Dangote plans big growth in African cement industry

…Zimbabwe left out

ALIKO Dangote, the richest person in Africa, is looking to expand cement capacity on the continent by 29 percent to 62 million tonnes, entrenching his flagship company’s position as the the continent’s biggest producer of the construction material.
The billionaire plans to add six million tonnes in Nigeria next year, taking volume in Dangote Cement Plc’s home market to 35 million tonnes, he said in interview on Bloomberg Television.
The rest of the expansion is planned mainly in West Africa, including Niger and Cote d’Ivoire.
The 62-year-old told shareholders in June the company plans to open plants in Nigeria that will allow it to export clinker to grinding plants in Cameroon and West Africa.
Dangote, who is building one of the world’s biggest refineries in Lagos, Nigeria’s commercial capital, in addition to investments in gas and petrochemical plants, said he expects total group revenue to grow to about $30 billion from $4 billion when the plants start operations in the next two years.
Thereafter, plans include investing about 60 percent of profit outside Africa, including the US and the UK.
“Sometimes in Africa you have issues of devaluation,” he said.
“We want to really preserve some of the family’s wealth.”
Dangote Cement reported 6 percent increase in profit for the six months through June to 119,5 billion naira (US$331 million), even as revenue fell 3 percent to 467,7 billion naira.
The stock climbed 0,5 percent to 151,50 naira at the close in Lagos, the most since August 22.
Dangote shares are down 20 percent this year compared to a 12 percent decline by the 156-member Nigerian Stock Exchange Main Board Index. — Bloomberg