Dangote Investing Rs 70 billion for Cement Factory

Kathmandu, Dec. 25- The Dangote Group of Nigeria has asked the government to help it find land to establish a cement factory. It has been looking at Dang, Makwanpur and Dhading districts as possible areas for its cement plant.

Headquartered in Lagos, the group’s Dangote Cement plans to invest US$ 800 million (Rs 70 billion) in the cement factory in Nepal. The company has been looking for land after obtaining the government’s approval for foreign direct investment in a cement factory.

About two months ago, Investment Board Nepal (IBN) gave the go-ahead to Dangote to invest in a cement factory in Nepal. On Tuesday, Dangote Cement’s CEO KR Rao met with Finance Minister Shankar Prasad Koirala and informed him that they had been exploring possible areas in Dang, Dhading and Makwanpur. He has also requested Koirala to make available 30 MW of power for the factory.

According to Rao, Dangote Cement plans to generate 30 MW out of the required 60 MW on its own by operating a thermal plant.

Finance Minister Koirala, who is also the Minister for Industry, assured him that by the time the company starts operation of the factory, there will be no power crisis in the country.

The minister said that it was government policy to help develop infrastructure for companies investing in the company. He has also requested Rao to look at investment opportunities in other parts of the country.

Dangote will pour in Rs 55 billion in the first phase of its investment plan in Nepal. The company is the largest cement manufacturer in Africa, and owns three factories in Nigeria. It has also made huge investments in sugar, dairy, juice, water, salt and noodles sectors.

The group is targeting a radical expansion plan across Africa as well which include factories in Senegal, South Africa, Cameroon, Gabon, Benin, Ethiopia, Tanzania, Zambia and the Republic of Congo, according to reports.

It has a short but hugely successful history in the cement industry, and has recently announced plans to increase its total capacity to 55 million tonnes a year by 2015. Its current capacity is 20 million tonnes.