a resumption date isn’t known, Chiejina said. Workers have been sent home and were told they would be recalled “once the situation improves,” he said.
Dangote, Africa’s biggest producer of the building material and owned by billionaire Chairman Aliko Dangote, will raise output to 46.3 million metric tons by 2015 as its expands across Africa, it said on April 5. Output in Nigeria, sub-Saharan Africa’s second-largest economy, will advance to 32 million tons by 2015 from 20 million tons this year, it said.
Dangote forecasts an annual profit of 146 billion naira ($929.5 million) this year from 124.9 billion naira in 2011, it said Nov. 1. The company’s net income for the first nine months this year increased by 15 percent to 106.5 billion naira, it said. Revenue advanced to 208.3 billion naira from 173.8 billion naira.
Dangote’s stock has risen 21 percent this year compared with a 27.5 percent increase in the Nigerian Stock Exchange All- Share Index.
To contact the reporter on this story: Vincent Nwanma in Lagos at email@example.com
To contact the editor responsible for this story: Dulue Mbachu at firstname.lastname@example.org