Monday, January 24, 2011

AFRICA: Nigeria: Dangote Targets N20 Million Metric Tones of Cement

Dangote Cement Plc has said that it is targeting an annual production capacity of 20 million metric tones of cement effective July this year.

Chairman of Dangote Group of companies, Alhaji Aliko Dangote made the revelation last week while speaking at the formal presentation of NIS BS OHSAS 18001:2007 and NIS ISO 9001:2008 certificate to Dangote Cement Plc by the Standards Organization of Nigeria (SON)


According to him, the company would surpass local demand and export the excess to neighbouring West African countries, where demand for cement is very high.

To this end, he said the company already has a plant in Ghana, emphasizing that there are good market opportunities in other neighbouring countries such as Liberia, Senegal, Sierra Leone and Cote D 'ivoire.

He said the company had alsoformally raised its stake in Sephaku Cement (Pty) Limited, which is based in South Africa, from 19.76 per cent to 64 per cent in October 2010, while it signed an investment pro protection agreement with the government of Zambia, in December 2010 to set up a cement plan that should be up and running by the year 2013.

In addition, Alhaji Aliko said the company had recently signed a deal with the Cameroon Government to enable it commence the production of that country.

The Chairman said on the long term measure, the company has plans to develop 46 million tones of production and terminal capacity in Africa by the year 2015.


He stressed that the company's is to become a truly African champion in the sector, capable of competing globally with the largest cement companies in the would, saying, the listing of the company on the Nigerian Stock exchange in October last year was part of the strategy.

He exercise the believe that quality certification of the company's processes such as was witnessed last Thursday would further enhance its drive towards becoming an African conglomerate.

"In Nigeria, where Dangote Cement accounts for more than 50 per cent of the market share, we are currently increasing the existing capacity of our plants and building new ones to take advantage of the proposed ban on imports by 2012", said.

Commenting on the award, the Chairman asserted that as a leader in the Nigerian cement business, Dangote Cement had always given priority to quality standards to maintain the value of its products for the customers , remarking that its cutting- edge technology gives it a competitive edge in the market.

Consequently, he said 13 of the company's subsidiaries could presently boast of quality management system ISO 9001 status.


This is even as the company had started the process for the implementation of the Occupational Health and Safety Management system OHSAS 18001 to enhance its leadership profile in the cement business not only in Nigeria but also in Africa.

He further disclosed that OHSAS 18001 is currently going on in three of is companies namely Dangote Agro Sacks/AD Star, Ikeja, Obajana Cement Plc and Dangote Sugar Refiner refinery Plc, while the process is completed at Dangote Cement Plc, Apapa plant..

Continuing, Alhaji Dangote said that certification to food safety management system ISO 22000 was also progressing in seven of the company's subsidiaries, assuring that Dangote Group is fully committed to the implementation of all the SON standards including environmental, to enable it retain its leadership position in the business.

The Chairman had earlier remarked that the quality management system is a standards that helps organizations to put in place processes that not only ensure consistent production quality but enhances customer satisfaction


He noted that the certificate is awarded to companies only after rigorous quality checks, explaining thus; "In our own case, the process of implementation of the standards started in 2000. The fact that Dangote Cement has won this prestigious award, therefore is an endorsement of our strict adherence to globally accepted quality standards in all our system and processes".

Speaking in a separate interview with Daily Champion, shortly after the award, the Director General of SON, Dr. John Nkanya said the major focus of the organization in 2011 would be on both quality of products produced in the country and imported.

He enjoined manufacturers to lay more emphasizes on improvement of standards of the quality of respective products, especially that 2011 election are drawing near.

Dr. Nkanya had earlier stated that the challenges of globalization were the driving forces for doing business and maintaining relevance at both national and international markets.

Considering the ever-changing customer requirements and the role of competitiveness in the global market, only organizations that have what it takes to remain afloat in the precarious market could survive the quality edge.

He explained that the model of these system to which Dangote Cement Plc was being certified shifted emphasizes to from conformity to rules and regulations to actual performance output and aims at the development of an Occupational Health and Safety Quality Management Systems to generic requirements .;

While asserting that quality is a moving target and as such does not have finishing line, he enjoined Dangote Cement Plc to note that the journey of excellence it is embarking upon does not have an end

He charged the company to keep the systems healthy and up-to-date in order to reap all the benefits of the standards.

According to him, the system having been certified would be placed on six monthly surveillance audits to ensure continuing suitability and effectiveness of its implementation /

In the course of audit exercise, where non-conformances are observed and are effectively corrected within the specified time frame, the systems would retained the certificates/

He however warned that the certificates would be withdrawn if the structures in place for certification break down and necessary corrective actions were not taken on observed non-conformamces.

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