Aliko Dangote has announced a $400 million expansion plan for the Mugher cement plant in Ethiopia, set to double its production capacity to 5 million tons annually. Despite past violence and operational challenges, his projects include the establishment of a new grinding unit and investment in the Omo Kuraz sugar factory, reinforcing local industry and reducing import reliance in Africa.
Aliko Dangote, the wealthiest individual in Africa, has unveiled a $400 million initiative to restore a second production line at the Mugher cement plant in Ethiopia. This expansion aims to double the plant’s annual output to 5 million tons, highlighting Dangote’s commitment to increasing production capacity despite past challenges, including unrest in the area that has previously disrupted operations.
Operational since 2015, the Mugher plant has encountered difficulties such as vandalism and violence affecting staff and equipment. Notably, in 2018, the country manager of Dangote Cement Plc, along with two other employees, were tragically killed, illustrating the risks tied to operations in a tumultuous environment.
Dangote stated, “Despite the ups and downs, we have successfully repaid all our loans and repatriated our profit.” He indicated that the expansion is slated to become operational within the next two and a half years, reinforcing confidence in the investment’s future success.
Furthermore, Dangote plans to set up a new greenfield grinding unit that will add another 3 million tons per annum in capacity. This new facility is part of a broader strategy to strengthen the company’s standing in the local market and enhance production efficiency.
Collaboration with state-owned Ethiopian Investment Holdings will also see investments in the Omo Kuraz sugar factory, showcasing Dangote’s diverse interests in agriculture and manufacturing. This aligns with his overall strategy to bolster local production in Africa and lessening reliance on imports.
Operating across more than 10 African nations, including Nigeria and South Africa, Dangote Cement stands as Africa’s largest cement manufacturer, with a total production capacity exceeding 51 million metric tons annually. This positions the company as a significant player in the cement market, addressing regional supply gaps effectively.
In addition to cement, Dangote has established the Dangote Refinery in Lagos, recognized as the largest single-train refinery globally, with a capacity to process 650,000 barrels of oil daily. This venture is crucial for Nigeria as it aims for self-sufficiency in fuel production, reducing import dependence.
Moreover, Dangote Group is also one of Africa’s leading sugar producers, supplying both household and industrial sectors. With a diverse product line, including flour and pasta, the group plays a vital role in enhancing food security across Nigeria.
Aliko Dangote’s $400 million investment to expand the Mugher cement plant underscores his commitment to boosting production capacity despite previous operational challenges. With a focus on diversifying investments in sectors like sugar and refining, Dangote aims to reduce Africa’s import dependence while strengthening local industries. His strategy continues to position Dangote Group as a leader in the manufacturing and infrastructure landscape of Africa.
Original Source: www.arise.tv
