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Dangote Cement Set To Reduce Cost Of Cement - Business - Nairaland

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Dangote Cement Set To Reduce Cost Of Cement by IjeomaObasi: 12:00pm On Aug 15, 2012
To assuage the growing concern over the perceived high cost of cement in the country, leading manufacturer of the product, Dangote Cement Plc has commenced a systematic liberalisation of the product distribution .

The Company said it has successful doubled local production with new capacity still ramping up.

The management said at the weekend that it was increasing the distribution outlets by opening more mega depots and signing on new dsitributors so that the consumers can reap the benefit of the increased local production.

There have been concerns over the price of cement even with continuous efforts at increasing production, which has led to a successful local production beyond the national consumption demand .

Dangote Cement, which accounts for over 70 per cent of the local production, has continued to invest more in local production by expanding its production lines and establishing new plants to ensure the nation produces enough for home consumption and have surplus for export to other countries.

The management of Dangote Cement believes that only a liberalised distribution system can make increased local production translate to cheaper cement and bring meaning to the huge investments in local production.

With more investments by the sector’s players, local production has risen to about 27 million metric tons per annum high and above the national demand hovering between 17 and 18 million metric tons per annum.

Group Managing Director of Dangote Cement, Devakumar Edwin said the cement company decided to review its distribution network system to ensure the availability of the product by creating wider access for its customers. He noted that the move would ensure not only the stability of price, but also guarantee availability at the most reasonable price.

Edwin said the company has acquired 5000 trucks to boost its logistics and pave the way for even distribution of the product across the nation, noting that “having solved the problem of logistics, the next phase is to ensure a wider distribution depot and register more dealers and bring the product closer to the customers.

“What we are doing now is to liberalise the distribution network by increasing our depots and registering more credible distributors. All we require is the Certificate of company registration, two passport photographs and letter of intent. There is also opportunity for individuals to buy direct.

“Henceforth, we are guaranteeing 48 hours registration with a minimum purchase of one trailer load that is 600 bags monthly. In fact no deposit is required. And customers can collect from any of our plants”, Edwin stated.

According to him, individuals, corporate organisations and institutional buyers seeking to buy Dangote cement in bulk could just walk into any of the company’s depots or offices nationwide.

He added that the company has begun a campaign aimed at sensitising the people to this development. “In the long run, we hope that this effort will not only make cement available in every nooks and cranny of Nigeria but will reduce the price and make the price stable.”

“Our investments at Ibese and Obajana have helped Dangote Cement double shipments of locally produced cement that will help Nigeria towards self-sufficiency. The ramp-up of our new capacity is progressing steadily and we are increasing our distribution network to extend our reach in the market”, Edwin said.

Dangote Cement Group, which was listed on the Nigerian Stock Exchange in October 2010, is a fully integrated quarry-to-depot producer with an expected production capacity of 20mtpa in Nigeria by the end of 2012, increasing to 35.25mtpa in 2015. It plans to build a further 19mtpa of production and import capacity across Africa by 2015.

It has announced an investment of more than $2.5bn to build manufacturing plants and import terminals across Africa. Current plans are for eight cement plants in Cameroon, Ethiopia, Gabon, Republic of Congo, Senegal, South Africa, Tanzania and Zambia, as well as import/packing facilities in Cote d’Ivoire, Ghana

It has recently signed a memorandum of understanding for the construction of a 6mt plant in Calabar by 2015.

Through its recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and will soon transform the nation into a net exporter serving other African states. Indeed the half year result of performance of the cement company indicated over 100 per cent rise in the sale of locally produced cement.

Dangote Cement’s Obajana plant in Kogi, Nigeria, is the largest in Sub-Saharan Africa with 10.25tpa capacity across three lines and a further 3mtpa capacity planned by 2015. The Gboko plant in Benue state has 3mtpa capacity with an upgrade to 4mtpa expected by the end of the year.

The new 6mtpa Ibese plant in Ogun, near the key market of Lagos, was inaugurated in February 2012. An additional 6mtpa of capacity is planned for completion by 2015.

http://www.thenationonlineng.net/2011/news-update/57690-dangote-set-to-reduce-price-of-cement.html#.UCuAY8gvwXA.twitter
Re: Dangote Cement Set To Reduce Cost Of Cement by BlackMamba2: 12:11pm On Aug 15, 2012
He should be very fast about it ...we need our houses up in no time!
Re: Dangote Cement Set To Reduce Cost Of Cement by Kobojunkie: 1:24pm On Aug 15, 2012
The company and many others were supposed to reduce cost of cement from Naira 2000 something high, down to about Naira 1200 or so last year. Did that ever happen?

1 Like

Re: Dangote Cement Set To Reduce Cost Of Cement by maigaskiya1: 1:26pm On Aug 15, 2012
Black Mamba: He should be very fast about it ...we need our houses up in no time!
more grease 2ur elbows dangote
Re: Dangote Cement Set To Reduce Cost Of Cement by Yuzarsif(m): 1:28pm On Aug 15, 2012
Dat wil be very good because cement is course nw i buy it 2000 in my area
Re: Dangote Cement Set To Reduce Cost Of Cement by MurphyT1: 1:28pm On Aug 15, 2012
thumbs up to him, other cement companies shud follow
Re: Dangote Cement Set To Reduce Cost Of Cement by cyril83(m): 1:29pm On Aug 15, 2012
Story story........story! Bunch of thieves

3 Likes

Re: Dangote Cement Set To Reduce Cost Of Cement by realmscape: 1:30pm On Aug 15, 2012
dangote you should have reduced the price before letting your plans known to all them witches & wizards out there.... kuddos sha
Re: Dangote Cement Set To Reduce Cost Of Cement by wellheads(m): 1:34pm On Aug 15, 2012
I don't think dangote really wants to reduce the prices because of his concern for nigerians, but because he has realised that his sales are dropping sharply. An average informed nigerian will never buy dangote cement if elephant cement is available. In the SS too, I think they say Ibeto cement is preferred to dangote (though not sure).

Currently, both Dangote and Elephant cements are being sold for N1,850 per bag (in fact elephant is 51kg while dangote is 50kg), and you can see people buy upto 20 bags of elephant before anyone buys dangote. The sellers are now even forcing it on people. I asked someone to supply me 25 bags last week and he brought dangote (because he hasn't sold it in a long time), I bore the pain and money to return them and take elephant cement.
Re: Dangote Cement Set To Reduce Cost Of Cement by miccheck57: 1:34pm On Aug 15, 2012
Does he think we are interested in this cool story... Hw much are u reducing it to?... And wen exactly is the reduction starting?... That's all we want to know... Not all these stunts....

1 Like

Re: Dangote Cement Set To Reduce Cost Of Cement by HammedSodiqq: 1:40pm On Aug 15, 2012
This will facilitate massive construction works, leading to employment of labour. DANGOTE deserves commendation
Re: Dangote Cement Set To Reduce Cost Of Cement by realmscape: 1:41pm On Aug 15, 2012
wellheads: I don't think dangote really wants to reduce the prices because of his concern for nigerians, but because he has realised that his sales are dropping sharply. An average informed nigerian will never buy dangote cement if elephant cement is available. In the SS too, I think they say Ibeto cement is preferred to dangote (though not sure).

Currently, both Dangote and Elephant cements are being sold for N1,850 per bag (in fact elephant is 51kg while dangote is 50kg), and you can see people buy upto 20 bags of elephant before anyone buys dangote. The sellers are now even forcing it on people. I asked someone to supply me 25 bags last week and he brought dangote (because he hasn't sold it in a long time), I bore the pain and money to return them and take elephant cement.

ARE U A BRICKLAYER
Re: Dangote Cement Set To Reduce Cost Of Cement by ceejay80s(m): 1:43pm On Aug 15, 2012
Dangote na yeye big man, nigerians no even enjoy his money, go see how much e dey pay his factory workers, na only the manager level dey enjoy
Re: Dangote Cement Set To Reduce Cost Of Cement by DIG1: 1:47pm On Aug 15, 2012
Set τ̅☺, about τ̅☺!!! Action speaks louder, Dangote reduce d price of cement, Απϑ not set τ̅☺, dat will not see d light of d day.

1 Like

Re: Dangote Cement Set To Reduce Cost Of Cement by ganex(m): 1:56pm On Aug 15, 2012
Same old story,less talk but more action.Callous africans are used 2 talking b4 acting...na wao.
Re: Dangote Cement Set To Reduce Cost Of Cement by Beync(f): 2:00pm On Aug 15, 2012
Set to, abt to, everything is abt to happen in naija.
Re: Dangote Cement Set To Reduce Cost Of Cement by wellheads(m): 2:05pm On Aug 15, 2012
realmscape:
ARE U A BRICKLAYER

@realmscape: I am not a brick layer but working on a commercial apartment that I am building. I use roughly 25 bags of cement every two days on the project for the past four weeks. So I understand to a large extent how cement moves at least in my state.

On a lighter note,that ur question funny sha o! grin grin grin
Re: Dangote Cement Set To Reduce Cost Of Cement by lahips(f): 2:08pm On Aug 15, 2012
Dangote's price is really affecting our price,especially onitsha and enugu market (unicem cement) we are basically in d south south and south east region and to think my boss is not looking well at the market analysis coming in from the sales men in the market,instead of reducing the price he gave a conditional rebate,well i prayyyyy the price gets reduced,as it will do everyone good.especially this raining season when cement demand is always low.
Re: Dangote Cement Set To Reduce Cost Of Cement by manny4life(m): 2:15pm On Aug 15, 2012
Dangote is forced to reduce his price because of the "The Ibeto Theory". This theory can be further be explained under Ibetonomic grin grin grin
Re: Dangote Cement Set To Reduce Cost Of Cement by wellheads(m): 2:16pm On Aug 15, 2012
lahips: Dangote's price is really affecting our price,especially onitsha and enugu market (unicem cement) we are basically in d south south and south east region and to think my boss is not looking well at the market analysis coming in from the sales men in the market,instead of reducing the price he gave a conditional rebate,well i prayyyyy the price gets reduced,as it will do everyone good.especially this raining season when cement demand is always low.

how much is dangote, elephant and unicem in your state?
Re: Dangote Cement Set To Reduce Cost Of Cement by Chyz2: 2:20pm On Aug 15, 2012
You all should be thanking Ibeto for fighting and breaking Dangote's monopoly in cement and also thant the FG for dismissing dangote's anti-competitive complain about Ibeto. Dangote is not lowering to price because they are being nice to the citizen's, they are doing it out of pure competition against Ibeto to prevent a huge loss in the industry for them.
Re: Dangote Cement Set To Reduce Cost Of Cement by ismhab(m): 2:25pm On Aug 15, 2012
STORY-STORY.

1 Like

Re: Dangote Cement Set To Reduce Cost Of Cement by princemmab(m): 2:34pm On Aug 15, 2012
cyril83: Story story........story! Bunch of thieves
Tell'em
Re: Dangote Cement Set To Reduce Cost Of Cement by princemmab(m): 2:36pm On Aug 15, 2012
Chyz*:
You all should be thanking Ibeto for fighting and breaking Dangote's monopoly in cement and also thant the FG for dismissing dangote's anti-competitive complain about Ibeto. Dangote is not lowering to price because they are being nice to the citizen's, they are doing it out of pure competition against Ibeto to prevent a huge loss in the industry for them.
True talk. Diplomacy
Re: Dangote Cement Set To Reduce Cost Of Cement by princemmab(m): 2:38pm On Aug 15, 2012
Beync: Set to, abt to, everything is abt to happen in naija.
Not everything, some things has happened already eg corruption, embezelment among others
Re: Dangote Cement Set To Reduce Cost Of Cement by apala911: 2:48pm On Aug 15, 2012
Let dangote reduce the cost of cement ooooo, some of. Us wan build houses
Re: Dangote Cement Set To Reduce Cost Of Cement by Nobody: 2:56pm On Aug 15, 2012
Thanks to IBETO

1 Like

Re: Dangote Cement Set To Reduce Cost Of Cement by sylve11: 3:08pm On Aug 15, 2012
Black Mamba: He should be very fast about it ...we need our houses up in no time!

u took that outta my mouth. grin cool
Re: Dangote Cement Set To Reduce Cost Of Cement by eastman11: 3:11pm On Aug 15, 2012
Dangote did not say he is reducing the price of Cement, he only said he has liberalized distribution by building more warehouses and buying more truck for distribution which will make the product more available and hopes this will eliminate scarcity, by so doing the price of cement will remain as it is presently as it may not go up to N2000 again. Note that the price of cement is currently between N1700 and N1850 because we are in rainy season and the demand is low so distributors and retailers have to reduce their profit margin in order to sell.

The company price of one bag of Elephant Cement/unicem is N1600 while Dangote is N5,545. Dangote is producing more than they are selling at the moment because of the rainy season and they are devising a means of flooding the market with there excess products, after rainy season when the market picks up there is no guarantee that they will be able to satisfy the demand and we may go back to status quo. The man is not doing any thing to cut down cement price otherwise he should have announced price reduction may be to N1,300.

1 Like

Re: Dangote Cement Set To Reduce Cost Of Cement by Showab: 3:15pm On Aug 15, 2012
I bought Unicem cement yesterday in Calabar @ N1,650/ bag.
Re: Dangote Cement Set To Reduce Cost Of Cement by lahips(f): 4:05pm On Aug 15, 2012
@wellheads,in calabar we do not av dangote or elephant cement its unicem domineering, but using onitsha market for example dangote is 927,000 for direct delivery and 860,000 for self collect. While unicem is 990,000 with 30,000 rebate. Dis are in naira (per ton) and each ton is 600 bags dats one full truck though some of dangote's trucks carry 800 bags

In calabar Our factory price is 810,000 per truck.d distributors land it at 890,000 within town most times for now though it fluctuates.

Anyway we are expecting dangote here as he is already penetrating the uyo market and based in some property acquirement rumours here
Re: Dangote Cement Set To Reduce Cost Of Cement by crackhouse: 4:12pm On Aug 15, 2012
Ibeto all the way. Reliable and cheaper too. Dangote have enjoyed enough monopoly in the past and now he want to reduce the price b/cos of competition. Thanks to Gej's govt and No Thanks to OBJ's govt

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