Dangote Cement’s new plant in Itori, Ogun State, is set to play a major role in the company’s strategy to increase cement and clinker exports to neighbouring African countries.
The company’s Group Managing Director and Chief Executive Officer, Arvind Pathak, said the facility is entirely export-oriented and will serve as a hub for supplying neighbouring markets and Dangote Cement’s sister companies across Africa.
Speaking during Dangote Cement’s Capital Market Day presentation in London, Pathak said the first phase of the Itori facility would have a production capacity of six million tonnes. The company is currently producing about three million tonnes and expects output to rise to approximately five million tonnes next year.
Production at the facility will consist mainly of clinker, which is a major component used in cement manufacturing. The clinker will be supplied to Dangote Cement’s operations in countries including Cameroon and Senegal, as well as other regional markets.
The company also plans to supply clinker to neighbouring countries such as Benin and Togo. According to Pathak, demand from these markets and Dangote Cement’s sister companies is expected to absorb the entire capacity of the plant’s first phase.
For transportation, clinker produced at Itori will be moved by road to Apapa, where Dangote Cement already has infrastructure to handle exports. Pathak said only limited improvements would be required and that the company does not expect significant additional capital expenditure for the logistics arrangement.
The location of the plant is also considered strategic because of its proximity to the company’s main limestone basin. Itori is about 18 to 20 kilometres from the main basin, allowing the company to reduce transportation requirements and speed up the development of the facility.
Dangote Cement described the Itori project as a brownfield expansion, a strategy that allows companies to build on existing industrial infrastructure rather than developing an entirely new site.
The company said the expansion forms part of its broader ambition to increase its total cement production capacity to 80 million tonnes. Dangote Cement is relying on brownfield projects because they can require lower capital expenditure and have faster payback periods.
The company had also announced an agreement worth more than $800 million with China’s Sinoma International Engineering to expand the Itori facility from six million tonnes to 12 million tonnes annually.
The expansion is expected to strengthen Dangote Cement’s ability to supply African markets while increasing Nigeria’s participation in regional cement and clinker trade.
