Dangote Closes Down BCC Cement Plant in Gboko

Alhaji Aliko Dangote is winning

The management of Dangote Cement Plc has completed arrangements to close down its four million metric tons per annum Gboko Plant, for the moment because of excess supply in the cement market.

The Group Head, Corporate Communication, Dangote Group, Anthony Chiejina, who stated this in Lagos, said it became necessary because of excess circulation of the product in the market arising from the success being recorded in local production.

He said continued importation of subsidised cement into the country has made the situation worse, adding that initially, within the first eleven months there have been increased productions, now surpassing demand.

Chiejina said compared to the same period last year, the total supply figure has increased by 11.4 per cent.

He said it was consequently demoralizing to note that in spite of the glut in the local cement market, cement is still being imported, a situation, Chiejina said, is in disagreement with government’s backward assimilation strategy.

Answering why the choice of BCC for a provisional shutdown, the Dangote Group’s image-maker, said, “With the dumping of subsidised imported cement in the South Eastern market, there is no way our Gboko Cement plant can survive. In fact, staffs have been put on forced leave pending when the situation improves.

“Inventory of finished products is beginning to build up at our plants. Don’t forget that projects from our investments of about N280 billion in additional capacity are already on stream, with lines 3 and 4 at Ibese and line 4 at Obajana, coming on stream early this year.”

He said part of the solution lies in government considering a total ban on the importation of cement in view of the fact that local production now exceeds demand, or in the substitute, adds to duty, and levy on imported cement.

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2 Comments

1. 

   Tito Tar. Ayangebee

   December 7, 2012 at 11:43 am

   its unfortunate the way our economy is been run……when public companies are sold to selected individuals who patronise the government of the day without due consultation with the host community it becomes an issue. the number of pakistanians in management positions in benue cement company is more than that of nigerians and the host community has less than 5% of junior staff of the company.unless true federalism is practiced where the oil states control their oil resource and a poor state like benue control its own we shall never move forward in this country.
2. 

   john

   December 7, 2012 at 8:25 pm

   When demand rises, prices escalates uncontrollably. But when there is excess supply, the scroungers want government protection. That is the Law of Demand and Supply upside down. Head or tail the consumer is the loser. Really bad!