30 — Vanguard, TUESDAY, NOVEMBER 11, 2014
Dangote Cement consolidates position, rolls out 32.5 cement STORIES by Jude Njoku
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ANGOTE Cement Plc last week, consolidated its leadership position as Africa’s largest cement manufacturing company, when it formally introduced the 32.5 grade of cement meant only for plastering, into the Nigerian market. With an annual production of over 42 million metric tonnes of cement in all its plants scattered across about 14 African countries, Dangote Cement Plc is the undisputed leader in the cement manufacturing sector in the continent. In Nigeria, the company produces29.5millionmetrictonnes of cement annually in its three plants located in Gboko in Benue State, Ibeshe in Ogun State and Obajana in Kogi State. Speaking at the formal launch of the new product, the Managing Director of the company, Mr. DevakumarV.G. Edwin explained that Dangote Cement ventured into the production of 32.5 grade of the product because the regulatory agency -the Standards Organisation of Nigeria, SON, has clearly spelt out the different uses of the various grades of cement which must be complied with by the cement manufacturing companies. Recalling the bitter controversy that greeted the clamour for the standardization of cement, Edwin maintained that the 42.5R grade of cement will remain Dangote Cement’s flagship product because of its superiority and varied uses.
Numerous pleas by customers Edwin said the company had resisted numerous pleas by its customers to produce the lower 32.5 grade and sell at a cheaper price, because it didn’t want the product to be misapplied . “Now the regulatory authority, the Standards Organisation of Nigeria, SON has stepped in. SON has taken controlling measures and they (SON) have re-emphasised that anybody producing the 32.5 cement must design their bags in a specific manner and the bags should carry clearly that this cement is meant for plastering only and not for any other application. The regulator has also said they are constituting teams to go into all the states and monitor how the product is being used because of the various incidents of building collapse in the country. So with these regulations in place, we have the confidence that we can now go into the production of 32.5 for plastering only,” he said. C M Y K
•Mr Edwin, GMD, Dangote Cement
•Dangote Cement plant going to the southern states will According to him, about 80 percent attract N100 as transport fee. “The of cement produced by the transportation fee has been precompany will still be the 42.5R determined and announced to grade. protect the consumers from The Dangote Cement GMD also indiscriminate high cost of gave reasons for the recent transportation and ensure the reduction of the price of the 50kg customer gets best value for the premium bag of cement. product. We have enough trucks According to him, the 32.5 grade to deliver the cement to your door of cement will now sell at N1,000 steps whether it is rainy season or ex-factory while the 42.5R will go dry season,” he said, adding that for N1,150 ex factory (excluding those demanding only one truckcost of transportation), because the load of cement will now be supply has outstripped the attended to directly by the demand for the product. With the company. recent addition of nine million These measures, according to metric tonnes ( six million metric the Dangote Cement boss, is the tonnes from Ibeshe plant and three company’s own way of helping million metric tonnes from millions of homeless Nigerians to Obajana plant) into the Nigerian build their own houses thereby market, the demand for the reducing the housing shortfall product is now lower than the 29.5 million metric tonnes currently produced by the estimated at 16 company. He noted million units. He that it was difficult to called for the use effect a price of the pensions reduction when fund in housing demand was higher delivery. On the than supply because company’s drive retailers would still for expansion, Mr have a way of Edwin said circumventing Dangote Cement whatever measures will be operating were put in place to in about 14 bring down prices. countries in sub“Now, we have more Saharan Africa products chasing and producing fewer customers,” he about 42 million said metric tonnes of On transportation, Edwin cement by the end Mr Edwin said the of this year. company has enough maintained that According to him, trucks to deliver the 42.5R grade the ravaging Ebola cement to any part of Virus Disease in the country. The of cement will Sierra Leone company is charging remain Dangote prevented the a transportation fee of commissioning of N200 for every bag Cement’s Dangote Cement of cement delivered flagship product plant in that to the far north, N150 country last because of its per bag for those month. going to the Middle superiority and Doyen of the Belt while those varied uses cement industry in Nigeria and
Honorary Adviser to the President of Dangote Cement Plc, Mr Joseph Makoju, an engineer, said the cement industry in Nigeria has come of age. He noted that Nigeria has moved from being a net importer of the product to a net exporter. This scenario, Makoju said, will help to stimulate growth andhealthycompetitionamongthe different manufacturers.
The Director -General of SON, Dr Joseph Odumodu, who was represented by Mrs Cynthia Ifeagwu, praised Dangote Cement for being the first to comply fully with the new cement standards set by the organisation. He restated the commitment of the regulatory agency to monitor and enforce compliance with the new standards. Representatives of the Nigerian Institute of Architects, NIA, and Bricklayers Association in their remarks, lauded the company for producing the new grade of cement.
Standardisation will create global confidence in Nigeria’s goods and services —Odumodu
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HE Director-General of the S t a n d a r d s Organisation of Nigeria, SON, Dr Joseph Odumodu has called on regulatory agencies in the country to always insist on international standards. They should also have zero tolerance for non-compliance with approved standards. Dr Odumodu who made the call in Lagos when he delivered the state of standards address at a press briefing to mark the 2014 World Standards Day, also enjoined consumers to demand quality and insist on improving quality. He explained that the falling price of oil should awaken Nigerians to the reality that standardisation is “Nigeria’s last ditch effort to avoid becoming a failed economy ”. Said he: “There are areas where we cannot compete with Japan but the industries in which we have comparative advantage, we must weigh in with all powers of standards. By so doing, we create global confidence in Nigeria’s products and services, grow richer, expand our spheres on influence, grow even richer by leveraging our boosted productivity and export trade
and have a victory to celebrate”. Odumodu who said he has succeeded in reducing fake and substandard products in the country from 80 percent to 40 percent, called on Nigerians not to play politics with the issue of standardisation. “It cannot be business as usual to no end. Each of us needs to make the commitment to help in reinventing Nigeria and take her one step to where the rest of the world stands. No nation, however powerful can go it alone or play its own standards that is not in tune with the global community,” he said The SON DG who stated that standards are universal, noted that there is nothing like Nigerian standard. “Anything that falls short of the global setting is substandard,” he said, adding that made in Nigeria for the world means thinking global, even if you are playing local. He maintained that foreign investors in Nigeria are not likely to drive Nigeria to the global market. “Indian and Chinese ventures in particular are welcome. They are good friends and our partners in progress but the future of Nigerian trade visa-vis the global market lies in the hands of indigenous players.