By Jude Njoku & Franklin Alli
Lagos—Dangote Cement Plc, yesterday, predicted
sharp drop in local cement prices by 300 percent
from next month.
The company said this will be made possible by
the supply of an additional nine million metric
tons into the market from its factories at Ibese
and Obajana.
Also the cement giant is coming out with its own
brand of 32.5 grade cement in the next seven
days.
Devakumar Edwin, Group Managing Director,
Dangote Cement, told journalists in Lagos that
the company is currently reviewing the selling
prices of its products with intent to reduce them
and make the products available with the recent
commissioning of additional six million metric
tons per annum lines 3 and 4 in Ibese, Ogun state
and another three million metric ton capacity
additional line 4 at Obajana, Kogi State.
Altogether, the company is producing locally at a
combined installed capacity of 29.25 million
metric tons per annum across its three plants in
the country –Ibeshe, Obajana and Gboko.
“We have significantly increased the supply of
cement to the market and as it is expected, the
enhancement in supply of the product to the
market has also resulted to a reasonable
reduction in the price of the product; our
distributors have started effecting the price
changes as the price of the 42.5 grade is now
less by N100 per bag, while the soon to hit
market 32.5 grades will be selling N200 lower
than the price of higher strength 42.5,” he
disclosed.
On why they are adding 32.5 cement grade to
existing products, he explained that it was in
response to popular demand from the customers
as well as in full compliance with the SON
directive encouraging production of all grades of
cement but with clear labeling on the use.
“The entrance of the 32.5 cement grade from
Dangote would ensure that the consumer pays
the appropriate price for the right value rather
than paying more for lower grade as is presently
the case in the market.
“Our 32.5 cement grade branded “Dangote
Cement 1X”, would be clearly marked in the
colour prescribed by the SON with the uses for
which it should be applied, which is purely for
plastering,” he stated.
Dangote with this move now produces 42.5 for
column and beam casting, block making, decking
and other general purpose construction work that
require high strength, while also producing the
premium 32.5 grade for plastering and flooring
only.
Edwin also informed that the company is also
pushing out the 52.5 grade for specialised
construction of high strength structures such as
bridges, flyovers among others.