Dangote Cement Plans to Double Output to 55 Million Tons by 2015
Dangote Cement Plc (DANGCEM), Africa’s biggest producer of the building material, said it plans to more than double annual total output to 55 million metric tons by 2015, more than the 51 million forecast last year.
The target, up from current output of 20 million tons, is based on “visible projects in Africa,” Chief Executive Officer Devakumar Edwin said today on a conference call from Lagos, Nigeria’s commercial capital.
The company, owned by billionaire Chairman Aliko Dangote, plans to start output in Cameroon, Zambia and South Africa in 2014, while it expects to produce in Tanzania, Ethiopia and Democratic Republic of Congo in 2015, Edwin said.
Dangote Cement expects steady progress on Africa from this year and “an increase in volumes from Nigeria with sales nearly up 16 percent in the first quarter of 2013, more than the market’s growth rate.”
Dangote Cement’s net income for the year through December advanced to 149.6 billion naira ($941.8 million) from 120.9 billion naira a year earlier, the company said yesterday. Revenue rose 24 percent to 298.5 billion naira.
Dangote expects exports to West Africa to boost revenue in 2013 and 2014 as its export terminals in Lagos and Onne in Nigeria’s Rivers State become operational in 2014, Edwin said.
The company’s shares were unchanged at 160 naira at the close in Lagos. The stock has advanced 25 percent this year, compared with an 18.6 percent rise in the Nigerian Stock Exchange All-Share Index. (NGSEINDX)
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