Lagos — The Managing Director, Dangote Cement Limited, Mr. Knut Ulvmoen says plans have been concluded to increase local production of cement in the country to about 20 million tonnes this year.
He said the overall production of cement in the country is expected to crest at 18 million tonnes between now and 2012, while identifying energy as the problem militating against reduction of cement price.
"Even in a place that is producing locally today, the energy cost is our greatest problem. If this comes down, there should be room for cement price to come down. You can produce much more at less cost if your production is higher.This is because there is fixed cost, financial cost and lots of cost elements you have to put into consideration. What is important is for us to continue to improve production capacity in Nigeria than consumption."
He urged government to pay more attention to improved energy and infrastructure rather than running round checking companies to see those that are failing.
"Nigeria is a country that should be better. We have oil, gas, energy, and lots of solid minerals and huge home market. Of course if you look into the market, the whole ECOWAS has been part of it. There is good business for any foreigner who wants to move his business into the country. There are very few countries in the world with great potential to succeed like in Nigeria. That's why they are coming. It is a country with millions of people and large market. There is money to be made here; all they have to do is make things right" he stated.
Dangote Group of Companies said it has reached an agreement with Cameroonian officials to build $100 million (N15.24 billion) cement plant in Cameroon to ensure that Africa remains self-sufficient in cement production and making the products easily available and at highly affordable costs to the end users.
He said the encouragement to increase production was borne out of the need to improve production capacity of the product in Nigeria than consumption.
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