company overview
Apr 06, 2016
companyoverview
Dangote Cement PlcFloatation will cement firm’s futureWritten by: Abigail Phillips Produced by: James Mitchell
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DANGOTE CEMENT PLC
A 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 sub-Saharan Africa, Dangote Cement is more than doubling capacity this year to 21m metric tonnes, and wants to reach 50m tonnes by 2015. Besides
Ibese cement manufacturing plant
Dangote Cement, the largest cement producer in sub-Saharan Africa, plans LSE listing in order to double capacity and fund expansion across Africa
S E C T O R
www.dangote .com 5
DANGOTE CEMENT PLC
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 pan-African 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
Aliko Dangote, founder of
Dangote Group has commenced
plans to list his N1.76
trillion ($11 billion) cement
business
$11billion
G R O U P
HAZEMAG Group
Brokweg 75
48249 Dülmen, Germany
IMS
IMS Engineering (Pty) Ltd
10 Derrick Road, Spartan, 1620
PO Box 8003, Edleen, 1625, Gauteng, South Africa
+49 2594 77- 0
www.group.hazemag.de
+27 (0) 10 001 8200
+27 (0) 11 970 3204
www.imsengineering.co.za
„I invite you to take advantage of our group.“ David Allen, Constructor – IMS Engineering
Shishen mine – South Africa
Zementeria di Costantinopoli – Italy
Sines – Portugal
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G R O U P
HAZEMAG Group
Brokweg 75
48249 Dülmen, Germany
IMS
IMS Engineering (Pty) Ltd
10 Derrick Road, Spartan, 1620
PO Box 8003, Edleen, 1625, Gauteng, South Africa
+49 2594 77- 0
www.group.hazemag.de
+27 (0) 10 001 8200
+27 (0) 11 970 3204
www.imsengineering.co.za
„I invite you to take advantage of our group.“ David Allen, Constructor – IMS Engineering
Shishen mine – South Africa
Zementeria di Costantinopoli – Italy
Sines – Portugal
Anz_HAZ_Group_IMS_Nigeria.indd 1 31.08.12 08:42
SUPPLIER PROFILE
IMS ENGINEERING (PTY) LIMITED
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 specific communituion solutions adapted 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 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
G R O U P
HAZEMAG Group
Brokweg 75
48249 Dülmen, Germany
IMS
IMS Engineering (Pty) Ltd
10 Derrick Road, Spartan, 1620
PO Box 8003, Edleen, 1625, Gauteng, South Africa
+49 2594 77- 0
www.group.hazemag.de
+27 (0) 10 001 8200
+27 (0) 11 970 3204
www.imsengineering.co.za
„I invite you to take advantage of our group.“ David Allen, Constructor – IMS Engineering
Shishen mine – South Africa
Zementeria di Costantinopoli – Italy
Sines – Portugal
Anz_HAZ_Group_IMS_Nigeria.indd 1 31.08.12 08:42
M A N U F A C T U R I N G
www.dangote .com 9
DANGOTE CEMENT PLC
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 standardsIn 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
Ibese cement manufacturing plant
DANGOTE CEMENT PLC M A N U F A C T U R I N G
www.dangote .com 1 1
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.
Dangote has cement
exports business in
the bag
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
SUPPLIER PROFILEFBN INSURANCE
BROKERS LIMITED
HAVER & BOECKER – THE FULLLINEREPC supplier for the cement industry
HAVER & BOECKER
THE ENGINEER
STORAGE
HANDLING
PACKAGING
LOADING
SERVICE
HAVER & BOECKER · Phone: +49 2522 30-0 · E-mail: [email protected] · www.haverboecker.com
M 9
70-E
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DANGOTE CEMENT PLC M A N U F A C T U R I N G
www.dangote .com 1 3
Solid foundationsThe 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
“We are in a phase of expansion at the moment – we are growing the business across Africa”– Devakumar Edwin
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
SUPPLIER PROFILEHAVER & BOECKER OHG
ROAD AND MINERAL TECHNOLOGIES www.wirtgen-group.com
NIGERIA, MINING LIMESTONE:QUALITY MADE BY SURFACE MINER 2500
The challenge: selective extraction of limestone without drilling and blasting. The answer: a fl eet of Surface Miners from Wirtgen for cutting, crushing and loading in a single operation. The result: maximum output and cost-effi cient mining of limestone for cement production.
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A deep and long-standing commitment to Africa
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DANGOTE CEMENT PLC M A N U F A C T U R I N G
www.dangote .com 1 5
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.
Logical progressionGradual and logical progression has played a big
The product is popular
within the industry
M A N U F A C T U R I N G
www.dangote .com 1 7
DANGOTE CEMENT PLC
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.
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.
Company Information
I N D U S T RY
Manufacturing
F O U N D E D
1981
H E A D Q U A RT E R S
Nigeria
K E Y P E O P L E /
T I T L E S :
Aliko Dangote - Founder
Devakumar Edwin -
Dangote Cement CEO
P R O D U C T S
Cement
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
www.dangote.com