Thursday, 4 September 2014

Dangote Cement Slashes Prices, Launches 32.5 Grade

Dangote Cement Plc yesterday announced that it had reviewed the price of cement in the country downwards with about N100 slashed off the original price of each 50 kilogramme bag of cement.
According to the Managing Director of the company, Mr. Edwin  Devakumar, who spoke to journalists in Lagos, beginning from today, distributors lifting cement from the various Dangote cement plants across the country, will pay N100 less per 50 kilogramme bag of cement.
Devakumar also stated that to further comply with the ongoing Standards Organisation of Nigeria (SON) directive and regulation on the various classes of cement and their prescribed uses, “Dangote Cement Plc has announced plans to launch its brand of the premium
32.5 cement grade, selling for N200 lower per bag than the price of the higher strength 42.5 grade.”
The managing director said the 32.5 cement grade from the stable of Dangote Cement was also to ensure consumers pay the right  price for the right value so that consumers would not be paying more for lower grade as is presently the case.
The largest cement producer in Nigeria noted that the move is to develop an array of cement types to meet the varied needs of consumers for the different grades of cement.
Dangote, with this move, now produces 42.5 for column casting, block making, decking and other general purpose construction work that require high strength, while also producing the premium 32.5 grade for plastering and flooring only.
The company also noted that it would continue with its nationwide campaign and capacity building which it initiated and had sustained in the past three years, to ensure that the different grades of cement are easily identified by users and used only for their prescribed purposes.
The company is also pushing out the 52.5 grade for specialised construction of high strength and specialised structures such as bridges, flyovers among others.
The 32.5 grade of cement, which has the lowest strength among the various cement products is priced lower than the others, selling for N200 lower than the price of the higher strength 42.5.
Dangote said in compliance with the SON standard for cement quality and packaging, the lower 32.5 type on the Dangote shelf will be clearly labelled as such, in order to prevent the problem of misapplication and misuse of the product, which has become rampant in the nation’s building and construction industry.
The company is also to intensify its campaign and training of users on the proper application of all grades of cement.
Devakumar also noted that the addition of nine million metric tonnes capacity to its original 20 million metric tonnes per annum capacity across its various plants had significantly increased its ability to supply  teeming consumers.
According to him, with the addition of the fresh  nine million capacity, comprising of six million metric tonnes in the Ibese plant and three million metric tonnes in the Obajana factory,  Dangote has extended its capacity of integrated cement production in the country from about 20 million tonnes per annum, to around 29 million tonnes.
He also promised that the expansion which had led to an increased supply of cement to the nation’s market, has also resulted in the price reduction of around N100 per 50 kilogramme bag of cement.
“We have significantly increased the supply of cement to the market and as it is expected, the enhancement in supply of the product to the market has also resulted to a reasonable reduction in the price of the product,” Devakumar said.
He hinted that the formal inauguration of the new nine million tonnes capacity enhancement would hopefully be carried out by President Goodluck Jonathan next month.

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