Monday, April 23, 2012

Nigeria: Cement manufacturers seek import ban before FG’s August deadline


Cement manufacturers in Nigeria have called on the  Federal Government to ban the importation of bulk cement before the August deadline set by government, claiming that the volume of cement currently produced in the country  is enough to meet local demand.
“Government should enforce the ban before the August deadline”,  said Mr. Daljeet Ghai,  Group Chief Executive, Dangote Cement. “Dangote alone has the capacity needed to meet local demand and sustain supply of the commodity across the nation”, he said.
Group Chairman/CEO, Lafarge, Bruno Lafont also said that with the new plant commissioned by the company, the country is now self sufficient in cement.
The current production data from  the various plants in the country, obtained from Cement Manufacturers Association of Nigeria, CMAN, show that the country’s total cement production capacity is now  at 22.5 million metric tonnes (mmt) per annum while the country’s cement consumption is 18.5mmt.
Dangote alone currently accounts for 15 million mmt annum (Ibese- 6mmt, Benue Cement- 4mmt; Obajana- 5mmt) while Lafarge Wapco Cement Plc group is contributing 7.5mmt (Ewekoro l- (1.2mmt; Shagamu Cement Plant- 800,000metric tonnes and Ewekoro ll- 2.5mmt). Unicem produces 2.5mmt while  Ava cement produces 500,000 metric tonnes.
Citing the example of the company’s Ibese cement plant as basis for  confidence in the ability of  local manufacturers to meet domestic demand and still be able to export,  Dangote’s Ghai   said, “Ibese plant is grinding 480,000 tonnes per month, while daily production is 16,000 metric tonnes at  2,400 metric tonnes per hour.
“The Ibese plant, started with a daily production of 12,000 metric tonnes in February, but barely two months after, production  moved up to 16,000mmt, which is  it’s full installed capacity, and this  would lead to the achievement of the yearly target of six million metric tonnes of cement.”
Vijay Khana, Deputy Director, Operations, Ibese Cement plant added that on a daily basis, the company supplies   the market with more than 200,000 bags of cement from the plant.   ” We load 250 trucks daily; a private truck can carry 600 bags, each Dangote truck carries 800 bags; while smaller trucks carry 300 bags.”
Similarly, Nigeria’s second largest cement producer, Lafarge Cement Wapco Nigeria Plc, said they are ready for the import ban.  “For sure, I see it (ban on cement import) happening. The best thing for Nigeria is for us to manufacture here; if we manufacture here, we create jobs here, and we save the economy in terms of foreign exchange,” said Lanre Opakunle, Plant Manager, Ewekoro Cement Plant II.
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