company overview
Dangote Cement Plc
Floatation will cement firm’s future Written by: Abigail Phillips Produced by: James Mitchell
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DANGOTE CEMENT PLC
Ibese cement manufacturing plant
Dangote Cement, the largest cement producer in subSaharan Africa, plans LSE listing in order to double capacity and fund expansion across Africa
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liko Dangote, founder of Dangote Group has commenced plans to list his N1.76 trillion ($11 billion) cement business, Dangote Cement Plc, on the London Stock Exchange next year to fund its rapid expansion. The Nigerian industrialist, who has capitalised on the continent’s booming demand for building materials, intends to free-float a 20 percent stake in Dangote Cement to finance its continuing growth. It will be the first listing of one of Dangote’s companies outside Nigeria. Already the largest cement producer in subSaharan Africa, Dangote Cement is more than doubling capacity this year to 21m metric tonnes, and wants to reach 50m tonnes by 2015. Besides
SECTOR
Nigeria, where it has three plants and 70 percent market share, the company has contracts to build factories in fourteen African countries, from Senegal to South Africa to Ethiopia. Aliko Dangote, whose net worth is $12bn according to Forbes, said he wanted to quadruple profits within four years and turn the business into the world’s most profitable cement company. Capital investments Aggressive growth plans target a strong panAfrican presence as Dangote Cement evolves to become a truly multi-national corporation. As part of this drive, Dangote Cement is committed to making Nigeria a net exporter of cement and
$11 billion
Aliko Dangote, founder of Dangote Group has commenced plans to list his N1.76 trillion ($11 billion) cement business
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„I invite you to take advantage of our group.“ David Allen, Constructor – IMS Engineering
HAZEMAG Group Brokweg 75 48249 Dülmen, Germany
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Shishen mine – South Africa
Zementeria di Costantinopoli – Italy
Sines – Portugal
IMS IMS Engineering (Pty) Ltd 10 Derrick Road, Spartan, 1620 PO Box 8003, Edleen, 1625, Gauteng, South Africa
+27 (0) 10 001 8200 +27 (0) 11 970 3204 imse@imsgroup.co.za www.imsengineering.co.za
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IMS ENGINEERING (PTY) LIMITED G
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Shishen mine – South Africa
Employees: 92 Established: 1949 Industry: Mining Services: IMS is one of South Africa’s leading comminution and separation / sorting technology providers, offering our customers an extensive range of application solutions adapted Zementeria specific di Costantinopoli –communituion Italy to suit international mining and materials processing conditions. Applications in which we specialise include crushing, high pressure grinding rolls (HPGR), briquetting, compaction, separation and sorting, feeders, drying, recycling and tube-cleaning systems. Ongoing Projects: IMS Engineering has successful installations across almost all minerals including Iron, Diamonds, Manganese, Zinc, Copper Sines – Portugal and Aggregate. Key installations include complete crushing plants in both an Iron Ore Plant in the Northern Cape as well as a Diamond Mine in Botswana. Management: Paul Bracher – Managing Director Johan Snyman – General Manager Andrew Welsh – Chief Financial Officer Website: www.imsengineering.co.za
DANGOTE CEMENT PLC
M A N U FA C T U R I N G
Ibese cement manufacturing plant
Africa a leading manufacturer. To this end, the company has just spent $3.5bn increasing its footprint across the African continent. It has made 20 capital investments, buying factories and machinery and employee training is underway. Dangote Cement has plant projects in Senegal, Zambia, Tanzania, South Africa, Congo, Ethiopia and Cameroon to name just a handful of its 14 territories. Global standards In order to achieve global success Dangote Cement is doing a lot more than throwing money
“We have a very good understanding of our markets and we know our industries better than any of our competitors” – Devakumar Edwin, Dangote Cement CEO
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DANGOTE CEMENT PLC
M A N U FA C T U R I N G
at the business. Many contributing factors will allow Aliko’s ambition to become reality. “We have a very good understanding of our markets and we know our industries better than any of our competitors,” says Edwin. “We always invest in ultra modern technology, which gives us the lowest fuel consumption and overall best efficiency, so we invest a lot of money but it gives long-term, substantial returns. We also invest a lot in our people. “The other area we excel in is quality, every plant is managed to very high standards and this leads to quality assurance. We can export globally owing to these high standards.” The company also has a competitive advantage owing to its market share.
SUPPLIER PROFILE
Dangote has cement exports business in the bag
FBN INSURANCE BROKERS LIMITED
Employees: 60 Established: 2000 Industry: Insurance Services: Risks Solutions, Risks Management & Advisory Services Ongoing Projects: Branch Expansion Management: Mr. Fidelis O. Ojeah; Mr. Olumide Ibidapo; Mr. Felix Akinnuoye Website: www.firstbanknigeria.com
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HAVER & BOECKER
THE ENGINEER
STORAGE HANDLING LOADING SERVICE
M 970-E4
PACKAGING
HAVER & BOECKER – THE FULLLINER EPC supplier for the cement industry
HAVER & BOECKER · Phone: +49 2522 30-0 · E-mail: cement@haverboecker.com · www.haverboecker.com
DANGOTE CEMENT PLC
M A N U FA C T U R I N G
Solid foundations The Dangote Group started as a trading company in 1981 with an initial focus on cement. Over time it diversified into a conglomerate trading cement, sugar, flour, salt and fish. By the early 1990s the Group had grown into one of the largest trading conglomerates operating in the country. In 1999, the Group made a strategic decision to transit from a trading based business into a fully-fledged manufacturing operation after recognising a gap within the emerging manufacturing sector. “The move to manufacturing was a bit easier for us because over the years we had developed a strong distribution network, we had access to materials, we had logistics and the ability to import,” said Edwin. “We just needed to focus on the
SUPPLIER PROFILE
“We are in a phase of expansion at the moment – we are growing the business across Africa” – Devakumar Edwin
HAVER & BOECKER OHG
Employees: 2,550 Sales 2012: 400 Million Euro Industry: Engineering of logistic systems for the cement, chemical, minerals and food industry Services: From basic engineering to preventive maintenance Ongoing Projects: More than 150 on-going worldwide Management: Family-owned and managed company - Managing partners: Walter Haver and Dr. Reinhold Festge Website: www.haverboecker.com
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NIGERIA, MINING LIMESTONE: QUALITY MADE BY SURFACE MINER 2500
The challenge: selective extraction of limestone without drilling and blasting. The answer: a fleet of Surface Miners from Wirtgen for cutting, crushing and loading in a single operation. The result: maximum output and cost-efficient mining of limestone for cement production. ROAD AND MINERAL TECHNOLOGIES
www.wirtgen-group.com
A long-standing and evolving commitment to Africa:106925 CC ‘word only’_A4. A_WG_31_A5_4c_EN.indd 1
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DANGOTE CEMENT PLC
M A N U FA C T U R I N G
manufacturing itself.” It was at this time that Edwin joined the company with a wealth of experience in engineering and business management. He has contributed to the company ever since, focusing on growth followed by consolidation. “Across the Group we are intent on refocusing and repositioning ourselves all the time,” said Edwin. “We are in a phase of expansion at the moment – we are growing the business across Africa – but we have also been consolidating our smaller businesses and focusing on bigger businesses where we believe there is greater scope for expansion.” The Group’s core business focus is to provide local, value added products and services that meet the ‘basic needs’ of the populace. Through the construction and operation of large scale manufacturing facilities in Nigeria and across
Obajana cement manufacturing
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DANGOTE CEMENT PLC
Africa, the Group is focused on building local manufacturing capacity to generate employment and provide goods for the people. This core aim underpins the company and has given it scope for expansion. The product is popular within the industry 16
Logical progression Gradual and logical progression has played a big
M A N U FA C T U R I N G
part in Dangote’s success. The company started as a small trading entity and has developed over time ensuring every division of the business runs efficiently. Its expansion is always strategic and consolidation at every phase guarantees there are no loose ends. “Once expansion is complete we secure profits and expand again,” said Edwin. All profits are driven back into the business.
Company Information INDUSTRY
Manufacturing FOUNDED
1981
Defining attributes Since inception, the Group has experienced phenomenal growth on account of quality of its goods and services, its focus on cost leadership and efficiency of its human capital. Today, Dangote Group is a multi-billion Naira company poised to reach new heights, in every endeavour competing with itself to better the past. Its imminent listing on the LSE will increase the value of the company and Edwin believes “the raising of funds will give the company a lot of strength – it will allow us to claw back all the revenue we have lost in capital investments and re-invest in new projects”. Many factors have contributed to the business’s success and have raised it to the position it is in now; technology, training, investment, strong management. However, for Aliko, listing Dangote Cement on the LSE is a milestone achievement and one the company would not have met had it not been for his drive, passion and ambition. Dangote Cement is on the cusp of even bigger and better achievements.
HEADQUARTERS
Nigeria KEY PEOPLE/ TITLES:
Aliko Dangote - Founder Devakumar Edwin Dangote Cement CEO PRODUCTS
Cement
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DANGOTE CEMENT PLC Union Marble House, 1 Alfred Rewane Road, PMB 40032, Falomo Ikoyi, Lagos, NIGERIA Telephone : 234 -1- 448 0815, 448 0816 Fax : +234 1 463 0316, 271 2231 corporate.communications@dangote.com www.dangote.com