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Dangote reopens Gboko Cement Plant

By on February 1, 2013

Management of Dangote Cement Plc has announced the reopening of its Gboko Cement Plant in Benue State. The factory which is to operate at half capacity was closed down last year as a result of the glut in the domestic cement market.

The decision to reopen the plant was reached immediately after a meeting between President Goodluck Jonathan and the Chairman of Dangote Cement Alhaji Aliko Dangote in Abuja yesterday.

Giving reasons for the reopening, a source from Dangote Cement said, “Since the shutdown of the Gboko Cement Plant, Government has been engaging local cement manufacturers in discussions, trying to find solutions to the challenges facing the industry.

According to the source, Aliko Dangote was in an upbeat mood after the meeting with the president and in appreciation of the President’s concern and willingness to intervene; he gave immediate directives to restart operations at the Gboko Plant.

When contacted, Group Head, Corporate Communications, Dangote Group, Tony Chiejina confirmed the reopening and said, “We are confident that in the days ahead, we will see positive developments and actions that will address problems of local cement manufacturers in Nigeria.”

It should be recalled that Dangote Cement temporarily shut down its Gboko Cement plant in December 2012, a move that was necessitated by the glut in the market, which arose from the success presently being recorded with the exponential increase in local production of cement and further compounded by continued importation of subsidized cement into the country. The continued importation of cement calls to question the rigorous implementation of the backward integration policy introduced by the Federal Government in 2002 to encourage local production.

Cement distributors are in high spirits following the announcement of the reopening. Chief Gab Alim, an Ogoja-based distributor said the reopening of the plant will reinvigorate cement business in Cross River State especially in Ogoja axis which is near Benue State. He said that with the opening, construction works which had slowed down in the area, will resume resulting in a win win situation for all stakeholders.

Staff, traders and business owners in Gboko are jubilating over the reopening. They said that the restarting of the cement plant means the restarting of their source of livelihood as businesses that went into hibernation, will kick back to life.