Dangote Cement has promised to boost the capacity of cement factories in order to improve supply and crash the market price of the product.
The Group Chief Sales and Marketing Director of the company, Rabiu Umar, while speaking to journalist in Lagos on Monday said bout 40 per cent gap in cement supply had led to significant increase in the price of of the product across the country
Umar stated that the company was building more capacity with a new line in its Obajana cement factory and would commence production soon.
He said, “We have a new plant in Okpella, Edo state, that will start operations very soon. For the last couple of years one of our plants in Gboko, Benue State has not worked, but we have re-started the plant all in a bid to make sure there is enough production.”
“In every business, what drives the price is the demand and supply. Now as a business, we have not increased our price up until this point. So what has happened in price increment in the cement products is the forces of demand and supply.”
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According to Umar, the COVID-19 crisis, the combination of monetary policy changes and reduced capital market returns are some of the factors encouraging construction activities.
To also boost cement distribution, he said the company is deploying 2,000 brand new trucks.
He said, “We got into COVID-19 last year and immediately after the pandemic, there was a surge in demand, and it is not particular to Nigeria alone. “A couple of countries across the world like Mexico, South East Asia, among others are also experiencing the same.”
