Dangote Cement Plc has temporarily closed its four million metric ton per annum Gboko plant in Nigeria due to the oversupplied cement market
Anthony Chiejina, Dangote Group’s group head of corporate communications confirmed the move, saying that the current problem was due to the exponential increase in local cement production and the continued import of subsidised cement into Nigeria.
According to Thisday, Chiejina said that production figures for the first 11 months of the year showed a dramatic increase in local cement production and that supply had now surpassed demand.
Despite the glut, cement importation, though reduced, has continued. Chiejina said that this brought into question the rigour of government policies designed to encourage local production.
“There is no way our Gboko cement plant can survive,” said Chiejina.
“In fact, workers have been asked to proceed on forced leave pending when the situation improves.
“Our inventory of finished products is beginning to build up at our plants. And don’t forget that projects from our investment of about N280bn (US$1.8bn) in additional capacity are already on stream, with lines three and four at Ibese and line four at Obajana, coming on stream early this year.”
Chiejina said other manufacturers were experiencing similar problems and called upon the government to protect local manufacturers, suggesting the construction of concrete, rather than asphalt, roads or even a complete ban on cement imports.
