Dangote To Crash Cement Prices By 300%
Dangote Cement Plc has predicted a fall in local cement prices by 300 percent from October.
The company said the price drop will be made possible by the supply of an additional nine million metric tons into the market from its factories at Ibese and Obajana (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,” said Devakumar Edwin, Group Managing Director, Dangote Cement.
The company is expected to release its own brand of 32.5 grade cement in the next seven days.
On why they are adding 32.5 cement grade to existing products, Edwin 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.