Dangote cement plant excites market

[Geza Ulole]

[h=1]Dangote cement plant excites market[/h]IN SUMMARY

• The projected capacity of the factory, to be built in Mtwara, southern Tanzania, is expected to be three million metric tonnes per annum, and Dangote is looking to get a good chunk of the market share.

Tanzania is set to more than double its cement production capacity in 2015 when a $420 million cement factory by Nigeria-based conglomerate Dangote is completed.
The projected capacity of the factory, to be built in Mtwara, southern Tanzania, is expected to be three million metric tonnes per annum, and Dangote is looking to get a good chunk of the market share.
“We hope to push our production capacity to 50 million metric tonnes per annum within the next five years, based on its ongoing projects, which are at various stages of completion,” he said.
Currently, Tanzania has an estimated production capacity of three million metric tonnes per annum against a demand of 2.2 million tonnes per annum.
The construction, in conjunction with Chinese firm Sinoma International Engineering Company Ltd, has already commenced and head of communication Tony Chiejina says the factory will be completed in the second quarter of 2015.
Also being set up is a $1.85 billion fertiliser plant in Mtwara whose construction will go hand in hand with the cement plant.
Dangote hopes that the new cement plant will supply countries in the East African Community market as well as Malawi and DR Congo.
The region is currently undergoing a massive infrastructure upgrade, which has pushed up demand for cement, as governments invest in the construction of roads, ports and bridges, railways and energy projects.
“The plant, once it starts production, should help reduce the cost of cement in Tanzania and the region,” said Devakumar Edwin, Dangote’s group executive director in charge of business development.
The price of cement per tonne remains relatively high in Tanzania, averaging between $90 and $105 due to high energy costs and dependence on imported clinker.
In Tanzania, a 50kg bag of imported cement retails at Tsh12,500 ($7.8) while locally produced brands are selling at between Tsh13,000 ($8) and Tsh15,000 ($9.3).
In Kenya, current prices range between Ksh700 ($8) and Ksh750 ($8.5) per 50kg bag while in Uganda, the average price is Ush32,000 ($12) as at December 2012.
READ: EA cement prices to fall with new entrants
Tanzania Portland Cement is currently the country’s biggest producer with a production capacity of 1.4 million tonnes per annum.
Comparatively, Tanga Cement has a capacity of 1.25 million tonnes per annum while Athi River Mining Tanzania produces of 750,000 tonnes per annum. Mbeya Cement plant has an installed capacity of 350,000 tonnes per annum.
Trade Minister Abdallah Kigoda said demand for cement in the region is expected to grow at a rate of between five and six per cent in the next few years. Mr Kigoda said that the construction and housing sector which has an annual growth rate of about 10 per cent is the main driver of cement consumption, thus pushing up demand.
Dangote Cement Group said it is investing more than $2.5 billion to build manufacturing plants and import terminals in 13 African countries.
Current plans are for eight cement plants in Cameroon, Ethiopia, Gabon, Republic of Congo, Senegal, South Africa, Tanzania and Zambia, as well as import and packing facilities in Cote d’Ivoire, Ghana, Guinea, Liberia and Sierra Leone.



http://www.theeastafrican.co.ke/business/Dangote-cement-plant-excites-market/-/2560/1689386/-/view/printVersion/-/1f5m1c/-/index.html

 

[Mwanahisa]

Porters Five forces, I see Dangote as a potential threat to new entrants in the market....!

 

[iMind]

Porters Five forces, I see Dangote as a potential threat to new entrants in the market....!

New entrate wapi hao...wakati dangote mwenyewe ni new entrant? Mi naona itakua neema kwetu kuanzia ajira hadi kushuka kwa bidhaa husika

 

[Wi-Fi]

New entrate wapi hao...wakati dangote mwenyewe ni new entrant? Mi naona itakua neema kwetu kuanzia ajira hadi kushuka kwa bidhaa husika

i second you on your post, japo kutakua na mikono ya baadhi ya watu, Aliko Dangote atakua msaada kwa watu esp huko mtwara!

 

[Njowepo]

Dangote will be a threat to the existing players in the market bse of two unique advantage
1.Nearby raw materials ie gypsum,limestone unlike other players who fetch gypsum beyond 200km
2.Using gas as a cheapest source of energy unlike other players who have limited access to Gas

This will be make Dangote cement cost of production per bag being the lowest thus being in the position to sell at the lowest price possible.The fact that is possiton near Mtwara port export will be his CASH COW

 

[Koba]

Very good news,nature ya viwanda vya aina hii (cement & mbolea) ni vya kupunguza umaskini kwa watu,chakula na makazi technically ndio maswala ambayo binadamu anahangaika nayo kila siku...thanks Dangote kwa kuona hilo!

 

[Kaa la Moto]

Kila investors wanapoanzisha mradi wao hapa nchini siku za uzinduzi tumelishwa sana matumani ya hizi neema lakini matokeo yamekuwa ni tofauti sana. Utaona ili kupoza moto wa Mtwara propaganda hizi zimekuja.
Wakati mmoja nilikuwa Kagera na akaja kufungua kiwanda cha sukari Mkapa akiwa na lugha kama hizihizi. Leo sukari Bukoba ni bei kubwa kuliko Dar. Na nina mifano mingine mingi tu.
Shida ya watanzania hatutunzi kumbukumbu na tunasahau haraka sana. Shauri yenu!

 

[Chumbageni]

Kiwanda kinajengwa sehemu gani Mtwara?